March 15 (Wednesday): Nikkei 225 (Lecture: Do you look at pips or the amount?)
Good morning ☀
Following the collapse of Silicon Valley Bank, news has emerged that NY Signature Bank has also gone bankrupt, hasn't it??
With more bad news continuing, could it accelerate a major crash in the future?
Although I don't base my trading on fundamentals, I still feel that news supporting my main direction is all priced into the charts, once again reinforcing that belief.
Now, when you trade,
are you looking at the amount? are you looking at pips?
Which one is correct?
This is not about which is right; I hope you take it as a reference.
First, as my answer
look at pips!
.
However,look at pips!does not mean ignoring the amount.
When deciding Lot size and other money-management, you inevitably have to look at the amount.
Because total assets are 〇〇〇万円, I set stop-loss within 2%...
If the price range to stop loss is △△ pips, the Lot becomes □□.
So, the amount is involved.
Therefore, at this stage, I look at the amount.
Are you looking at the amount? Are you looking at pips?
This is actually after making the entry.
When you look at unrealized profit or loss in pips, even from when you were a beginner with little total assets,
even as total assets increase because you became capable of earning,
you can trade with the same situation and environment and focus on trading!
For example, suppose you traded with 10,000 units as a beginner.
With 100 pips unrealized profit, that's an unrealized profit of 10,000 yen.
But with 1,000,000 units and 100 pips unrealized profit, that's an unrealized profit of 1,000,000 yen.
When you have 10,000 units, there is still room to grow your profits,
but if you start looking at the amount, problems begin to arise.
With 1,000,000 units,unrealized profit of 1,000,000 yenif you start looking at the nominal amount
wouldn't you feel like taking profits?
I would want to take profits, haha
That hasn’t changed to this day.
If you look at the unrealized profit of 〇〇〇万円 as the amount...
Oh, maybe I should just take profits?
That chicken-profit or devil’s whisper that says “I think I’ll take profits?” can be heard?
If I could take profits of 〇〇〇万円, wouldn’t that be good?
Some people say that… but that’s not good
If you do that, you will surely
break the basic principle of investment called “risk-reward.”
Before entry, firmly adhere to your predetermined T/P and S/L.
Of course, if the situation changes in a way that increases the possibility of reversals, you may take profits to secure gains, but,looking only at the amount and thinking “oh well!”
is something you should never do.
That’s why I only look at pips during trades.
How much unrealized profit...
Well, you can imagine it by looking at the pips, but,
still, I avoid seeing the exactdisplay of 〇〇〇万円on the screen.
（Note: Members only from here on.)
