[For Absolute Beginners] Nice to meet you!!
Nice to meet you!! I’m Tatsurou Kawase.
FX is a mysterious thing; even if you trade haphazardly, you should win with a 50% chance, but many people end up losing, right?
If you think about it simply,
1. Increase the probability of predicting whether the market goes up (yen depreciation) or down (yen appreciation) to more than 1/2.
2. Win big and lose small (small loss, big profit).
If you can do these two things, you won’t end up losing overall.
Winning big and losing small (small loss, big profit) … this is something simple, isn’t it?
After you take a position, just place an OCO order with a slightly larger take-profit width than the stop width.
For example, if you set a stop of 20 pips and a take-profit of 25 pips, it automatically becomes a small loss, large profit scenario, right?
So, how can you increase the probability of correctly predicting up or down to more than 1/2?
Here, we’ll introduce a very simple method using the "lagging span" to judge which direction the market is currently heading.
It’s a very simple method.
Well, that’s all for today.
Kawase
... I’m bloggingThe Restructuring Generation! FX from age 50
