Many people easily fall into this trap
We have decided to sell methods and indicators on GogoJun.
My name is Fuwa-fuan @ Trader.
Now, today I would like to talk a little about the “ traps that many people easily fall into.”
In particular, misconceptions about capital efficiency.
A commonly held view is that scalping has high capital efficiency because the holding time is short and the risk is low.
Then, when you scalp, which time frame do you enter on?
Do you look for a trend on the 15-minute chart and enter on the 1-minute chart? If so, movement is too slow.
You end up entering after the fact.
Then what are all the traders around the world focusing on? It’s the tick chart.
This is the professional traders’ viewpoint and it is very important.
How should you judge the tick chart? By analyzing the enormous amount of past tick data and
mechanically identifying patterns such as breakouts and ranges.
Using order book information, and confirming the movements of many traders’ stop-loss actions, you identify the entry point.
Then, to improve daily entry accuracy, you continue to analyze further.
(These are things that many hedge funds and brokers are constantly pursuing.)
On the surface, scalping seems to have better capital efficiency due to shorter position holding times and the ability to avoid sudden price fluctuations,
and with the power of compounding, a large asset increase can be expected.
However, in the process of reading tick charts and tracking the movements of many traders,
is capital efficiency really that good?
In reality, scalping is a representative high-risk, low-reward method.
Most of the time you must make quick judgments in scalping, and
(These are well-known topics, and aiming to be like a top fighter pilot is also highly appealing.)
Furthermore, the reason day trading is chosen over scalping, where fees are a burden, lies here as well.
Due to the difficulty of scalping and fee pressure, many full-time and part-time traders eventually settle on day trading.
They focus on day trading, and move funds to swing trading and scalping to seek further capital efficiency.
With these considerations, we hope this helps you think about what capital efficiency actually means and what trading style you should aim for.
Introduction of “Trend Rider”
Dear beginner traders, do you have these worries?
- The price reverses at the moment you enter
- The price rebounds right after you cut losses
To solve these problems, we developed “Trend Rider,” a trend-following indicator specialized for entering on the trend.
So, what exactly does “trend-following specialization” rely on?
“Trend Rider” specializes in accurately capturing market trends and provides strong support to optimize entry timing.
【TriTrend Analyzer】 Introduction
【TriTrend Analyzer】 is a tool that organizes the market’s complex information clearly and focuses on mass psychology.
Do you ever hesitate at entry during trading?
For example, entering near recent highs and lows can lead to wins, but such judgments require solid evidence.
Indicators like moving averages and Bollinger Bands can be useful at times, but
What matters truly isunderstanding why that price is being watched.
Simply entering because it’s a high or low or because a technical is○○ is not enough.
Understanding crowd psychologywill increase the likelihood of finding high-probability entry points.
Furthermore, with repeated trading experience, your skills will steadily improve.
Then, why isunderstanding crowd psychologyimportant?
If you’re interested, please see the product page for【TriTrend Analyzer】via the link below.
If you’re interested in diversification, this is also recommended.
This is a method aimed at achieving stable trading while holding multiple positions, called【CrossCurrency Pro】.
It’s a simplified method used by professional traders, so you can aim for stable income!
Details on quick take-profit are here ↓
For those seeking stable income, see here ↓