Trading strategy to turn a right-shoulder-downward trade into a right-shoulder-upward trade

To make a living from FX, you must trade with a consistently rising performance

However, in reality, even though you should have chosen a good trading logic with a rising track record

what awaited in reality was a falling track record

Does that ever happen to you?

It happened to me. A lot, and forever

but

I was able to put an end to that kind of trading as well

A declining-trend trade is

in essence a trading strategy that turns negative as a result of repeating increases and decreases

that was what it was

So you should reverse this strategy

It doesn’t mean to trade in the exact opposite way

What you need to do is quite simple: adopt a trading strategy that can produce results after a sequence of gains and losses

Some people think, “I’m doing that, but the results aren’t there, so I’m troubled!”

but basically a strategy for increasing capital in trading is about “reconfirmation”

There are parts where people tend to give up in these aspects

So, although I know some of this content,

it’s quite simple, so if you internalize it well, your trading strategy should yield better results

ーー

First, what causes a decline?

Why would a rising-trend trade become a decline

simply because you’re trading in a similar way to systematic trading or automated trading

In other words, “entering everything indiscriminately”

Rather than waiting and watching, you need to have an eye for gauging market sentiment

Market sentiment may be appropriate to say it is arbitrary, but

behind arbitrary there is always a temporal allocation

which means cultivating market sentiment on multiple timeframes

Market sentiment on multiple timeframes includes short-term, mid-term, and long-term

Short-term = entry timeframe

Short-term is the benchmark value

The benchmark value is the timeframe used in trading in the market

Long-term is used less often

In normal market conditions, short-term and mid-term are usually enough

However, when the market creates noise, the concepts of mid-term and long-term become important

In such a time, if the market is in a slump or confusion, the idea of taking a break becomes appropriate, right?

Basically, the market must be approached with mental considerations about whether to trade or take a break, otherwise capital increases are hard to achieve

Everyone loses sight of the important values with such simple trades, so capital cannot increase as a result

The essence of mental trading is not deciding to buy or sell

The essence of mental trading is deciding whether to trade or rest

This difference in perception makes market profits easier or harder

Market profits vary the most when market conditions are harsh

The trading logic isn’t that important

Rather, the parts that lead to profit, such as trading and resting, are what are focused on

The focal points are always in the behind-the-scenes aspects

More important than the trading timeframes is the next step, and such behind-the-scenes concepts should be held

To produce results on the surface, there must be an underlying mechanism behind the scenes

I investigated the mechanical causes, but

this time it’s the opposite

Aren’t you trading too emotionally?

Even those who deny it often engage in emotionally charged trades

This market condition includes aspects like ～

The market also needs rest; you won’t make profits unless you actively face it, but

that profit zone is a double-edged thing

A double-edged situation is full of flaws, so you should eliminate those flawed parts

That is what we call an emotional-trade in this context

Market awareness refers to the surface movements—the entry timeframe—and the behind-the-scenes mechanisms—the mid-term and long-term timeframes

In an emotional-trade, even movements that aren’t very active can be interpreted as

“Mid- and long-term have expectations in this direction” and then you trade as buying pressure or selling pressure

As a result, you end up increasing unnecessary losses

Always aim for the moment when the starting position just peeks out of the head

Around the second step of the staircase, roughly

You aim from the start; forecasts before the trade has even begun are unreliable

That market tends to end up moving within a range

Simply, you see it as either a big box range or a small box range

To profit in trading, the market tends to move outside the box

Rather than “market sentiment for a trending market,” the more important consideration is “where within the box is the upper or lower bound”

Emotional-trade tends to be driven by the value of a trending-market mindset

Because

“I should aim for a trending market”

The result differs from the pursued answer, causing mental strain

You tend to get caught in noise

Checking the positions of the box’s upper and lower bounds

Always consider and apply the behind-the-scenes mechanism

The market, through such mechanisms and their combinations, surprisingly contributes to capital increases

In market capital increase approaches, the number of small realizations you can gain matters

By that, profits differ in a striking way