Hello everyone, this is Yui Haruka.
In this article, I will summarize what I think is important in FX trading.
For those who are not good at managing their funds or cutting losses, we will also introduce two measures that anyone can take, so please read to the end.
The sharp depreciation of the yen...
As the yen continues to weaken, rising prices in Japan have become more noticeable recently. The other day, I was a little saddened to see the news that my favorite curry rice restaurant, CoCo Ichibanya, was also going to increase its price.
It can be said that the raw materials used for various products are almost always imported products.
This means that if the yen continues to weaken, not only will the prices of imported goods rise, but in the end, the prices of domestic products will also rise.
I think the current situation is like a state of self-imposed economic sanctions.
Regardless of my opinion, as the yen continues to appreciate, one-way charts are noticeable for various currency pairs (especially cross-yen).
Are there any beginners out there who have been burned by easy sales?
Today I will summarize what I think is most important in FX trading.
[Conclusion] It's all about not leaving
In conclusion, Forex trading is all about not getting out.
I'm sure most people who use overseas accounts have experienced a zero cut or stop loss at least once.
I don't know how many times I've cut it to zero.
However, recently I have seen many beginners quitting the game because of this.
It really feels like a waste.
A major advantage of using an overseas account is that you can trade large amounts with small amounts by using greater leverage than with a domestic account.
However, when you trade in this way, the risk of losing your money increases...
If you are not good at cutting losses, the following measures are effective!
Deposit funds in installments
One solution is to split the funds into separate payments.
It would be pointless to lose all your funds in a trade aimed at a sudden reversal.
It really only takes a moment to melt.
For example, if you currently have 1 million yen on hand, instead of depositing it all at once, reduce the amount you deposit by dividing it into 5 or 10 installments.
Also, if you use an overseas account, you can get great deals by taking advantage of deposit bonuses!
You can revive if you have 30% of your funds remaining.
The second measure is to keep 30% of your funds on the balance sheet no matter what kind of trade you are making.
In my opinion, FX can be revived if 30% of your funds remain.
On the other hand, if you lose more than 70% of your funds, it will be very difficult to recover.
If you are not good at cutting losses or tend to cut your losses to zero, we recommend that you set a stop (stop loss line) before entering!
It is advisable to enter with a stop at a position based on reason,
If you can't do that, try to place your stop at the very limit so that you still have 30% of your funds remaining.
Finally,
Once you leave, it's really all over.
The world of investing is brutal, and while you may spend time trading, you could also lose money.
I have had many experiences in the past, such as losing a large amount of money in a single trade, or being hit with a zero cut and then investing a huge amount of additional money only to lose that all.
But if you survive, one day you'll be able to win!
Let's continue to grow together!
Thank you for reading to the end today.