From the Eyes to Epiphany? Understand the essence of FX魅力: What is the psychology behind a triple top forming? ~ [Iida-tchi Sensei]

Profile of Iidacchi Sensei

Former instructor at a preparatory school. Loves hot springs and holds a Hot Spring Sommelier certification; a professional FX trader. Using the method called "Close Price Trading Method," he has trained many excellent traders, and his online study group attracts a wide range of participants from all over the country, from the elderly to the young. The chart analysis method that emphasizes the “close price” is popular among part-time traders as a trading approach that does not require constant focus on 24-hour markets.

Blog:The Big Comeback from 100,000 yen! FX Trader Iidatchi BLOG

Twitter:https://twitter.com/iidatchi

※This article is a reprint/edit of an article from FX攻略.com October 2020 issue. Please note that the market information written in the main text differs from the current market.

What matters is recognizing changes in the environment

Hello, this is Iidacchi Sensei. Last time I explained crowd psychology. After all, no one can absolutely predict the future, and humans will not acquire predictive abilities. It is also impossible to read others’ psychology, and such ability is not required in the world of markets.

What’s important is the “change in psychology.” For example, if you have been positioning according to a risk-on trend and suddenly switch to risk-off, even if you understand crowd psychology, you must act quickly or you will miss profits. Therefore, recognizing the change in the environment is more important than recognizing the current environment.

If you want to know crowd psychology in the market, the following points are enough to know. There is a shared awareness not only in the market world but in all of us: the desire not to incur losses and the desire to gain. In other words, it means wanting to buy low and sell high.