Learn professional closing techniques from Professor Iidacchi: Settlement theory for surviving in the foreign exchange market | Episode 4: The importance of taking profits and the guideline for profit-taking ranges

Profile of Ito-tachi Sensei

Former teacher at a prep school. He loves hot springs and holds a certified hot spring sommelier qualification. A professional FX trader who trains many excellent traders using the “Close Price Trade Method.” In his online study sessions, participants from all over the country—ranging from the elderly to young people—learn together. The chart analysis method that prioritizes the “close price” is popular among part-time traders as a trading approach that doesn’t require focusing on the 24-hour market.

Blog：The Great Comeback from 100,000 Yen! FX Trader Ito-tachi BLOG

*This article is a reprint and revision of an article published in FX Setting Strategy.com, September 2019. Please note that the market information written in the main text may differ from the current market.

Take Small Stop-Losses and Take Big Profits

Hello, this is Ito-tachi Sensei. This time as well, I will continue to write about theories of settlement (closing positions).

Last time, I disclosed concrete examples of Ito-tachi Sensei’s stop-loss strategies. Ito-tachi Sensei has high entry-point accuracy and can read charts well, so he can sharply discern scenarios when expectations differ from reality. Therefore, when stopping losses, he keeps the negative only to about 20 pips at most. And when taking profits, it’s about 100 pips.

Some people criticize FX as “a coin flip gamble,” but if taking profits is 50 sen and stopping losses is 1 yen, it isn’t even a coin flip gamble. The iron rule of trading is to keep losses small and profits large. Based on this premise, it’s fair to assume there are various pro trader methods. From this issue onward, I plan to write focusing on the theme of “profits.”

Simply predicting rise or fall is not enough

As I’ve said many times before, trading isn’t just about predicting that prices will go up or down. Predicting whether it will go up or down is only about the entry point; trading is complete only when you close the position. Many people are currently overly focused on entry points and have not adequately prepared strategies or scenarios for closing. Trading without a plan is no different from a coin toss gamble. It’s no surprise that FX is said to be won by only 10% of people.