Junichi's Scalping Classroom | Episode 4: Build Your Own Personal Scalping Style Part 2 [Junichi FX]

Junichi FX's Profile

Junichi FX. AFX scalping trader, FX mental adviser, FX coaching, financial planner, insurance agency, management consultant, and more—a multifaceted professional. Trading with a goal of 1000 pips per month through scalping centered on price action.

Twitter:https://twitter.com/junichi_fx

※This article is a reprint/edit of FX攻略.com January 2019 issue. Please note that the market information written here may differ from current market conditions.

In the third installment, I talked about the basics that form the foundation of building a scalping style. This time, I would like to describe tips and methods for analyzing oneself, which are important when constructing a style.

The Importance of Self-Analysis

In FX, not only scalping, one's own personality and mental state greatly influence results, so it is necessary to consider these when developing a style and rules. For those with some FX experience, looking back on past trades often reveals failures caused by psychological factors rather than method or technical issues, right?

For example, “I should have held my position according to the rules, but couldn’t,” or “after a string of losses I became stubborn and widened the wound”… such psychological issues vary by individual, but through self-analysis you can clearly recognize situations you are weak in and conduct restrained trading, which directly leads to performance.

Why Copy Trading Isn’t Working

When you first start FX or when the market isn’t going well, many people try copy trading by looking at traders who keep winning on SNS or blogs, thinking “I’ll imitate them.” Many experience ending up in the red despite trying to copy. This is because even if the source trader’s trades were truly profitable, factors outside the position such as entry context and background information are unclear or ambiguous, causing timing mismatches and different exit decisions. Differences in your own market view, methods, environment, and outcomes create a heavier psychological burden than usual. The reason copy trading doesn’t work is the difference in environment and “mentality.”