Closing up is difficult (2)
A retail investor often tries to capture price movements in many different patterns, but you should realize that the range you can handle alone is surprisingly narrow.
Don’t overexert yourself, make compromises... you can borrow the power of these words.
In extreme terms, the royal road of trading is to choose just one method from 100 and execute it. Inevitably, the remaining 99 must, unfortunately, be discarded.
People who are skilled at taking advantage of recurring movements by contrarian trading can steadily accumulate profits within the expected box-range price action.
But when the market starts moving strongly, changing your method suddenly to chase volatile price action is not easy to do.
It is wise to perceive that “the movement has changed” or “this market is no longer favorable to my strengths,” and to step back.
When prices rise and you short-sell thinking “it will hit the ceiling again,” and then you face stronger-than-expected price moves... If you have to press on (stop out the short), bring the position to zero and take a break — this is what it means to stay true to your own method.
Conversely, those who aim for large fluctuations watch the movement and observe things like “will it break out from here?” and may choose to pass or to enter and cut losses after exiting; by repeating this, you accumulate small losses and, when the timing is right, ride a big price move to recover (net positive).
There are also people who skillfully juggle multiple methods simultaneously, but not everyone can imitate this.
It might be possible, but working on the premise “I am not skilled” and occasionally making a small stretch is the right path to explore for progress.
Even with big dreams, keep your actions realistic and cautious—that is how professionals behave and how individual investors should progress safely.
I mentioned that you choose only one from 100 methods.
Lin Investment Research Institute’s original market observation system“Chugen-sen”What kind of “one” are you choosing, what are you discarding, in other words, what kind of movement does the method anticipate?
“Even the traditionally daunting issue of closing out positions is governed.”
『New Edition of the Chugen-sen Settlement Method』In its “Part II: the Main Text,” it explains as described above.
Regulations and considerations about closing out are so underdeveloped in common investment information that it makes you feel smug just by knowing them.
“Enter here” and finish with only the entry being mentioned is a typical deficiency. The closing out, which should accompany the entry, is missing. .
The structure that is full of excitement without addressing practical realities is what sells best, i.e., has the highest commercial value, but it is incomplete for trading. It can even be called “malicious information” that causes misunderstandings.
While there is no need to disparage, I cannot say it is truly valuable information.
When traveling abroad, you would be surprised if someone told you the ticket is one-way.
A climbing plan inevitably includes the descent route.
An airplane can take off only because there is a place to land.
It is extremely obvious, yet there are a lot of forecasting methods and information that only talk about entry points... isn’t that a problem!
In contrast,Chugen-senhonestly regards trading and asset management as ways to grow cash through buying and selling.
Therefore, it defines closing out and even prescribes quick responses when a position turns out to be mistaken. As a result, it is practical.
■ Stock Investment [Tiger’s Den] (Lin Investment Research Institute Channel)
On Wednesday, March 9, we uploaded the latest video.
Fundamental knowledge and basic techniques for making profits
【A Painful Truth】 When your stock holdings crash, you keep biting your nails
A stock you bought with expectations goes weak. It then falls further and you feel it’s bad, but you can’t cut losses, so you end up leaving it as is...
Since you take on risk to build a position, you cannot avoid misjudgments. The mistakes in handling such situations are also common in the market.
Having explained the causes, I considered measures that anyone can practice.
■ YouTube Channel Market Scramble
Tonight, the latest video from Market Scramble will also be released.
Please watch at the URL below. Enjoy!!
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