Shoujou Kō no Jōshō Izumu ~rosukatto wa doko de shitara ii no?~

Hello everyone. I’m Akiko Shiro, the Sparkling Chartist.

How are you spending the first day of this three-day weekend?

Before I knew it, November has arrived. I always say every year that the year goes by in a flash (;^ω^)

Only two months left in 2019!! Let’s make sure we don’t have any regrets in trading!!

Today, I will also bring you a video answering your questions.

This time, I answered the question, “Where should I set the loss cut?”

Loss cutting is a perpetual theme, isn’t it? I want to avoid a vicious cycle of “can’t cut losses → salt position → neglect.”

One common trait I’ve seen among successful individual investors is that they all cut losses well.

It’s easy to get caught up in the desire to take profits, but if you also focus on reducing losses, your trading results may improve!

I would be happy if this could help create a virtuous cycle where you can cut losses → improve capital efficiency → improve investment performance.

Sorry for the long preface, but I’d like to answer your questions right away.

Generally, when I realize I entered incorrectly, I immediately cut losses.

For example, when is that?

If you’re looking at a 5-minute chart and the gradient is yellow, but within those five minutes it changes from yellow to orange.

In such cases you withdraw within that five minutes.

Also, if you thought it would rise but MACD crosses dead or the movement differs from what you expected, you cut losses.

If you entered because you thought it would break the previous high but the upside is heavy and can’t break it, that’s the same situation.

If you bought thinking it would go up and it goes down, that’s proof your entry was wrong.

In such times, I also cut losses at the purchase price.

Above all, I strictly “cut the damage while it’s shallow.”

If the damage is shallow, your next entry goes smoothly, and the time you spend praying for a rise can be used effectively.

In this video, using the Kirameki Chart, I explain in detail when I cut losses.

Please take a look.

I post daily trades on my blog.

Blog here → https://ameblo.jp/bikabubikabu/

Then, please have a wonderful holiday.