Reason why 62.5% of the market is not worth gambling

Do you know about filtering?

If you don’t even know this word, or you trade without being aware of it, that can be dangerous.

Filtering is important for investors who use scalping or day trading styles, and it can be fatal if you’re doing scalping and don’t know about filtering.

What do you think is the most important thing in scalping?

・Stop loss

・Take profit

・Money management

These are all important, but they are by no means the most important. Before them, filtering is more important.

What is filtering?

By selecting entries, in simple terms, it decides whether to trade or not.

Have you ever had this experience?

When scalping, you surprisingly easily find winning patterns, and even though you trade according to those winning patterns, you still end up losing overall.

The reason is that filtering isn’t being done.

Filtering in scalping directly affects profits and losses.

In other words, even if you find a winning pattern,there are wasting trades where you lose after resembling a winning patternand you trade anyway.

Recognizing your obvious winning and losing patterns in scalping doesn’t take long. However,being able to clearly recognize patterns that resemble winning patterns but lead to losses, eliminate them from trading, and refrain from entering tradesis difficult and takes time to achieve.

One of the main causes of failure in scalping is being unable to filter.

So, what kind of patterns should be eliminated?

That’s likely what you’re thinking. I had the same thought and searched around and read books. However, even if winning patterns exist, I couldn’t find patterns to skip.

“Could someone please make a list of patterns you must not bet on?”

I thought so as I looked, but there wasn’t one.

So I created the list myself.

When I scalp, I also refer to this list to make decisions.

That is theFiltering Decision List. It includes explanations with chart images.

While creating this Filtering Decision List, the figure 62.5% came up.

It includes not only patterns to skip, but also patterns to enter.