《East Asia Economies ONLINE column currently published》Something more important

Good morning, this is Matsushita.

Yesterday's NY Dow slipped slightly again,

We are at a crucial time.

The Shanghai Composite Index remained in a flat range.

USD/JPY is continuing to fall, in the 111 yen area.

Yesterday, in a project called a round-table discussion,

I spoke with a stock investor.

Even though it was after work on a weekday,

many people gathered.

Yesterday's theme was,

“Identifying the causes of losses and solving the problems.”

Lately I have been speaking on this kind of theme often,

because this theme hits at the core of investing.

The issue in investing is losses,

and if the causes can be identified and solved,

they will naturally turn into profits.

I want you to quickly understand this simple mechanism and put it into practice,

which is why I have been focusing on this theme.

Speaking on this theme has become more common.

Now, yesterday I had around

30 investors gather at the venue,

and I asked each of them about their own problems.

After hearing their problems,

and giving guidance on them, I feel that

everyone is paying too much attention to superficial techniques and issues,

and losing sight of the bigger picture.

When asking investors about the causes of losses,

they mention rules, stop-loss, entries and take-profits,

mental aspects, and various other things, but

we must understand and master more important things.

For example,

“Why do you think stock investing is profitable?”

“Why do you think that stock will rise?”

Yesterday, I also posed the first question

to the investors in the venue,

and only about 1–2 in 10 answered

with their own words and beliefs.

This indicates that there are cases where you may be investing in stocks without understanding why they are profitable,

simply because others around you are making profits.

If you are putting your precious capital into the market under such circumstances, and losing it every year, wouldn’t that be absurd?

If you think so,

you must be able to explain, in your own understanding and words,

“Why do you think stock investing is profitable?”

“Why will that stock rise?”

and you must be able to answer these questions with confidence.

If you can do that,

you will soon be truly profitable.

Please consider what is truly important in your stock investment.

Think about what truly matters in your stock investment.