Reasons I Day Trade [Narikazukamizu?].
FX trading styles can be broadly classified into four categories by the duration of holding a position: scalping, day trading, swing trading, and position trading. It is very important to understand in advance which style suits you. From Mr. Noriyuki Mizukami, a writer in the day trading domain, we learn how he settled into his current style and the characteristics of price movement by time of day.
This article is a reprint and revision of an article from FX攻略.com, December 2018 issue. Please note that the market information described in the text may differ from the current market.
Profile of Mr. Noriyuki Mizukami
Mizukami Noriyuki. Representative of Burner Market Focus. Born in 1978. After graduating from Sophia University with a degree in economics, he joined Sanwa Bank (now MUFG Bank). After five years in branch operations, he worked as a currency dealer in London, Tokyo, and New York. Known in the Tokyo Foreign Exchange market as “Mizukami of Sanwa.” He served as Head of Foreign Exchange at Dresdner Bank. From 1996, at RBS Bank, he became Head of Foreign Exchange and later Head of the Foreign Exchange Sales Department. Since 2007, he has been the representative of Burner Market Focus. He is reputed for high-precision market forecasts based on long years of experience and knowledge.
When you spot a good rate, focus on taking profits immediately
I used to be a trader who chased long-term trends, labeled as a risk-taker. I held very large positions, sometimes maintaining them for a month or two. Of course, I had experiences of making big profits with long-term trading, but holding those positions caused a lot of stress.
Even in an uptrend, the market does not move in a straight line. It goes up and down, then goes higher again. While holding a long position, there was no guarantee that the pullback would end where I expected, and inwardly I was nervous and exhausted, even if I could take profits.
At that time, I spoke with a sharp-witted fellow trader friend about it. He said, “If you do that, it’s no good. It only wears you out. I love taking profits, so I keep taking profits, and if the market moves further, I’ll re-enter.” That truly opened my eyes.
From then on, I radically changed direction and started day trading. My current approach is to take profits immediately as soon as I see a “good rate!” This really prevents fatigue. So why not scalping? There isn’t a deep reason. I’m simply more accustomed to a longer-term market perspective, so day trading suits me better.
Even so, there are times when I don’t go as far as scalping, but I still buy and sell repeatedly in a short period, and I do hold positions overnight with some frequency. It’s not just about limiting time; if I see a “good rate!” I stop at any time. Also, I’ve internalized the intraday time-of-day characteristics and trade accordingly, which I think suits day trading.
