FX and People | Vol.9 Takami Murai? (村居孝美さん)

Fundamentals, technicals, and various analyses tend to catch the eye, as do automated trading and system trading as methods of operation, but the essence of FX is price movement born from interactions between people. Analyses and trading methods do not move the market. No matter the market, it is driven by countless people. In this feature, we will thoroughly focus on the “people” in FX. The final guest is Takami Mura(i) who is a leading figure in system trading incorporating NLP coaching and serves as the principal of the “Super Trading School REED.” Here, she talks about the differences between discretionary trading and system trading, the merits and demerits of FX, stocks, and futures, and future investor education activities.

Takami Mura(i) Profile

Chairman of the General Incorporated Association Japan Trader Coaching Association, CEO of Excellent Horse, and principal of Super Trading School REED. A pioneer in “NLP Trading,” which teaches modeling methods of top traders at home and abroad based on NLP psychology, as well as an active system trader. She is widely active as a coach who specializes in traders and as a guide to investment methods nationwide. Activities include writing, lecturing, and seminars. Certified Technical Analyst (CMTA) by the NPO Japanese Technical Analysts Association, and master practitioner certified by the U.S. NLP Association.

● Interviewer: Takeshi Shikanai (FX writer)

※This article is a reprint and edited version of an article from FX攻略.com May 2021 issue. Please note that the market information written in the main text may differ from the current market.

If you’re short on time, system trading is recommended

——First, please tell us what system trading is

The term system trading is used with various meanings, and some people equate it with automated trading. In simple terms, it is about creating rules and trading systematically. It is common to entrust executions to a system in system trading. In the past, people used software to screen individual stock picks, watched charts to trade according to rules, or registered the logic in software to delegate trading. Whether you use software or not, I think it can be defined as “mechanically trading according to predetermined rules.”

——I see. Next, between discretionary trading and system trading, which do you think is more advantageous?

Short-term discretionary trading involves paging through the screen, immediately absorbing information, and finding an edge to buy or sell. System trading, on the other hand, does not require being glued to the screen and trades strategically by identifying statistical edges based on past data.

Because these two styles are so different, it is important to judge which fits you rather than which is superior. It is better to choose from the perspective of which suits you more—whether you prefer to act swiftly on recent price movements like in sports, or to plan ahead and create strategies like in shogi.

——In discretionary short-term trading, reflexes and such seem to matter as well.

Indeed. Discretionary short-term trading is not suitable for those who struggle with instant judgments or who find it difficult to place orders quickly due to computer operation. Also, if you are busy with work and cannot stay glued to charts for long periods, your opportunity to obtain information becomes limited, so discretionary short-term trading may be difficult. Since you won’t know when a chance will come unless you stay glued to the charts, system trading is recommended for those who are busy and have little time to devote to FX.

——Besides lack of time, who else is system trading suited for?