Important things in FX trading

I think you should firmly maintain that Denken (strategic thinking) is essential

Because it becomes the potential to "respond" to whatever market conditions come

Trades that are 0 or 100

In cases like long-term holding buys that align with the stock's future value, such as bottom fishing in stocks, it makes sense, but

In markets like FX, which are often described as a "virtual system" market

Trading with a 0 or 100 mindset is extremely dangerous

Identify noise within 0–100

and courageously cut losses

That kind of perspective is necessary

I think you can understand this by looking at past markets

FX has the highest liquidity and the most complex market movements

Rather than complex, they tend to move in a seemingly "random faithfully"

In reality, such movements are often embedded in the market

And they also change over time; sometimes mid-way, and in various ways

Please understand that in FX there is no absolute in the market that always functions

FX has Dow Theory as useful, but it forms a Dow Theory that changes the幅 (range) of Dow Theory

Trade according to the Dow Theory you think

↓

That Dow Theory does not function at all

↓

Later, in the subsequent market, it was formed as the next bar's Dow Theory

such things

There are also deceptive patterns like flag shapes

There are trades with an edge in FX, but

There is actually no trade with a true edge

If there were an edge, everyone would be profitable

So, the edge in FX is

a trading method whose results grow or shrink depending on that logic

In reality

Nampin (averaging down) can be usable, but some people cannot use it effectively

Some are good at simply following trends, while others are not suited at all

In the end, it comes down to individual judgment and analytical thinking

Make losses and take profits, and continue producing results by making it a routine

That requires taking risks; hence the existence of stop losses

A stop loss is a commitment to cut losses, but it cannot respond to sudden movements

Even so, adding stop losses as a way to manage risk is acceptable

In reality, you can trade without stop losses

and take risks by adjusting lot sizes according to your capital

In the end, what we are trying to do is nothing but "increase or decrease"

The market movement, which is the price movement, brings about those increases or decreases

Therefore timing is important

And that timing means acting earlier reduces risk

As a result, some people had smaller losses due to stop losses, while others couldn't recover because too many losses prevented profit

Reasons to use averaging down

Market restoration (the market returning to the level you expected)

Reduction of losses

And so on

Using averaging down is done for a reason, right?

We use averaging down for that reason and cut losses for that reason

It's always a game of give-and-take

And the market should not be considered as 0 or 100

The market exists between 0 and 100

Within that 0–100 range, you cut losses and take profits while increasing capital in the market

I don't know which way the current market will move

But if you think the market trends downward

then

Hold a short position and a hedged position (short with less than half the lot size)

If it turns bearish and you think it's a temporary peak, take profits

Then, if possible, unwind the hedged position to a single short position and buy the dips

Using hedges like this can be good

Ultimately, FX hinges on applying logic and trading strategies to the market

※ If you want to keep earning in FX, go here ↓