Whether it’s FX or stocks, a common problem for traders is loss-cutting. I’ll explain about trading. I think that most people who fall into this category are at an intermediate level. If this applies to you, there is a surefire way to solve the problem, so try it out.
What is loss cut poverty?
Poor loss cut means that if you go backwards by 5 pips or 10 pips after you enter, you will not be able to stand it and will settle the loss. This is often a disease of some kind. If you get stuck in this, even if you win big, you won’t be able to see it from a total perspective. This is because the number of daily stop losses becomes overwhelming and most of the profit is spit out. People with this disease often have:
perfectionist
Loss-cutting poverty is common among perfectionists. If you don’t like the timing of your entry, or if you’re even a little unsatisfied, you’ll cut your losses. This can hardly be solved without changing the thinking itself. Trades never go so well.
no trade rules
If you don’t decide the trading rules yourself, the points you entered will be in the form of entering somehow, and you will feel uneasy. If there is even a slight reversal, there are many cases where the loss is cut. Stop entering for nothing.
unconfident
Especially if you’re a trader who’s been losing for a long time, you’ll lose faith in everything you do, and you’ll get into the habit of cutting losses quickly. This is a decrease that is especially common for beginners, so if you are not careful, it will not be a total plus.
too many lots
If you play with a lot that you are not used to, you will get scared just by going backwards. You want to be released from fear, so you cut your losses. In this case, the problem is that the lot is raised too much in the first place.
How to overcome loss cut poverty
Once you get used to cutting losses, it is difficult to break, but you still need to fix it. To do this, we recommend that you try the following measures. Losses are inevitable in investing. Find the main cause and solve it. We recommend that you analyze the trend, set a limit price after entering, and not look at the price during the trade. The basic principle is to continue with a good, well-founded strategy, and your win rate will increase if you fight. If you continue to get consistent results over the long term, it should become stable. Use technical analysis to check the habits and knowledge of price movements.
set the trading rules
Decide on your favorite chart pattern, risk reward, and stop loss and take profit points. Please try to enter after deciding this. And never make a payment until the point you decide. This alone will change things a bit.
lower the lot
There are many traders who raise lots too much in the loss cut poor. If you raise the lot too much, you will get scared just by losing a little. In that case, try lowering the lot. Even if the unrealized loss increases slightly with this alone, it will be fine.
don’t look at the chart
It is important not to look at the chart. Most of the loss-cutting poor are looking at the chart in real time, and they often get scared just by going backwards and cut the loss. In this case, let’s set the limit price and stop loss first and set the automatic settlement. And I recommend leaving it alone.
don’t feel anxious
Some people who are poor at cutting losses get anxious easily and drop their positions even if they have unrealized gains. However, this is not recommended. This type of person will cut their losses if they have even a small unrealized loss, so it is better for this type of person to learn to endure as much as possible. If you can’t endure at least minus 20 pips, you will not be able to win forever. In general, be aware of the specific purpose and importance of the content and use it. Minimize the influence of psychology.
don’t look at your feet for a short time
When you look at short-term charts such as 1-minute, 15-minute, or 30-minute charts, you tend to jump in and enter when the market starts to move in one direction at a certain time. However, when you look at the daily or weekly charts, there are many cases where the market temporarily moves in the opposite direction. When predicting the amount yourself, try to look at things from a broad perspective and with sufficient standards. Professionals clearly see the daily flow of product investments. They are very vigilant about the market movements to see whether they are selling or buying.
Do not jump in and enter
Hop-on entry means that beginners enter to catch the fish when they start to see the direction. But this is not recommended. The reason for this is that when a positional reversal occurs, unrealized losses become large and people often end up selling at fire. When it comes to direction, it’s already too late to enter. Please prepare before the direction is given.
HFM recommended
With HFM, you can trade over 1,000 stocks, FX, virtual currencies, and more. You can open an account for free, so please refer to the article below to open an account. By repeatedly trading one by one within the service, you will be able to make a high profit. If you find an opportunity with a rising currency pair, place orders as much as you can. Start with a side job. You can trade from short-term to long-term. There is also a stop loss, so you can rest assured.
コメント