“Three Reasons Profits Drastically Changed in Cycle Theory” – Featured in Toyo Keizai ONLINE column

Good morning, this is Matsushita.

I started investing in 2001,

and for a year and a half I couldn’t win at all.

In 2002 I encountered cycle theory,

and at a certain point, I suddenly began to win.

Moreover, not just win,

I started to win big.

Now, with the flood of information on the Internet,

anyone can easily earn monthly profits of hundreds of thousands to millions,

even billions of money is not hard to obtain,

there is a mood like that,

but this is not correct.

Profitably investing/trading is not that easy.

I wrote above that I began to win big,

in my feeling, profits exceeding 30% annual return

are not possible without some special technique or theory,

and proper money management.

Until then I had kept losing,

but I began to make profits of over a million yen in a single trade,

and there were times I tripled my funds in six months.

(The meaning of "one trade" written above

will be explained in the three reasons below.)

And in 2005, at the investment schools opened in Nishinomiya, Hyogo Prefecture and Hiroshima City,

students who would explode profits from the first year continued to enroll.

In one year, many students increased their funds by 3x or 4x.

In 2006, with a partner company,

we started distributing reports via the Internet,

among these participants, there were beginners who

made their funds 3 times through FX trading,

N who earned over 100% profit for two consecutive years,

a female investor who increased her funds 20-fold in one year,

and many other investors who similarly exploded their profits,

were produced.

※These are individual results and depend on the person.

Participation in the investment school does not guarantee results.

I have always thought that the reasons for such unbelievable profits lay in

“cycle theory.”

I will now explain the three reasons why the profits of myself and my students exploded due to cycle theory.

1. You can recognize and seize big opportunities.

2. By utilizing large cycles, you can expand profits.

3. When price action forms as you imagine,

you repeatedly buy more and sell more,

and you make enormous profits in one cycle.

Let me explain in order.

1. You can recognize and seize big opportunities.

Cycle theory is the theory that aims to use trading by confirming price movements (cycles) that repeat in the market at regular intervals.

These cycles range from short 24-hour cycles to long ones of 4–5 months, about 2 years, or about 5 years.

Long-term cycles, such as 2 years or 5 years, mark a starting point of a big opportunity,

and if you manage to buy successfully, an uptrend may begin for several years.

By learning cycle theory, you will understand that a seemingly low price in the market is actually a long-term buy opportunity,

and you will be able to seize big opportunities.

Trading frequency will be reduced, and you will be able to target opportunities you have never experienced before.

2. By using large cycles, you can expand profits.

As described above, markets contain cycles of varying size and duration, and when you ride a long-term cycle’s ascent, that ascent can be extraordinarily long.

Previously, you aimed for profits in short timeframes and price moves, but by using large cycles, you can expand profits beyond what you can imagine.

In fact, the memory of my first win is the selling of adzuki beans; during a month-long decline, I continued selling to grow profits.

Most commodity futures investors trade in extremely short periods, but

I also once continued selling corn for three months to extend profits.

3. When price action forms as you imagine,

you repeatedly buy more and sell more,

and you make enormous profits in one cycle.

Probably the biggest reason our profits exploded is this third point.

When you study cycle theory, you can envision several scenarios for future price movements in the market.

Not all unfold exactly as imagined, but it is true that at a certain frequency, price movements happen as you expect.

And when the price moves as you wish and you enter,

in a rising market you buy more and more,

in a falling market you sell more and more,

and you expand profits thoroughly.

For cycle traders,

trades built on one cycle can involve many buys and sells,

but that is still just one trade (using one cycle).

You want to profit from every trade in investing,

even subconsciously in your mind.

However, in reality things unfold very differently,

you cut losses many times,

sometimes take small profits,

and you win big only when the conditions are right,

you profit greatly in a few chosen stocks with large upside,

this is the real state of winning investments.

In the above-mentioned corn short selling for three months,

starting from the top, as it fell we sold more, as it fell we added two more short positions,

and in three months we earned over 2 million yen in profit.

This is the same for stocks, FX, and commodities.

Once your profit pattern (the cycle) fits,

you aggressively add buys and sells,

a starting 1,000 shares may end up at 10,000 shares,

an initial 1,000 contracts may total 15,000 contracts sold,

and you win as much as possible when opportunities arise,

this is the reality of trades that exploded profits.

And cycle theory holds that possibility.