Eight iron rules to make the Crab Trader-style FX a pillar of income | Rule 5: Small losses, moderate profits are fine

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Kani Trader. On YouTube Live, he shares trades daily and has progressed from 3,000,000 to 10,000,000 yen. In 2019 as well, every day from 22:45 he did face-showing live commentary. He streams under the themes of “Helping viewers win” and “Healthy FX channel.”

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※This article is a reprint/edit of an article from FX Attack.com, August 2020 issue. Please note that the market information stated in the main text may differ from current market conditions.

There is nothing you can do after a bad entry

FX trading is a one-set process from making a “new entry” position to either taking profits or stopping losses as the settlement.

Among these three options, which do you think is the most important? There are various ways of thinking, but I believe new entries are by far the most important.

If you make a good entry, profits rise and losses decrease. Conversely, a bad entry leads to trades that are hard to win and prone to losing.

Moreover, a good entry means faithfully implementing a method that, in backtesting, has a high statistical expectation of increasing money.

Profit-taking and stop-losses in trading are simply announcements of outcomes. If the entry is correct, you can take profits; if the entry is incorrect, it becomes a stop-loss.

For example, suppose an investor makes a very bad timing entry. Even if that person is replaced by the world’s best pro trader, there is little that can be done. At best, you just aim to stop losses before the wound widens too much. This shows how important entry precision is in trading.