Every now and then I’ll borrow ChatGPT’s power, part 10
FX automated trading, I am Reiwa no Double E, an EA developer.
Sometimes I’ll borrow the power of ChatGPT (lol).
There is no shortage of material at all,
I have many notes and drafts,
and since it’s tedious to整理 (compile/summarize), I delegated it all (lol).
Do not trade FX with living expenses! Debt is out of the question!
Today, I will talk about the most basic and important rules when approaching FX or investment.
It is that you must not trade FX with living expenses.
And, taking on debt to invest is strictly off-limits.
Operate with surplus funds as a fundamental premise
FX can yield large profits in a short period, but it is a high-risk investment method.
For this reason, in investments including FX, operating with surplus funds is the prerequisite.
Surplus funds refer to money that, after deducting living expenses and daily necessities, would not affect daily life even if losses occur.
If you use living expenses or debt to engage in FX, even if you gain temporary profit, there is a risk that daily life cannot be sustained whenever losses occur.
In the worst case, debt can swell and lead to financial ruin.
I understand the urge to earn a lot right away, but…
The desire to make big profits immediately is something everyone may feel.
However, in FX and investment overall, the goal is not to earn a fortune in a short period.
Rather, assuming long-term operation and steadily increasing assets is the most reliable path to success.
Even if you gain a temporary large profit, continuing reckless trading can quickly exhaust funds and lead to irreversible situations.
By not rushing and taking time to manage risk while growing assets, you will find the path to success in FX.
Manage risk with a long-term perspective
In FX and investments, risk management is the key to success.
Instead of taking big risks to chase a one-shot fortune, it is important to devise a strategy to steadily grow wealth.
Minimizing risk while steadily accumulating profits leads to ultimately greater results.
Backward planning toward the future – what you can do now
What you can do right now is to create a future-oriented operation plan.
From a long-term perspective, plan how to increase assets and what level of risk to take,
and trade based on that plan.
To do that, the following steps are recommended.
Set goals
Set concrete goals for how much assets you want to build in 5 or 10 years.
Understand your risk tolerance
Know how much risk you can take. Operate within the range of surplus funds and take risks that are not excessive.
Operate planfully
Develop a concrete long-term plan to grow assets. Instead of trading aimlessly, diligently manage risk and proceed with a planned approach.
Remain calm
Trading tends to fail when emotions take over. Stay calm and continue operating steadily for long-term success.
Summary
Trading FX with living expenses or debt must be avoided at all costs.
Do FX and investments with surplus funds, avoid hurry, and maintain long-term operation with thorough risk management.
Instead of aiming to earn a fortune in a short time, take time to steadily increase assets and aim for major achievements in the future.
What you can do now is to create plans for the future and manage risk with disciplined operation. With the right mindset and operation plan, aim for long-term stable asset formation.
See you!
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