"Analytical ability" and "?? power"

Two “powers” are required for trading.

And many people only look at one.

That one is“Analytical Ability”.

A common misunderstanding among many is

If you could pinpoint the exact reversal point every time, you could win, right!

This kind of thinking.

Indeed, if you knew every reversal point, you might think you could earn profits without enduring prolonged drawdowns or large losses.

And if you apply leverage to increase your lot size… you could become a billionaire!!!

…。

…。

…。

If you could know every reversal point…

Do you know anyone who actually understands future price movements that well??

No one, right??

Because no one can know, after all?

Then“Analytical Ability”—what is it actually?

There are countless methods of analysis, so I can't write them all, but

・Develop environmental awareness

・Make a scenario

This is roughly how it should be.

What about higher timeframes?

In Dow Theory terms, is it a rising trend that is making higher highs and higher lows?

What do indicators suggest about price movement?

I think everyone has reached this point.

And…

Currently, are you earning stably?

If you are earning, you might also have the other ‘power’ as well?

Please keep going as you are ( ・ㅂ・)و ク゛ッ !

If you are not earning stably…you may be focusing only on “Analytical Ability”?

Then what is the other ‘power’…“Executive Power”.

・If you actually analyzed and moved, can you execute exactly as planned?

The ability to take action!

This is something many people struggle with.

Of course it is expected to be difficult.

For example…? is the daily chart of the Nikkei 225. It’s from the COVID crash.

In such a sharp drop, can you buy around the white circle zone?

Sharp drops like this don’t occur all the time, but

most people, even when a large bullish or bearish candle appears on the 1-hour or 4-hour chart, decide to trade but then fear the downward or upward momentum and stop themselves there?

・Is it really okay to buy?

・Will the trend continue?

・If you enter, will it immediately move against you?

This isthe immaturity of “Executive Power”.

“Analytical Ability”—I just said earlier that even if you refine it, you cannot predict the exact reversal 100%.

Considering that,“Executive Power”—can you properly carry it out?

Most ordinary people probably cannot.

Then“Analytical Ability”—refining it to predict reversal points more accurately…

is something many do; in fact, those who aren’t earning tend to fall into this negative thinking loop.

Therefore“Analytical Ability”becomes a complete study method, andthey tend to chase the “Holy Grail.”

※A concrete discussion on how to break free from this mindset requires more introduction, so I’ll write about it later?
Today I hope you understand corrections to misconceptions and how to proceed with study.

If you understand that these two powers are necessary, you won’t just try to develop only “Analytical Ability.”

If possibleyou would want to develop both “Analytical Ability” and “Executive Power.”.

I was extreme, but as a total amateurI happened to focus only onthe“Executive Power.”

Later I started studying moving averages and MACD, and began trying to strengthen “Analytical Ability,” which led me toward the aforementionednegative thinking, but…

So what is the practice to strengthen executive power? Here are a few examples

① Systemize your own concrete trading method

② Practice trading using tools like ForexTester

③ Practice on a demo account

④ Practice with low lots (one currency or ten currencies is fine) with real money

and do it in order.

When I spoke about this in the salon, I received many surprised replies ??

“That won’t make me any money at all!!!”

No no…?

You all came full of motivation to make money and you have been losing money in your trading lives up to now, right?

Why do you immediately look at “profit”?

I also talked about this in my funds management blog, you know lol

Professionals manage “losses”!?

Trading life is the same.

Let’s manage the “losses.”We should!

Even though I have experienced that the world won’t let you earn without a foundation
Such statements show you’re underestimating trading?‍♂️

This time I covered the framework.

My writing skills are poor, so some things may be hard to understand.

But someday the dots will connect into a line.

Thatwill be an “insight.”andan “eye-opening” moment.???

Some people get them early; others later.

Surely those who aren’t stable in earnings yet have a mind full of scattered points.

Bit by bit, the points connect and the lines grow.

And graduallythe “insight”increases, and as a result, a path opens.

But unfortunately“Not everyone is rewarded if you simply work hard”

“Let’s keep working until we’re rewarded!”

In such cases, use psychology.

Use the “wasteful psychology” lol

It would be a waste to give up after all your efforts up to now!

For those who haven’t worked hard until now, it might be wise to wash your hands of investing before you suffer big losses.

To friends who tell me they want to start investing now, I give them the same reply every time.

“If you cannot make substantial efforts, you should quit now.”.

That concludes this for now.
Thank you for reading until the end. m(_ _"m)

※I’m always grateful for the kind words you share.
Thank you very much.
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