Learn professional closing techniques from Professor Iidacchi: Settlement theories to survive in the foreign exchange market | Episode 5: Profit-taking (Final Chapter)
Profile of Dr. Iida-chi
Former lecturer at a preparatory school. Loves hot springs and holds a hot spring sommelier qualification; a professional FX trader. He trains many excellent traders using the method called “Close Price Trading Method,” and in his online study sessions participants from all over the country—from the elderly to the youth—learn together. The chart analysis method that emphasizes the “close price” is popular among part-time traders as a trading approach that does not require focusing on the 24-hour market.
Blog:The Great Comeback from 100,000 Yen! FX Trader Iida-chi BLOG
*This article is a reproduction and re-edit of an article from FX Strategy.com, October 2019. Please note that the market information written in the text may differ from the current market.
For Skilled Traders of Taking Profits and Cutting Losses
Hello, this is Dr. Iida-chi. The decision theory will be the last topic in this issue.
Last time, I disclosed Iida-chi’s specific guidelines for taking profits. For day traders who mainly use the 1-hour chart, it was suggested in the previous issue to use “average daily price range” as a guideline for taking profits. Many people focus only on entry points, but trading is not complete until you exit. People who trade well are not necessarily good at predicting whether prices will go up or down. Those who are good at taking profits or cutting losses are truly skilled traders.
The Importance of Taking Profits Seen in Crypto Frenzy
Everyone participating in the market is inevitably governed by a mindset of “wanting to profit.” When unrealized gains arise, a feeling that “if I stick with it, I’ll earn more” begins to grow. This is a natural feeling that can happen to anyone.
The best example is the 2017 crypto bubble. The term “billionaire” became popular, and some even claimed it would become a new base currency; many boasted strong hands who held on through market drops using long-term holdings called “Gachi-ho.” In hindsight, the outcome was aptly described as “the soldiers’ dreams left behind,” a situation that’s clear in retrospect. Although there are recent signs of revival, rather than boasting about locker-room philosophy with HODL, one should recognize the need for a method to take profits at the right timing.
