“How to win in a stagnant market” column published on Toyo Keizai Online

Good morning, this is Matsushita.

The current Nikkei Stock Average is trading within a very narrow range, with a fluctuation of less than 1,100 yen since the end of December.

From my checks,

this phenomenon has occurred only three times in the 23 years since 1993,

and this time is the fourth occurrence.

The previous three abnormal markets

were followed by surprising price movements,

so it would be interesting to check them once.

Now, when such a consolidation market

appears, how should one trade to

win? I would like to think about this method.

That method is

“don’t force trades.”

It may sound disappointing to say “don’t trade” after listing a method to win.

However, in reality, many individual investors

end up making forced trades even in a consolidation market,

and as a result, often lose their capital.

If you are losing capital due to repeated forced trading,

not forcing trades leads to not losing capital = winning

as a result.

Investors whose gains are not stable tend to

keep trading on impulse.

However, if the market does not move,

there isn’t enough price movement for us to gain from.

In that case, a waiting tactic is the way to go.

There is a market adage that says,

“To wait is also part of the market.”

This is not mere chance or fantasy.

In your investments,

create a period of “doing nothing, waiting.”

Doing so will make you win even more than now.