The Cause and Prescription for a Habit of Losing in Investing ｜ Episode 2 [Sweet Trader]

In FX, mental state greatly influences the outcome of trades. Since only a small percentage of traders are able to keep winning, it can be said that many traders have a mindset that prevents them from winning. Here, a sweet trader shares how to improve your mental state through thorough self-analysis.

*This article is a reprint/edit of articles from FX攻略.com December 2019 issue. Please note that the market information written in the body may differ from the current market.

Sweet Trader Profile

A former major three-fecurities firm currency trader who loves sweets. Began investing in college, and after twice blowing through his savings in FX, made a comeback. Since then he has worked in MBS investment at a bank, and in FX spot, forward, and options trading at a securities company, and later worked as a trader at a cryptocurrency exchange.

Blog：https://bitcoin-currenciesblog.com/
Twitter：https://twitter.com/sweetstrader3

Start by trading on a feel

Investment beginners often start their investment life without recognizing the importance of mental control. Since the previous section described the traits of losers, next you should perform your own medical interview (self-check). This step is one of the important points, so please don’t do it carelessly. “Face yourself without running away” is the most important thing.

First, try trading by feel. For those who read the previous section, you might think, “Isn’t this something you should absolutely not do?” Of course, that’s correct. This is meant as a self-check. The method is very simple. You can look at the market, or imitate investment methods circulating on Twitter, so just buy and sell in whatever direction you feel will win, as much as you can. Do it by your intuition.

What’s important is to write down what you thought at the moment you entered the trade. Record the emotional swings as the market moves (while prices move, how do you feel about gains or losses?). The most important part is understanding your emotions when you’re losing. Humans instinctively dislike losing, so you have to learn to live with losses. FX profits come from the possibility of loss; there cannot always be profit.