"East Economic ONLINE" Column Published Now — How to Create Simple Buy/Sell Rules

Good morning, this is Matsushita.

In yesterday's column, from the results of the individual investor survey,

the big reason why people are losing is

1. There are no rules, and even when there are rules, they cannot be followed

2. They cannot cut losses, or even when they cut losses, it is inappropriate

as I introduced.

Today, about the most significant reason for losses—the

“trading rules” —we will briefly think about how to create them.

In the theory I advocate,

a trading rule consists of the following six elements.

1. Environmental recognition and stock selection

2. Entry

3. Stop-loss point

4. Trading size

5. Environmental recognition for taking profits

6. Exit (take profit)

By determining these six elements with high precision of profit

is what it means to “create a trading rule.”

However, beginners or people with shallow knowledge cannot realistically create all the rules at once.

Then you cannot have trading rules from the start.

Please create the trading rules one by one.

In other words, to increase the probability of profit,

decide on the criteria that you “must be particular about.”

Decide on these dedicated conditions.

This is the start of the trading rule.

“To increase profits, decide on your dedicated conditions.”

If you think this way, trading rules also

become not so difficult, right?

Once you decide on one, always implement it.

Then, for the second dedication,

increase the third dedication and its conditions.

Thus, your trading rule creation will

progress step by step.

If you try to tackle everything at once,

nothing will progress.

Decide the rules one by one.

ps

If you want to know that “dedication to increasing the probability of profit,”

please study.

There are no shortcuts here.

The surest shortcut is to steadily learn.

The sooner you learn, the sooner you will start making a profit,

which is a fundamental principle in the world of investing.