Twitter followers exceed 10,000; Investment Navi+ membership numbers are booming!! The buzz-worthy trader Erette — what exactly is he/she?!
Currently, the trader Ere, known for her popular column "Daily Reports Based on Line Trading and Fundamentals Analysis" serialized on Gogojan's Investment Navi+, has been drawing attention. Since July this year (2020), the series has been growing in readership with each article posted.
The reason for her popularity among many users is that you can hear it directly from Ere herself this time; from her views on trading to her methods, I want to ask thoroughly. If you're troubled by FX trading, please read to the end.
- Surviving the early days of FX
- Gaining economic knowledge through work
- Ere's trading method revealed
- Benefits of outputting
- How to use Ere Report
Surviving the early days of FX
Nice to meet you today. Looking at your profile, you are described as a "part-time trader with 16 years of investing experience." Up to now, could you walk us through your journey?
I started trading in my early 20s, but in truth at first I felt, "There’s something more interesting than pachinko!"
Back then, you could trade with leverage up to 200x domestically, and there were headlines about housewives evading taxes with FX.
Indeed, looking back, the early 2000s before the Financial Services Agency's regulatory reforms were quite risky. By the way, you started investing with FX, right?
Yes. So back then I traded almost like gambling, alternating between wins and losses.
Moreover, there wasn't much information available for study. The web wasn't as developed as now, and there weren't many books either. By the way, there were many scam-like products as well…
Compared to now, it's no exaggeration to say I weathered an era that felt like the end of the century.
That said, I was busy with work and did it as a bit of extra pocket money, so for about six years I didn't make big profits.
Gaining economic knowledge through work
Nowadays you’re earning stable profits with line trading, but how did you get there? If there was a turning point that made you start winning, please tell us.
I’ve done a wide range from technical to fundamental, but there was a period when I had to study interest rates for work, and I think that was a big turning point.
I work in advertising. It might be surprising, but this industry is difficult unless you're sensitive to the economy.
Working in that environment for ten years deepened my knowledge and brought in various information, which led me to take investing seriously.
In my main job I had gained a decent amount of fundamentals, so in the first year I mainly studied technicals.
Yes. At first I really didn't know what to do, so I started with, like, what happens when the moving average crosses (Golden Cross/Death Cross), RSI’s overbought/oversold levels, and then Elliott Wave, Pivot, OBV—whatever caught my eye, I adopted one after another.
By the way, there was a period when I got hooked on oscillators too. But as you can see in my articles, now I don’t use any oscillator on the chart.
Ultimately, because I was able to follow global economic trends as part of my work, I realized that drawing lines such as horizontal lines on the chart and analyzing from there would lead to more stable results overall.
Of course, it was tough until then. I tried many methods and discarded them; I even removed the risky ones from my trading history and kept only the winning ones. But in terms of profits, it was roughly break-even…
Ere’s Trading Method Revealed
A bold request, but could you explain that method in a bit more detail?
First, following the big direction with fundamentals is important. Without this, you either hold or you don't. Especially in situations where you can make large gains, lacking this conviction will affect future profits.
Also, draw horizontal lines at the price levels you are watching, then predict a break or reversal from there.
And compute the risk-reward from the entry price to the target price, and enter at a timing with high expected value.
I see—it's a very simple and efficient method. I looked at your reports as well, and it’s a mid-to-long-term style that targets daily-level trends.
Yes. Also, it’s important to understand what happened when the price touched the drawn line. For example, if the price breaks that line, the news backing it must be bigger than the previous one; conversely, if not, there’s a higher chance it will bounce back, and judgments about information quality are necessary too.
Even though the technical method is simple, the fundamental judgment is the key. If you can grasp the macro economic environment, you can enter with confidence.
However, in my case I’ve always followed the news due to my job, and I’ve always been more interested in the economy itself. I also happen to be a military enthusiast, so I enjoy markets where decisions can be made from a military-strategy perspective. In that regard, the Trump era was easy to trade.
Imitating the method won’t instantly give you that perspective. It’s no wonder Ere’s reports are popular.
Merits of Output
By the way, what sparked you to publish these reports?
At first I posted daily trading results on Twitter. Then the number of people asking me to teach trading increased.
Because I used to teach various people due to my job, I was teaching many people.
Then Gogojan invited me to write reports. But honestly, a large part of the reports I write on Gogojan are also for my own output.
Is outputting important after all?
Yes. Writing reports significantly improved my trading accuracy. I had never written so much seriously about my own trades every day, so at first it was tough, but now I think it’s a very good forum for output.
Trading is about preparation. For example, looking at charts alone can reveal many possibilities. But unless you think through the flow and scenarios that lead to that price, you might enter by guesswork or fail to handle the unexpected.
However, by outputting, you can wait for opportunities, and even if your imagined scenario collapses, you can stay calm and respond accordingly.
In fact, in November I didn’t trade that often, but I still managed to profit thanks to that.
Using Ere Reports
Reports written by traders who are actually profitable are valuable in themselves, but I think there are people for whom they are effective and others for whom they are not.
From your perspective, who do you think can use them effectively?
To be honest, I don’t think about it in those terms. It’s the same story as before—my output space is primarily for my own benefit, which is the fundamental premise….
However, from the questions I’ve seen, beginners tend to grow faster.
As you gain more experience, you develop trading habits, after all.
But I think that once you have a certain level of analytical ability, anyone can draw the same lines for line trading. Those aspects don’t leave much room for idiosyncrasies. However, the main stream remains fundamentally oriented, so I wouldn’t recommend it to people who overweight technicals.
Please don’t ever try to emulate such people (lol).
Line trading doesn’t usually stop exactly at the drawn lines; it often slightly overlaps or breaks through. Still, in many cases it tends to proceed along the scenarios you anticipated with fundamentals.
So, unless you can manage some risk and tolerate a bit of exposure, mastering it may be challenging.
I see—people who prefer a more relaxed trading style would likely find it quite usable.
