Cutting losses is not the right translation, because profits are more important.

This at least does not justify the kumo-zaka-dokan (kotsukotsu-dokan) approach

Taking losses is not a correct translation

Rather, it’s a bit devilish

There are parts where this makes it easier to cut losses,

From recent market conditions, the movements against the waveform are the orthodox trades

Trading is the continuation of treating movements like waves or Dow Theory

So cutting losses tends to put you in a position of loss-accumulation

In a trending market, it’s basically hard to form

At best, markets often bend in the middle

If you look at past markets, you’ll understand

In other words, a real trending market is the most profitable,

Everything else is “noise”

Cutting losses on the noise = unnecessary losses

Indeed, there are times when the market moves into real trends within the noise, but

That happens in the same way for people who are cutting losses

Cutting losses alone isn’t always correct

Rather, constantly cutting losses will quickly erase profits

Especially with trend-following logic, this is the case

Therefore, you should trade only when a trend appears

Return to the N‑shaped trading approach

Loss-cutting can be acceptable with that N-shaped logic

Otherwise, unnecessary losses are large

Loss-cutting ends up causing further losses

You won’t be able to cut losses at the real loss point, so don’t undervalue cutting losses

Better to seize profits

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