Trading is defined by "strategy" rather than "prediction"
When it comes to FX
“Will it rise from here?”
“Or will it fall?”
predicting that direction and taking a position in that direction.
I think many people have that image.
Of course, analyzing the market is important.
However, what I value in trading is
not just guessing the forecast correctly.
More importantly,
“If this happens, then do this.”
and beforehand planning a strategy.
The “two-position strategy” I practice
is based on this idea.
? Video explanation is here
https://www.gogojungle.co.jp/watch/2320
Hedging isn’t just having a sell and a buy
When you hear the word “hedging,”
you might think,
“A buy and a sell at the same time?”
But what I consider important in hedging strategy is,
not the hedging itself,
but beforehand thinking about what to do after that
When the market moves in the direction you expected.
When it moves in the opposite direction.
When it doesn’t move as you expected.
For each,
“If this happens, next I will do this.”
Having these options prepared.
I call this “strategic trading.”
Why is it “strategy” rather than “prediction”?
You cannot read the market ahead perfectly all the time.
That’s precisely why,
“It should rise.”
“It should fall.”
instead of relying on a single forecast,
it is important to consider multiple possible developments.
In some ways, this is similar to Go or Shogi.
If the opponent does this, I will respond like this.
If it goes further like this, next I will do this.
Even in FX,not only trying to predict price movements,
but also thinking about how to respond to price movementsis what you should plan.
?Video explanation is here