"East Asia Economy ONLINE" Column Now Available: How to Increase Daily Account Balance?

Good morning, this is Matsushita.

The NY Dow rose again yesterday, and as I need not say again,

record highs have been updated day after day.

The Shanghai Composite Index continues to rise, and the world market seems to be

very stable.

USD/JPY is retreating to the low 113 yen range.

NY Gold continues to edge up slightly.

When you continue to buy and sell stocks or FX,

unless you are a day trader,

your account balance will go up and down every day.

Investors who cannot make a profit will spend each day

watching this balance gradually decrease,

and every day will become painful.

On the other hand, investors who make a profit

spend their days with balances gradually increasing,

and waking up in the morning is enjoyable.

Because they wake up with the feeling of,

“Will it increase again today?”

which is why they rise from sleep.

All investors aim for the latter,

but

many investors incur losses,

so they face painful mornings every day.

For me, in the first year and a half since I began investing,

it was the former.

Rather than mornings being painful,

nights were anxious and I could not sleep.

For investors whose money keeps decreasing,

and for those whose money keeps increasing,

there is a common reason.

That is, “whether you are riding the trend or not.”

Most investors

wonder which stocks will go up?

which stocks will go down?

Will it go up today or down?

With this awareness and perspective,

they watch the market and price movements.

Even trading with this awareness and perspective

cannot predict the future,

so money does not increase.

Even worse,

handling of unrealized losses,

and unrealized gains

tend to move in a negative direction,

which worsens this cycle.

To have daily increases in account balance and to trade smoothly,

you must

have the mindset of “riding the trend.”

Because a trend is a movement biased in one direction,

if you ride with it, more time will be spent increasing money than decreasing it,

and your account balance will gradually

increase, entering a rhythm.

It is impossible to predict the future,

but you should be able to find and ride the trend.

Trends can be seen with the eyes through charts.

When you hear “trend,” you do not need to imagine long, lasting price moves of over a year.

Even a 10-day rise is enough if the time spent rising exceeds the time spent falling

then that is an uptrend.

In this way,

try to ride price moves that are biased in one direction.

First, start with simple things,

and make it possible to do.