De-Posi-Posi Disease! If you were managing your mental state, you’ll stay far from “Posi-Posi Disease”?! ~ Compare things that have a start and a goal! Episode 1: Mountain Climbing Edition ~

Tengen Mental Management.11

FX is often described using many analogies.
This is because the definitions are easy to establish, making the analogies easier to grasp.
Since you are making a deposit, the withdrawal is the goal.
Since you enter, the profit-taking is the goal.
However, it is said that many people exit or retire without reaching the goal in FX.
As mentioned in the title, I would like to focus on overcoming this from a mental management perspective by featuring “Posi-Posi Disease” and giving examples.

《Example ① Mountaineering Chapter》
Mountaineering aims for the summit at a proper pace with appropriate breaks on a safe path. If you mismanage the pace, you may fail to reach the summit and have to descend midway, or you may reach the summit but exhaust yourself and cannot descend.
If you lose the correct trail, there are dangers such as slips, falling rocks, collapses, and wildlife like bears.
If you push yourself on a day with bad weather for mountaineering, you will naturally struggle and your life will be at risk.
Let’s replace it.

◯ Weather → Timing (indicators and market open/close, etc.)
You want to start when the conditions are not turbulent. Note: prior preparation
◯ Trail → Direction
Recognize the environment and determine the direction with Dow Theory and moving averages. If the path isn’t visible, forward or backward moves are hesitant and you stall. ※ Environmental recognition
◯ Appropriate pace → Trade style and position size (lot)
Pace allocation should be slow when climbing with older people and fast when with younger people. Decide whether you are scalping, day trading, or swing trading, and only then settle on the appropriate lot size.
※ Money Management
◯ Break → Position management (what to do while holding)
At the rest stop, how was the pace? How is your physical condition?
From here, can you continue climbing? After confirming the trail, identify how many difficult sections lie ahead and take a “comprehensive judgment” to rest and decide whether to descend or summit.
I think the same applies to trading.
After entering, are you holding your breath watching the price movement?
As position management, do these things at the rest stop.
If the market moves against you, don’t you realize from what point you started the climb?
If you entered at a bottom or top, there is no rest area below, so you either retire immediately; if you entered on a pullback or after a bounce, you should have started the climb midway.
Where is the rest stop when the market moves against you? It’s before the stop-loss.
If it moves in your favor, there are several rest stops before taking profits.
When you arrive at a rest stop, you drink water and zone out—wouldn’t it be scary to suddenly say “let’s go” and resume the climb?
From now on, gather information about the mountain you will climb, talk to people who have descended, and check maps to set your resolve and prepare.
If you arrive too early, your pace may be too fast and you risk burning out in the latter half, so there are many things you can do at the rest stop. I believe that is position management.
※ Position Management
◯ Summit → Profit-taking
To reach this summit, choose the day, prepare in advance, analyze, and plan your strategy while aiming for the goal.
Apart from staggered entries with split settlements, by managing positions and aiming for profit-taking points, the more times you reach the summit, the more experience you gain.
Let's aim for NICE attacks.
※ Trade Vision
◯ Retirement → Cut Losses
Retire due to physical or mental state, deviation from the trail, etc. Prioritize survival in your judgment.
Those who retire in a way that makes you never want to climb again are not acceptable.
Don’t overdo it. Don’t push too hard. Don’t cling too long.
What were you doing at the rest stop? Did you manage your position?
Starting and sprinting to the goal isn’t easy, so use the rest stops effectively.
※ Withdrawal Rules
◯ Descent (after summit) → Review
Reaching the goal isn’t the end of mountaineering.
FX is the same. Trading isn’t over after you finish a trade.
Was your trade vision correct?
Was the direction correct?
Was money management and position management adequate?
Was your exit decision correct?
By repeatedly analyzing various aspects of your trades and improving, your accuracy increases, and by treating trading like safe mountaineering you can convert your success into experience when facing branching situations and make correct decisions.
※ Trade Verification
◯ Maps needed for mountaineering → Charts
Essential to avoid getting lost
※ Pre-Preparation
◯ Radio → Information gathering
By obtaining information from SNS and communities, you can anticipate sudden changes in the situation
※ Fundamentals Analysis
◯ Food, water → Deposits account
Refueling or replenishing along the way allows you to respond calmly in emergencies.
※ Money Management
◯ Compass → Indicator
A reinforcement of direction. Visuals first, while carefully checking maps and signs, also watch the compass.
In some situations the compass may not work, so overreliance can lead to confusion; beware.
※ Indicator
◯ Clothing suitable for mountaineering → Trading environment
Practicality is important, but dressing well can also sharpen your focus and discipline.
※ Pre-Preparation
◯ Emergency whistle or flares → SL
Safety devices. To tilt or remove these would be…
※ Position Management
◯ Mental Preparation in Mountaineering → Mental Preparation in Trading
As you aim for the summit, you must keep your eyes on the goal, but your footing must be secure and you must overcome difficult sections without letting your guard down and climb at a proper pace. If you misjudge, you may lose your life, so prepare for the worst and do your best.

※ Mental Preparation in Trading

This time I used mountaineering as an analogy, but using analogies as a mental management technique is important.
Trading
Money
If you fixate on this too much, fear of loss and overconfidence from winning trades dull your sense of calm judgment.
Everyone climbs different mountains with different difficulties, but the preparation and attitude remain the same.
The first chapter was the Mountaineering Chapter. For those who find it hard to imagine, I will continue to post other examples in the future.
Incidentally, I learned a lot about mountaineering during a manager training program in my professional days.
Posi-Posi Disease = entering opportunities → so… are there that many places to start mountaineering in FX?
By carefully drawing in, entry opportunities become narrowed, and by using analogies from other things, your thinking may change from a different perspective.
I hope this becomes a good opportunity to re-recognize the depth of mental management.