Shinomiya, a swing trader, seriously recommends scalping.
Position talk isn’t just about affiliate marketing.
With affiliate marketing,
it’s easier to understand because the conflicts of interest are visible.
If someone earns a commission by introducing overseas FX,
they have a reason to recommend overseas FX.
If someone is selling EAs,
they have a reason to talk about the benefits of EAs over discretionary trading.
But what’s even more troublesome is that
even when money isn’t involved,
people still engage in position talk
that is the case.
People who have succeeded with scalping
know the rationality of scalping.
If someone has only ever done swing trading,
they might think,
“There’s no need to trade every day.”
People who have studied discretionary trading for years
value discretionary skills highly.
People who have achieved results with EAs
“The ability to eliminate human emotion is the real strength”
is what they think.
All of these are, for those individuals,
undeniably their true feelings.
That’s why there are conflicts.
It’s not because someone is lying, but because
they take the view from their current position
and make it the “correct answer for the market.”
As for Shinomiya right now,
when it comes to FX, I lean towards swing trading.
And currently, I am investing not only in FX but
mainly in stocks.
This time, I, Shinomiya, will dare to
seriously recommend
scalping.
In the end,
“Scalping was no good after all.
Swing trading is recommended.”
is not what this article concludes.
It is quite the opposite.
I, Shinomiya, believe that I am actually
quite good at scalping (laughs).
What I was first taught by my coach
was also scalping and day trading.
I did a lot of volume, regardless.
I had good experiences, and
I also had many tough experiences.
I know the fun of making decisions in the short term,
the strength of gaining experience in a short period,
and the power of rotating capital.
That is why even now, depending on the purpose,
I believe the rationality of choosing scalping is quite high
I think.
So,
why is it that I, Shinomiya, who understands that much,
am doing swing trading now?
I will write about that as well.
If I were to relearn FX from scratch now, there is a reason to choose scalping
“Swing trading is recommended for beginners”
It is a phrase I often hear.
But I, Shinomiya,
do not necessarily think so.
Depending on your purpose for starting FX,
there are actually parts of scalping that are
easier to learn.
There are three main reasons.
1. You can try it on a small scale
The first benefit of scalping is
that it is easy to complete a single test on a small scale
of things.
Of course,
it is a different story if you trade with large lots.
But if your goal is
not “to make a fortune all at once”
but rather
to try it out using real money
then it becomes
a very good practice.
Enter a position.
It moves in the expected direction.
Cut if it goes wrong.
Take profit.
Reflect once it is over.
You can experience this entire sequence
in a short amount of time.
And it is not a demo;
your own money is actually moving.
Even if the amount is small,
you feel happy if you make a profit.
You feel frustrated if you take a loss.
You worry about price movements once you enter.
Greed kicks in as you approach your profit target.
Including those emotions,
you can experience trading firsthand.
Shinomiya thinks
this is quite significant.
2. You can handle an overwhelming amount of volume
In swing trading, you may wait
for many days until a good spot arrives.
Having no entries for a week
is not uncommon.
But in the early stages of learning,
if you are thinking solely with the goal of
“wanting to increase practical experience,”
this is a fairly big problem.
If you only enter three times a month,
it will take quite a long time
to gain 100 experiences.
With scalping,
depending on the conditions,
you can practice multiple times a day.
In other words,
even in the same month,
the number of “decisions” you can experience is different.
Entry.
Stop-loss.
Take-profit.
Passing.
Too early an entry.
Too late an entry.
Profit that couldn’t be extended.
Loss that couldn’t be cut.
You can have these experiences
many times in a short period.
Of course,
it is not a simple matter of
increasing the number of times making you better.
Even if you do 1000 sloppy trades,
you are only reinforcing sloppy habits 1000 times.
However,
Try under the same conditions.
Record.
Look back.
Correct.
Try again.
If you can do this,
a high number of trials
becomes material to increase your learning speed.
3. The amount of verifiable data you can use in practice increases
Shinomiya thinks
this is the biggest factor.
Looking at past charts 100 times
in a backtest.
Of course, that has meaning.
