“Everything becomes FX” Weekly Trade Vol.042 that I can’t tell anyone
This "Investment Navigator Plus" is a report delivered every Sunday by “Everything becomes FX,” which contemplates money management.
I would like to share not only FX market matters but also the actual weekly positions I hold with a limited audience.
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▼Table of contents
―1. Recent situation
―2. Weekly trades you can’t tell anyone about
―3. Positions for next week
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【PR】Turn losses in FX into gains by using money management
Trading methods that emphasize “money management,” which are often neglected in FX.
You can trade without being swayed by win rates or methods.
▼1. Recent situation
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“Everything becomes FX” moves between domestic and international locations about half of each month. I would like to inform you which city I am in now, what I am seeing, and who I am meeting and working with domestically.
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This week I am in Thailand.
As the middle class in Southeast Asian countries has seen rising incomes, there is growing attention on whitening for women. From their perspective, do Japanese, Taiwanese, and Koreans seem envious?
(Taiwanese people are indeed beautiful, aren’t they)
In the future, there is a strong market expectation for increased spending on whitening products.
Now, “Weekly trades you can’t tell anyone about” are doing well. This week they yielded +495 pips in profit. This means a total profit of +4,510 pips since 2018 began.
If your capital is 100,000 yen, that would be 45,000 yen; if 1,000,000 yen, 450,000 yen. As the profit rate is about 45%, it shows that a reasonable amount of risk is taken (these are financial instruments).
However, when things go well, they will also go poorly. And most FX traders cannot endure periods of poor performance and stop trading.
Therefore, they may not be able to reap profits during subsequent favorable periods and embark on the next quest for a holy grail. If asked, one might complain, “that can’t be used…”
Of course, whether to trade or not is a personal choice, and discarding what one can gain from it is also a personal choice. Still, it feels like a great waste.
One reason trading becomes untenable during bad runs is that “the number of lots bet is too large.” If you get excited when you win and discouraged when you lose, you will become someone who is only driven by gambling psychology and never reach a higher level.
By betting amounts large enough that you are not delighted by wins and do not mind losses, you should approach new thresholds. If you find you cannot grow your margin because compounding isn’t working, I recommend working to increase your capital first.
There is no rule that FX margins must be increased through FX trading. Start by earning seed money, perhaps with a part-time job, and then increase it from there.
The way your margin increases after that is remarkable!
▼2. Weekly trades you can’t tell anyone about
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A strategy that uses proper money management within a portfolio of long and short positions, known as “weekly trades you can’t tell anyone about.”
Since starting in 2012, there has been no yearly loss and total profits exceeding +30,000 pips.
What is the secret to profitability with a 48% win rate? Here we present this week’s trading results.
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・This week’s result: +495 pips
・Total result to date: +37,564 pips (rounded)
【Weekly trade results】
・Win rate: 50.3%
・Average win: +785 pips
・Average loss: -578 pips
・Maximum win: +13,491 pips
・Maximum loss: -2,932 pips
・PF: 1.37
・PR: 1.36
“Weekly trades you can’t tell anyone about” take advantageous positions from the 1-hour, daily, and weekly trends. However, its essence lies more in money management than in trading itself.
The win rate of this method is 50%. Because it feels like about 40% by “perceived probability,” those who cannot endure unless the win rate is over 80% probably cannot implement it. Conversely, it could be informative for those considering long-term profits.
