"Featured in TOYOKEIZAI ONLINE" Three unique魅力 of the cycle theory (Three魅力 is Japanese; please confirm: likely "three魅力" means "three charms/appeals")
Good morning, this is Matsushita.
Today, this is Makoto Investment School
Trade Research Meeting day.
At the Trade Research Meeting, each participant
discusses the formation of their own trading rules and the actual
progress of operations, seeks new challenges,
and talks about possible ways to overcome them.
Among the materials reported in advance,
there seem to be people who have started to make profits again,
so I’m looking forward to it.
“Focusing on making profits”
is also one of the purposes of the Trade Research Meeting.
Because it is one of the true goals of every investor.
Today marks the third consecutive weekend event.
I will thoughtfully consider and advise so that it leads to profits for all participants.
Right now, I am busier than ever,
and I am creating new ideas and content.
This week, starting next month,
Makoto Investment School Special Lecture “Matsushita Cycle Theory”
School Textbook was being prepared.
Because this is the first time in three years, I am revising the contents quite extensively,
and within myself, I was confirming my understanding of cycle theory.
In the process, I realized something.
After all, I love cycle theory.
Today, I would like to write about three reasons I love cycle theory.
1. You can seize big opportunities
2. You can notice price movements that no one is watching
3. It’s easy and enjoyable
1. “Seizing big opportunities”
is the most direct way it reflects on trading and investing
profits.
In price movements, there are short-term cycles,
as well as long-term cycles like 25 years or 50 years,
and if you notice a big opportunity that comes once every several years or a decade or two,
and enter the market at that point,
profits will naturally grow.
The easiest-to-understand long-term cycle is the 5–8 year cycle, and I have thus far
experienced this three times.
At any of those times, other investors were amazed at the large profits,
but if you understand cycle theory, it isn’t surprising; it’s a routine event that happens every few years.
This once-every-several-years opportunity will come within the next few years, I believe.
2. “Price movements that no one is watching,”
as mentioned above, in cycle theory, there are long cycles that exceed 50 years.
The current environment of Japanese stocks and FX is biased toward ultra-short-term trading,
and when a larger movement occurs, it can easily throw traders off—
short-sighted, narrow-minded, and dangerous.
Understanding cycle theory allows you to know price moves that other market participants
haven’t imagined or are not paying attention to, which is very enjoyable and exciting.
Moreover, deeply studying cycle theory helps you understand the scenarios and possibilities of price movements,
and this is also very enjoyable, so you won’t get bored.
Every day, every month, and every year are fresh and full of surprises.
And there is a continuous, cohesive story behind it.
Within that cohesive price story, you can generate profits.
Understanding cycles makes you not want to stop investing.
3. “Easy and enjoyable” means,
as you read above, it is clear at a glance.
Investing and trading are not always enjoyable, unfortunately.
When losses persist, it can be painful and
requires certain work and study, which may feel burdensome.
But once you learn about cycle theory,
you can glimpse a completely new world,
and it can lead to the creation of the next moment in some sense,
which makes it incredibly exciting and enjoyable.
Also, regarding my own goal of increasing money through investment,
you can choose the stage (cycle) you like to utilize,
increasing your freedom,
and you can clearly recognize the value of your own trading,
making it enjoyable.
By learning cycles and re-recognizing the value of your own trading,
you won’t feel like venturing into other trades.
Your own trading will become your favorite.
And that trading will become yours alone.
It has already been 14 years since I encountered cycles.
During that time, I have continued to pursue cycles, but
I still feel like a newcomer who has only just passed through the entrance,
always continuing to study cycles with that feeling.
Cycles can be studied for a lifetime, and I believe they will always be profitable.
Therefore, I love cycles.
So, I want as many investors as possible to know the cycle theory I love,
to encounter trades that lead you to your own confidence,
and to make profits.
I hope you will encounter trades that you truly love with confidence,
and achieve profits.