Eight Rules to Make Crab Trader-style FX a Key Income Stream | Rule 6: Words for Those Who Cannot Cut Losses

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Crab Trader. He shares daily trades during YouTube live streams, turning 3,000,000 yen into 10,000,000 yen. In 2019 as well, every day from 22:45 he did face-revealing live commentary. The streams are themed around “Helping viewers win” and “A healthy FX channel.”

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※This article is a reprint/re-edit of FX攻略.com’s September 2020 issue. Please note that the market information written here may differ from current market conditions.

Avoid large losses at all costs

We receive many inquiries from people saying, “I can’t cut my losses.” First, why must we cut losses? Because “you must not incur large losses.”

In FX, if you incur a large loss, it becomes difficult to continue trading and you lose learning opportunities.

However, even people who can’t cut losses may see money grow during favorable periods. But this is merely because they kept surviving without cutting losses; at some point, when the market makes a big move, the profits accumulated up to then are wiped out by a major loss.

A recent example is the COVID-19 market from March this year. When such huge fluctuations occur, methods that worked previously often stop working, and if you can’t cut losses properly, you may be forced out of the market. As players come and go, the market continues. Therefore, those who can’t cut losses and survive won’t become the winners.