Important things in FX trading

I think we should firmly hold that we are using strategic thinking

Because it serves as the potential to respond to whatever market comes

Trades that are 0 or 100

If it’s long-term holding buying in a stock with future prospects, like bottom-fishing, it makes sense, but

In markets like FX, which can be thought of as a so-called “virtual system,”

Trading with only 0 or 100 is very dangerous

Distinguish noise within 0–100

Courageously cut losses

That kind of perspective is necessary, isn’t it

I think you can understand that by looking at past markets

FX has the most liquidity and the most complex market movements

Rather than being complex, it moves in a way that seems “faithful to random”

Actually, it is often embedded in the market

But it also changes, starting later, and various things happen

Understand FX as a market where “there is no absolute” always functioning

FX uses Dow Theory effectively, but it also forms a Dow Theory that switches the range of Dow Theory

Trade according to the Dow Theory you thought

↓

That Dow Theory does not function at all

↓

In later market stages, it formed as the next-foot Dow Theory

and so on

There are also phases like flag patterns that mislead

There are trades with an advantage in FX, but

In reality, there are no trades with a true edge

If there were an edge, everyone would profit

Ultimately, a trade with an edge in FX is

A trading method whose results depend on and are produced by that logic

In reality,

Nampin (averaging down) can be useful for some, and unusable for others

Some are good at following trends, while others are not suited at all

Ultimately, it comes down to individual judgment and analytical thinking

Cut losses, take profits, and keep producing results—turn this into a routine

That is the purpose of taking risks; hence the existence of stop losses

A stop loss is a commitment to cut losses, but it cannot handle sudden moves

Even so, accepting that and incorporating it is one way to manage risk with a stop loss

In reality, you can also trade without taking a stop loss

and take risks by adjusting lot size according to capital

In the end, what we are trying to do is nothing but “increase or decrease”

The market move that brings about that increase or decrease is the “price movement of the market,” right

Therefore timing is important, and

that timing means the risk is smaller if you respond early

As a result, some people have suffered less because they cut losses with stop losses, while others have not recovered because they cut losses too many times

Reasons for using averaging down (nampin) are

Market restoration (the market returning to the state you anticipated)

Reduction of loss

and so on

There is a reason to use averaging down, right?

For that reason, you use averaging down and cut losses for that reason

It’s always a matter of strategy

And the market should not be thought of as just 0 or 100

The market exists between 0 and 100

At those 0–100 stages, you cut losses and take profits while increasing your capital in the market

I don’t know which direction the current market will move

But if you think the market is biased toward selling

then

Hold a short position and a hedged position (short position with a smaller lot size)

If it turns to a selling trend and you think it’s a temporary top, take profits

And then convert the hedged position into a single position and buy with an averaging down approach

Using hedging in this way is also good

Ultimately, the key to FX is to apply logic and trading to the market