I am urgently writing an article.
I am a candlestick FX trader.
I am currently writing this article as an urgent matter.
I have received several messages like this recently.
“I’ve suffered a big loss in stock investing…
Can I recoup it with FX?”
“I think AI will continue to grow,
but why are stock prices so dropping so much?
This isn’t FX-related, so could you share your thoughts, Candlestick Trader?”
Due to the recent drastic declines in stock prices like these,
what should I do,
will they fall even more in the future?
I have received several messages like this.
And even when looking at social media,
from people who mainly invested in AI semiconductor-related stocks,
there are a lot of posts that sound like screams, so to speak.
For example, here is the stock price of memory company Kioxia.
From the beginning of the year it had risen dramatically,
but since June it has dropped sharply from its peak.
Kioxia, if you invest in stocks, was the most talked-about stock this year,
and even was nominated as a candidate for the word-of-the-year buzzworthy category.
In the first half of this year, AI semiconductor and memory-related stocks such as Kioxia,
South Korea's SK hynix, U.S.'s SanDisk, and Micron,
were rising substantially.
And even leveraged ETFs appeared one after another,
and there were many people using margin to trade such as Kioxia.
Also on SNS and in the news,
there was a flood of information about AI investment, data center construction rush, etc.,
implying further expansion in the future.
In fact, that information is still circulating a lot now.
Then in the recent U.S. midterm elections,
the Democrats advanced more than expected,
and with the election of some governors opposing data center construction and AI development slowing or stopping,
the market quickly cooled,
and AI semiconductor stocks in particular fell in price.
In such a situation,
on SNS,
“It has fallen too far!”
“From PER, it is too cheap.”
“AI demand is just starting. This is a buying opportunity.”
“It’s like the eve of the Lehman Brothers collapse.”
There are both bulls and bears, and opinions are mixed.
Amidst this, then what should I do?
Should I reduce my position in AI semiconductor stocks for now,
or as many people say, is this a perfect buying opportunity?
Many people are wondering the same thing.
Now, by the way, why did I suddenly write about stocks?
I think many people are wondering this.
In fact, I personally also invest in stocks as well as FX,
and I regularly engage in stock investing.
However, disseminating information about stock investing can be a double-edged sword,
depending on the stock, it can lead to hype and even move the market,
so I have not touched on it much.
Also, many of GoGoJyan’s members are said to be mainly FX traders,
so I have been focusing on FX-centered information.
Lately, however, I receive more inquiries about stocks and asset management
and I thought I’d take this opportunity to write a little about the stock market as well,
so I started writing.
If there is demand, I may continue writing about this in the future as well.
Now, on to the main topic: what will happen to AI semiconductor stocks from here?
Will stock prices recover?
Or will they fall further?
I think this is the most concerning question.
Actually, I have a clear answer to this.
And as I usually tell you,
the market is determined by the difference between those who want to buy and those who want to sell.
If you compare it with that idea, the answer becomes clear.
When I create FX logic or when I trade,
I always look at which side is more: buyers or sellers?
That is, I look at supply and demand to trade.
Just like in a democratic country,
whether good or bad, the masses decide.
Even if the current price has gone too far,
or even if I cannot explain it with fundamentals,
or even if it is far from the real economy,
prices move in the direction the masses choose.
Therefore, even if you do rigorous fundamental analysis or
technical analysis,
and even if you read many headlines or analyze earnings reports,
in the end, prices move due to the difference between buyers and sellers.
If there are more buyers than sellers,
regardless of fundamentals or technicals,
the price rises.
Conversely, if there are more sellers than buyers,
the price falls.
That is all there is to it.
And because I have traded based on this,
no matter how the market changes,
I have continued to make profits in any market.
And applying this idea to the current stock market,
a clear answer emerges.
This time, I’ll publish it a bit more publicly as a special exception.
This approach provides hints for creating winning logic,
and it can be used not only in FX but also in the stock market and other financial instruments.
In any market, prices move according to supply and demand,
so this approach applies to any market.
And possessing this approach will make it clear how stock prices will move in the future,
and what you should do now.
Stock investors often experience moments where good earnings are followed by a large drop the next day,
or profits shrink but the stock soars the next day,
and you have likely seen such things many times.
And these movements are often explained after the fact as news,
as rumors of positive catalysts having been fully priced in,
or such retellings.
If you know whether buyers or sellers are more,
you can easily understand these moves.
So, concretely, how can you determine whether buyers or sellers are more,
and, on that basis, how will prices move in the future,
and what should you do with your positions?
I will explain these.
By knowing these,
you can trade without being swayed by the market,
and you can consistently perform superior trades and investments.
What is written is as follows.
・From Kioxia’s earnings, what the future stock price may hold and why it has fallen
・The future of AI semiconductor-related stocks
・A concrete method to analyze supply and demand by yourself and forecast the market
I am explaining these.
And by knowing these,
you can create your own logic in the future and manage your investments
by yourself.
Also, this content is
useful for people who are currently investing through the new NISA,
people investing in AI semiconductors or other investments,
and people who are doing index investing.
It is a content that will be useful for you.
AI semiconductor-related stocks are not particularly something you hold, so this may seem unrelated, but
rather, as these stocks fall,
the index will fall as well, so everyone is affected.
And after reading this article, you will understand the following:
・Why AI semiconductor-related stocks like Kioxia fell.
・Points to look at in Kioxia’s earnings.
・What will happen to AI semiconductor-related stocks in the future, and why.
・When the next rally in semiconductor-related stocks will occur.
・Timing for individual stock trading.
・Why Nintendo’s stock price was falling.
・Why Oriental Land’s stock price was falling.
・Reasons why stocks can fall despite good earnings.
・Timings when stock prices rise and the reasons behind them.
・When investing in individual stocks in the future, the best timing to buy.
・Timings for buying and selling individual stocks.
These are things that will be usable permanently in the future,
not just temporarily.
Indeed, because you are watching buyers and sellers to invest,
you can understand such things.
To be honest,
many people completely fail to understand this area and trade based on SNS information,
news, and a sense of price levels alone.
If you want to invest in stocks in the future,
or you are currently investing in stocks,
the content is also applicable to FX, so including those who only trade FX,
it is useful for all traders and investors.
Moreover, if you do not know this,
no matter how you twist and turn any analysis method, you cannot win.
So, although it is urgent,
I have written in great detail about the essential nature of the market,
and I recommend reading it as soon as possible.
※This does not provide specific buy/sell instructions for particular stocks.
Rather, it provides know-how and ways of thinking to enable you to determine your own buy/sell timing.
Also, the content of this article is
not widely known by many people,
since doing so could diminish my own investment attractiveness,
I will close sales once a certain number of people have accessed it.
In any case, in this current severe market crash,
if you don’t know what to do,
from now on, not relying on SNS information or others,
if you want to trade with your own judgment,
and in any market, in any market conditions,
to be able to buy and sell at appropriate timings,I would be glad if this could be of help to you.