Buy orders can only be placed with a perfect order

Author: Momoko Goto
Housewife trader active
Investment history spans five and a half years including stock trading; 27-year-old mother

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Another week begins. As for my recent trading, although the number of trades has decreased quite a bit, I feel that the 'quality' has improved. Of course there are times when moves go against expectations and I cut losses, but I think I’m placing much more care and affection into each trade than a year ago. Truly a daily training. I will continue to do my best.




Aside from such trivialities for everyone, in my columns, blogs, and support groups I feel there are many people who constantly encounter talks about the mental aspect. At one point the fx-on column editor asked me to talk more about metode, butUltimately, the traders who win, who survive in the market, are those whose mental strength level is sufficiently high, I think. For me, even if I take profits after a loss, emotions don’t move much. But even a small loss makes me think, “I want to recover quickly!” or I feel down, and getting excited or depressed over wins doesn’t help. In the end, those who can continue are those with strong curiosity, clear goals, and the mindset to retry; those who can’t continue lack the mental strength to overcome the walls in front of them, and those people tend to[Even if you imitate the winning person's method, you end up back at the original position or start with a negative outcome].So I always share a lot about the mental aspect. This isn’t me boasting; there are reasons based on my past experiences of losing many times and hitting rock bottom after losing large sums of money.

【Buy orders are placed only with a perfect order】

 
This is the current 8-hour chart of USD/JPY.
As my trading style mainly targets selling opportunities, I often wait for buying opportunities, though I do enter long positions occasionally.When that happens, it’s a perfect order indicating an upward tilt of the multi-timeframe polarity, the Ichimoku Kinko Hyo’s rising line, and above all, the perfect order of EMA moving averages.

This is a market where the short-term strength is greater than the long-term average, so the ideal is when the long-term line is at the bottom and the short-term line at the top—that is called a perfect order. In other words, placing orders at the points marked by the red circles is ideal. If I miss this signal, I do not enter. Even if I expect it to rise further, I do not participate in mid-entry. In my case, I buy when the perfect order is about to complete or when the medium-term EMA crosses the long-term EMA and market sentiment is improving.Other times, for example when I mark with blue circles, there are buy opportunities that could be profitable, but I still do not enter reliably.

The reason is that although the EMA is turning upward, entering on a mere retrace movement is hard to quantify when it will quickly reverse, and the stop-loss risk is very high (a drop if there’s disappointment selling), so I proceed with buying more cautiously than selling.


From my experience, it’s not when the market is turning expectations to “It will go up soon!” but when the market starts to feel uneasy, like “Isn’t it about to drop? Is it scary to buy here?” that selling entries can capture profits quickly in a short period. That’s my personal reason as well.



Thank you again for reading and see you next time.