But,
making a decision without seeing the right side of the chart,
actually entering,
and waiting for the result.
This is a different kind of experience.
Why did I enter?
Where did I cut the loss?
Why did I take profit?
Was it really according to the rules?
Did I change it midway due to emotions?
Such records will increase.
With scalping, you can collect
a large amount of this in a short period.
In other words,
your own forward data increases.
“This pattern would have won in the past”
instead of that,
can I reproduce this judgment
in the actual market?
You can confirm even that.
This
is quite valuable.
If you want to turn over your capital in a short period, scalping has strong rationality
I will delve a little deeper.
If your goal is to
turn over your capital in a short period in FX
then
I, Shinomiya, think scalping is
a quite rational choice.
There are many opportunities in a single day.
Each trade ends in a short time.
It does not tie up your capital for a long period.
Assuming you have the necessary skills and risk management,
depending on how you take risks,
it is possible to
compress the time required
to increase your capital.
This does not mean
that “scalping makes money easily.”
An increase in the number of trades
also means an increase in the number of failures.
If you increase the risk,
not only does the speed of profit increase,
but the speed at which you lose capital also increases.
Even so,
it has the characteristic of being easy to increase capital efficiency and the number of trials.
Therefore,
if your goal is to
gain experience in a short period,
test your trading skills in practice quickly,
or actively rotate your capital,
then I, Shinomiya, consider
scalping to be a rational method.
So, why did I, Shinomiya, become a swing trader?
Reading this far,
it seems a bit strange, doesn’t it?
You can try it on a small scale.
You can handle a high volume.
You gain more practical data.
It is also easier to rotate your capital.
If I understood that much,
why did I, Shinomiya,
not continue scalping?
Actually, it was not because I
stopped getting results with scalping.
It was quite the opposite.
My monthly balance became stable, and when I divided my monthly profit by the number of days,
there was a period when it
came out to about 20,000 yen per day.
That was when I, Shinomiya, before I knew it,
“My FX trading earns me 20,000 yen a day.”
started to think that.
Naturally,
I did not win 20,000 yen every single day.
There were days with stop-losses.
There were days I did not enter.
There were days that were negative on a daily basis.
Even so,
I conveniently converted the overall monthly results,
If I trade, I can earn about 20,000 yen a day.
and started to think that way.
At this point, I felt a little scared.
When I first started FX,
it would be a huge success if I could just be in the black for the year.
That was the mindset I had.
I was also prepared for losses.
However,
because I got results in a short period of time,
the purpose and goals I had initially set
had changed without me realizing it.
From my coach,
I want you to experience many failures while you still can.
That was one of the reasons why I
kept scalping.
I started scalping to gain experience.
Before I knew it,
something to generate daily profits
was what it started to become.
So,
I asked myself once.
Do I want to continue scalping, which I started to gain experience, even if it means changing my goal?
The answer was no.
I want to use this experience
elsewhere.
That is what I thought.
Therefore,
it is not that I quit because I found a major flaw in scalping.
It is because Shinomiya’s goal changed.
Shinomiya’s goal changed.
“Increasing funds through FX” was no longer the goal.
Previously,
I thought a lot about
how to increase funds within the world of FX.
If that were the case,
the number of trials. Capital efficiency. Number of entries. Experience gained in a short period.
These things have
great value.
However,
my way of thinking changed little by little.
Increasing capital through FX itself
is no longer the ultimate goal.
Look at stocks.
Look at total assets.
Look at long time horizons.
And,
from “how much to earn from trading”,
including how to spend my time,
“how to manage my own assets”
my interest shifted toward that.
Then, even though my scalping results
didn’t get worse,
my internal priorities changed.
Whether to view FX as speculation or treat it as part of asset management
Shinomiya views scalping as
a highly speculative type of trading.
Capture short-term price fluctuations.
Turn over capital many times.
Profit from price differences.
But this is not meant in a bad way.
Speculation has
its own rationality as speculation.
Therefore,
I also understand well
what scalpers are saying.
And,
if you choose scalping for yourself,
I think that is fine.
Scalping has
enough appeal without needing to put down other methods.
