Every additional hour spent glued to the monitor increases the risk of death by 5%
A bird in the hand is worth two in the bush
A bird in hand is worth two in the bush
（Proverb）
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Hello, this is Shimonoyama.
“People who sit for more than 7 hours a day
increase their risk of death by 5% for each additional hour of sitting.”
The Finnish Ministry of Health has issued warnings like this in the past.
In other words
“The more you sit, the shorter your life.”
That is the idea.
How many hours a day do you sit??
For those with desk jobs,
you may even sit for half the day.
Perhaps so.
Also, professional traders
likely sit for long hours as well.
If you Google“trader”
and search images,
you’ll mostly see traders seated in rooms full of monitors
with several computer screens lined up.
The image is of tradersusually sitting for long periods.
Generally speaking when you think of a trader
this is the exact image,
glued to the monitors,and the time spent sitting
looks evidently long.
You are trying to earn money,
to live a prosperous life, right?
But, to make money
to the point of sacrificing your life would be a mistake.
If this sounds familiar, please take care.
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What color should you make the chart?
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Now, to the main topic: about trading.
For those using multiple monitors,
displaying many indicators while trading
is common, butwhat do you think about that?
Personally, I do not recommended it.
In particular, using various colors like red, blue, white, yellow
in a colorful chartis not good.
The reason is bright colors like red tend to
guide the viewer's gaze,
and not as effectively as commonly believed.
As a result,
you may miss important signals.
Furthermore,
if there are many highly saturated colors,
you become more distracted.
Then, if there is an indicator you absolutely do not want to miss,
how should you set the color of the
lines?
There are these findings.
↓
“As a result of testing, the color that drew the most attention was surprisingly
white.
By increasing the whitespace around the information you want to convey,
and using white text on a black background
was the most effective way to leave an impact on the other party.”
Shinji Koshikawa
'The Ultra-Time-Saving Techniques to Eliminate Work Waste (Nikkei BP)'
September 2, 2019, First Edition, First Printing
P.70
This validation
was not performed on charts, but
the same idea would apply to charts as well.
In other words,
“If you want to ensure you do not miss a single indicator signal,”
then display it on a black background with white text
for best effect.
There is also a benefit that is easy on the eyes with a black background,
you know.
Well, if you have a black background with a lot of white lines
displayed,you won’t be able to see them clearly,
and it would be pointless...
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Best timing to take profits
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However, to be frank
“Ultimately indicators should be removed entirely,”
is my feeling.
If you absolutely want to rely on indicators,
I won't stop you, butyou can win without doing that.
How to win?
In past newsletters,
I've shared various things necessary to win,
and today I will again offer some advice.
First, about the concept of
“the best timing for taking profits.”
In the opening
we introduced the proverb
“A bird in the hand is worth two in the bush.”
Many of you may have heard it, but
“Something that is certain is worth more than something uncertain.
That is why you should not easily let go of something certain you have,
even when tempted.
In market proverbs, this is “Profit-taking is a thousand-strong power.”
For example
If you hold a 1000 yen long position and
the stock price rises to 1100, 1200,
you think it will rise further
and hold the position,
then the price suddenly crashes to 900,
many people have experienced this.
No one who had profits would regret,
“I should have taken profits earlier…”
If you haven’t, you probably have.
The proverb ‘Profit-taking is a thousand-strong power’ is perfect for moments like these.
However, perhaps the stock price could have risen to 1300, 1400
and kept going up.
Because cases like that exist,
you cannot simply say“If there is profit, you should take it immediately.”
That would be naive.
Many traders fall into this dilemma.
So, in the end, when is the best timing to take profits?
No one knows.
If you take profits at this timing,
your profits could be maximized,
but that is not something anyone can guarantee.
Therefore,
you should face the market with the mindset of “minimize losses for now and have profits if possible.”
That mental attitude is important.
“Can you make money with such a passive stance?”
You might think, but
many people know from experience that
a greedy mindset makes it hard to win.
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Are you considering the role of positions?
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Now,
“What should you do to never incur a loss in any market condition?”
Answer:
“Always think about the role of the position.”
Most people are not aware of this, but
when you hold a position, you always ask
“What is this position for?”
and its purpose.
“Why hold it? Isn’t a position meant to generate profits?”
You might think so, but
in my case it is different.
With margin trading, I trade both buy and sell positions,
some positions to grow profits, others as insurance to limit risk.
And I carefully consider the role of each position
and stay true to it.
For example, even if you hold an insurance position
to reduce risk,you would never
close it prematurely just because it’s profitable.
I won’t go into further detail here, but
the Stock Academy also
teaches about the role of positions,
and those who understand and implement it
are certainly profitable.
I hope this is helpful for your trading.
Thank you for reading until the end today as well.
Keizo Shimon
