Yuchelle's Trade Fitness Gym｜11th How to Prevent Unrealized Losses

YouCiel’s Profile

A rising “Muscle Trader” on YouTube. Known for his technical analysis of EURUSD, with subscriber growth skyrocketing. Catchphrase: “Trading is more about the physique than the mental.”

Twitter：https://twitter.com/EURUSDsenmon

※This article is a republication/re-edit of FX攻略.com March 2021 issue. Please note that the market information written here may differ from current market conditions.

Greatness lies in the details: devise an incredibly precise entry method!

Yo! I’m YouCiel. Today I’ll talk about how to improve entry timing down to the second. This will thoroughly prevent unrealized losses.

When you enter, which timeframe do you look at? One-hour for day traders? Four-hour for swing traders? One-minute for scalpers? It varies by trading style, right? It’s odd that we’re looking at different timeframes on the same chart.

What I want you to consider here is: which trading style cannot tolerate any unrealized losses at all? And the answer is clearly scalping!

Everyone dislikes unrealized losses, but compared to swing or day trading that aim for wide moves, scalping targets tighter ranges, so the tolerance for unrealized losses is naturally lower.

Conversely, the trading style with the highest tolerance for unrealized losses is swing trading. Since the goal is to ride large trends, you need to set a wide tolerance for unrealized losses.

If you list the pros and cons of these trading styles: scalping can yield many entries if you catch the point, but the profit per trade is small. Swing trading can target large moves, but profits may take longer to materialize. Day trading sits in between.

Each trading style has its strengths and weaknesses, but what I want everyone in the “Team YouCiel,” who loves this column, to consider is…