“East Asia Economics ONLINE” column now published: a misalignment of unseen senses
Good morning, this is Matsushita.
75% of market investors
have been losing since they started investing
as shown by the results of the New Year survey
we understood.
So many people
end up losing,
and there are various reasons why they lose,
one of which is what I will explain today,
the "invisible mismatch of sensations."
This invisible mismatch of sensations
is our perception of changes in investment funds.
Generally, we tend to base
our judgment of the amount of money on our
own living standard.
A clear example is
the monthly salary, which corresponds to that.
To illustrate with an example
a company employee earning 400,000 yen per month starts investing.
If this person earns 200,000 yen in profit in stocks or forex in one day,
how would they feel?
If in one day they could earn half of the salary they receive every month,
everyone would have numb senses.
Most likely,
they would think,
"Is investing this easy to make money?"
After repeating such experiences several times,
this person’s money management collapses.
At this stage, they had simply bought or sold a lot,
and earned a large profit, but
the person does not notice this.
And they become fixated only on how quickly money fluctuates,
eyes drawn to the speed of change.
Even worse,
they also stop seeing the losses.
Thus, this person continues investing
in a state of fund management far from proper management,
the worst possible fund management.
As they continue investing and
seek to grow their funds, the most important money management
is recognized before anyone realizes its importance.
Most of the investors' funds decrease,
and they become mentally overwhelmed.
This is why 75% of investors are losing,
the reason lying deep in the invisible depths of the mind.
From now on, hundreds of millions, tens of millions of investors
will start investing anew in Japan.
For those people, first and foremost, I want them to encounter proper money management.
I hope they meet it at the very beginning.