Isn’t it strange that it’s published as a column on Toyo Keizai ONLINE?
Good morning, this is Matsushita.
As part of my work, I answer questions from individual investors all year round and provide guidance.
Yesterday as well, while answering a question, I gave the same advice as always.
That is,
to have a clear reason for your trades.
Many of you reading this newsletter are experienced in investing and are daily trading some kind of security.
Regarding those trades,if I were in front of you and asked,
“What is the reason you chose that stock?”
“What is the reason for the price and timing you chose?”
“What is the reason for the trade size you selected?”
“Where will your stop loss and take profit points be after this?”
If you could answer all of these clearly,
there would be very few people who could do so.
When I ask, “Are you making a profit?”
moreover, 75% are not profitable.
Isn’t that strange?
Your stock-picking reasons are vague,
your buying price and timing are vague,
your trade size is decided somewhat vaguely,
you don’t see clearly where to set stop losses or take profits.
You continue trading without a clear picture.
By continuing such trades, your money is decreasing.
And you still trade today.
When you read this, you might think, isn’t that strange?
If you think it’s strange,
pause your trading for a moment and
let us study it.
Study how to choose stocks,
study how to choose buying prices and timing,
study how to decide trade sizes, stop loss points, and take profit points.
.
It may seem bothersome, but
if you think it’s bothersome and you don’t start,
your money will keep decreasing—so will you still say it’s “bothersome”?
When I started investing,
I was frustrated to see my money decrease, so I began studying.
About a year later,
my money began to increase.
I genuinely feel,
“Studying was worth it.”
Therefore, to the investors in front of me as well,
I want them to study too, and I have been saying this for 12 years straight.
If you think what you’re doing might be off,
start studying today.
I am always here to teach you.