Those who cannot overcome the four “traps” lurking in the market will continue to lose forever
Hello, this is Gesan Shimoyama.
Are you interested in the “Shareholder Benefits Lifestyle”?
Many people invest in stocks for the purpose of receiving shareholder benefits, I think...
As for me, I don’t trade with the intention of getting perks.
The reason is I make profits purely from trading.
When you receive shareholder perks you might feel you got a deal,
but it’s better to be able to buy things you like with cash, right?
However, when paying taxes on trading profits,
I actively use“Furusato Nozei” (hometown tax donation).
From kitchenware like knives and dishes to
vegetables, rice, fruits, sweets, olive oil,
I really receive a lot of different things through Furusato Nozei.
Among them, one of the best is the “subscription box”.
It arrives when you’ve almost forgotten about it,
and you think, “Oh right, I ordered that.”
So there’s a sense of surprise and joy.
Like this, my home ends up receiving a lot of Furusato Nozei goods, but when it comes to foods, to be honest, I wouldn’t be short of them even if nothing else came.
There’s so much food that I sometimes can’t finish it alone, so I also send some to my family.
“Perks Lifestyle” might be fun, but it’s good to profit properly through trading
By the way, when delicious foods arrive in excess,
I can’t help but worry about my weight.
For someone who worries about weight, mountains of high-quality foods are
almost a poison to the eyes.
However, in my case, I use tasty ingredients and
practice a carbohydrate-restricted approach and cook for myself.
Not only ingredients, but also knives and dishes I received through Furusato Nozei,
and from fellow students at the Stock Academy School, I’ve even received a drain mat,
and I’m grateful that I have cooking utensils as well, so I try to cook myself unless I’m going out to eat with someone.
Therefore, even if a lot of ingredients arrive through Furusato Nozei,
by cooking myself I can manage my diet, and use it in a positive direction.
When dining out you can’t really limit carbohydrates, and calories tend to be higher,
so cooking for myself and controlling what I eat is essential.
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Rapid changes are poisonous
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But I don’t force myself to reduce portions or engage in extreme dieting.
There are ways to drastically limit intake or drastically increase activity to drop weight, but
that places a huge burden on the body.
In the past, I once lost 14 kilograms in two months, and
At that time, I started feeling faint.
Moreover, strangely, the faintness began to feel pleasant.
What should I say.
It felt like my body wasn’t mine anymore, a sensation that becomes a habit.
It’s dangerous, isn’t it? (laughs)
Also, for the first time in my life, I developed “end-point cold syndrome.”
My hands and feet were cold, a feeling I had never known before.
In this way dizziness and cold sensitivity, caused by dieting, clearly showed negative effects.
Later, I ended up rebounding,
After all, rapid changes are poisonous to the body and the effects don’t last.
Losing weight gradually is best.
And now, to the main point of today, as I’ve said before,
rapid changes are harmful in trading as well.
Many people want to earn all at once and
take on risk for trading, but if you trade that way
there may be moments where you can earn quickly, but sooner or later you will lose all your capital.
If you think, “Only I am different,” you are
you are exactly the type who cannot see the risk clearly.
And you will make wrong choices.
Therefore, to help you make the right choice,
one final piece of advice.
Actually, when you are choosing, four traps are set for you, did you know?
Here are the four traps:
(Quoted from Chip Heath & Dan Heath, Decision Making (Hayakawa Shobo), p.34, published 2016-11-15)
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- Facing a choice,
but missing options due to “narrow-mindedness.”
- Analyzing choices,
but gathering only convenient information due to “confirmation bias.”
- Making a choice,
but being swayed by “temporary emotions” leading to wrong choices.
- Accepting the outcome,
but becoming overconfident about future events.
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How about that.
You may feel there are some points that apply to you, but
First of all, many people cannot see the options correctly when it comes to trading.
In trading, the options are ultimately
“Buy,” “Sell,” or “Do nothing.””
But many people overlook the option “do nothing.”
(Narrow-mindedness)
Also, when you decide to buy, you tend to focus only on information that confirms rising stock prices,
due to “confirmation bias.”
Seeing prices rise rapidly, you fear missing out and enter without much thought,
(Temporary emotions)
Even if you’re holding a paper loss, you may keep the belief that
which leads to bagholding without selling.
(Overconfidence)
In this way, the majority
experience
confirmation bias
temporary emotions
overconfidence
these traps, one or all, are common.
If you haven’t made a profit yet, please, when you trade,
be constantly aware of whether you are falling into these traps and trade with that awareness.
In particular, to avoid being swayed by the momentary movements of the chart,
please take care.
With that, thank you for watching until the end today as well.
Keizo Shimoyama
