February 13 (Mon): Nikkei 225 (Free viewing item: Fusain Harken)
Good morning⛅
Are you all familiar with Mr. Husain Harnka? (Hu-Sine Harun-ka)
He is one of the characters in my favorite book, "The Little Goblins of FX."
This person's trading isEnd when you gain 10 pips in a day!
Such trading made him a billionaire.
And there was a past when I also dreamed of and aimed for such trading.
Yes, when I became a full-time trader!
During my part-time days I could earn profits exceeding my annual income with swing trades.
If I were full-time with far more time than in the part-time days, wouldn’t I be able to earn even more?
Could I also do day trading?
Thinking that, I tried to aim for 10 pips a day following Mr. Husain Harnka.
Well, the results were disastrous??
Swing trading worked well, but when it came to day trading
it was a repetitive cycle of profit and loss…?
There was no sign that capital would grow…?
When trading time is shortened or reduced, spreads and slippage constitute a very large proportion.
To take a 10-pip profit
depending on the instrument, even 1 pip of spread or slippage could
start at a loss of one-tenth of the target profit.
If you aim for small losses and big profits,
you must keep the stop loss at or below 10 pips while targeting 10 pips of profit.
If there is even 1 pip of spread or slippage, to take 10 pips you would need 11 pips of movement.
Setting risk-reward to 2:1,
From entry
11 pips toward take profit
4 pips toward the adverse direction
…
…
…
Yes, it gets cut off quickly, you know?
Well, perhaps I was immature at the time, but I couldn’t sense any bright future from here…?
Therefore I abandoned this trade.
Risk is'Market Conditions'If you properly manage it based on the market conditions and then look at the profits, that would be fine, but
I do not at all recommend simply setting a fixed profit target like 〇〇 pips! ????♂️
You may have noticed, but above
11 pips toward take profit
4 pips toward the adverse direction
This is entirely'Self-Preference'an improper setting method, so please do not imitate it ????♂️
That’s probably why you couldn’t make money… what about profit fixed at 10 pips…?
If you rashly decide on a fixed profit like 〇〇 pips and you’re not currently continuing to profit
you may need to reconsider your mindsetThere is a possibility.
Please take some time to thoroughly review your own trading!
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