Whether it is overseas FX,
discretionary trading,
or EAs,
it is the same.
There is no need to make other options look weak
to justify your own choices.
However, right now, Shinomiya
prefers to treat FX not as an isolated game, but
as one part of my overall asset management.
That is what I think.
Once you start looking at your asset formation as a whole,
in my case,
the higher the risk,
the smaller the allocation naturally became.
When that happens, there is no longer a need
to enter the market many times every day.
There is also no need
to try and capture every single short-term price movement.
Wait for the time frame you want to target.
If the conditions aren’t met, do nothing.
In the meantime,
you can look at stocks.
You can also study.
You can also spend your time
on something completely different.
For the current Shinomiya,
this approach suits me better.
It’s not that I switched to swing trading because scalping was bad.
This point
is quite important.
Because scalping was difficult.
Because I was tired.
Because I couldn’t win.
It is not a story about
running away to swing trading.
Scalping has
strengths that only scalping has.
If I, Shinomiya, were to have the goal of
“gaining a large amount of practical experience in a short period of time”
once again,
I would naturally include scalping as an option.
But right now, that is not what I am looking for.
That is why, for now, it is swing trading.
“What you can do” and “what you choose” are different
When you start FX, you inevitably want to think,
Which is better, scalping or swing trading?
I want to think about that.
But perhaps, the question itself might be wrong.
Scalping has
its own strengths.
Swing trading has
its own strengths.
The issue is,
not which is better, but what you want to achieve by using FX.
is the point.
If you want to increase your experience,
hone your skills in a short period,
or rotate your capital efficiently,
then
scalping is quite rational.
On the other hand,
if you do not want to spend too much time,
want to look at your assets as a whole,
do not want to focus only on FX,
or want to make decisions based on longer timeframes,
then other options emerge.
Therefore, you do not need to deny the other person’s correct answer
Scalpers and swing traders
often argue.
However, if the goals are different,
it is natural for the answers to be different.
People who can watch the charts every day.
People who can only watch them in between work.
People who only want to do FX.
People who also want to do stocks.
People who want to increase their funds in a short period.
People who want to build assets over a long period.
It would actually be strange
if everyone arrived at the same answer.
That is why I, Shinomiya,
do not reject scalping.
Or rather,
The techniques covered in my trading materials themselves
are things that can be used for scalping.
Or rather,
Even for swing trading itself,
the entry point itself
requires skills honed through scalping.
Rather than ending the success captured with those skills
with a short price range,
it is better to take more over a longer period! That is why
I became a swing trader.
So there is no reason to reject scalping, and
people who cannot scalp cannot swing trade either (in my opinion).
On short timeframes,
How does the price change?
Where do you make a decision?
Where do you admit you were wrong?
It is precisely because I have experienced a lot of scalping
that my current swing trading is successful.
Therefore, for me, Shinomiya,
I did not abandon scalping
to become a swing trader.
I just changed the timeframes and goals I use
while keeping what I learned from scalping.
At the beginning,
I talked about position talk.
I recommend scalping because I am a scalper.
I recommend swing trading because I am a swing trader.
I reject EAs because I am a discretionary trader.
I reject overseas FX because I use domestic FX.
However, what you should really look at
is not which camp that person is in,
but why they are choosing that option.
Don’t you think so?
I, Shinomiya,
know the benefits of scalping.
That is precisely why I can also explain
the reason I am choosing swing trading now.
“Because swing trading is superior”
is not the reason.
It is simply because swing trading better suits
what I, Shinomiya, am currently looking for in FX.
That is all.
Knowing your options deeply is not about
denying one or the other,
but about knowing what you want to choose.
If you can understand this way of thinking,
you will understand why I, Shinomiya,
rely on discretionary trading rather than AI or EAs.
Why I am choosing domestic brokers right now,
rather than offshore FX or prop firms.
Even without knowing each of those individual reasons,
you will likely get a sense of
what criteria I, Shinomiya, use to make my current choices.
That part should become somewhat clear.
It is not about which one is the best,
but about what your current goal is
and what you want to prioritize.
My choices, Shinomiya’s choices,
are ultimately decided by that.