Causes and prescriptions for the habit of losing in investing | Episode 3 [Sweet Trader]

In FX, the mental aspect has a large influence on whether trades win or lose. Since only about a few percent of traders are consistently profitable, it can be said that many traders have a mental state that prevents them from winning. Here, such mental aspects are taught by Sweet Trader to improve through thorough self-analysis.

※This article is a reproduction and revision of an article from FX攻略.com January 2020 issue. Please note that the market information written in the main text may differ from the current market.

Sweet Trader Profile

A former currency trader at a major securities firm who loves sweets. Began investing in college, and after blowing through his savings twice with FX, he made a comeback. Since then, he has worked in MBS investment at a bank, traded foreign exchange spots, forwards, and options at a securities company, and worked as a trader at a cryptocurrency exchange.

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

Let’s figure out what type you are!

Investment beginners tend to start their investment lives without recognizing the importance of mental control... In the previous article, we recommended objectively understanding what kinds of emotions you are prone to when actively trading. This time, we will explain what kind of "medicine" you should give yourself based on those results.

From the previous diagnostic, I think you can categorize which type you are. Understanding yourself is a prerequisite, but just understanding it won’t make FX easy to win. What’s most important is to grasp how your emotions move when you incur losses and to take countermeasures, so here I would like to focus on the loss portion and explain accordingly.

To give the conclusion first: the best medicine is “to create rules and stick to them!” That’s all there is to it♪ Let’s take a closer look at what type you are based on the previous diagnostic results!