In The Toyo Keizai ONLINE Column: How should you handle a lot of information? (Are you worried about it?)
Good morning, I am Matsushita.
Among the questions I receive from everyone,
one of the frequent ones is
“About the environment of the NY market, geopolitical risks,
exchange rate fluctuation factors, and various information
that can sway you,
which ones are important?
How should I handle them?”
that is,
When I conduct individual instruction,
there are people who bring notes or diaries that are filled out every day.
As for the answer,
most of it is unnecessary.
Basically, I am a technical trader who
checks various markets and stock charts to
perform environment recognition, entry, and exit judgments.
Even what I teach is
basically technical trading,
an investment.
Technical trading gains an edge by confirming and validating
past charts,
a statistical form of trading, and past charts
embody all events and environments at that time.
Therefore, I do not pay attention to all external factors and information.
If you were to trade while considering the various external factors mentioned above,
that would be a method of trading and dealing with it through fundamental analysis.
However, to be clear,
individual investors cannot win by fundamental analysis alone.
You must read the charts and include technical analysis elements in order to win.
Rather, it is ideal to primarily use technical analysis and
use fundamental analysis as a subordinate tool.
If you adopt this mindset, external fundamental environments and the information
that are constantly streamed as various news items
are merely noise and background music (BGM).
Adopt only the BGM that is useful to your investment and
block out and ignore the noise.
When you think this way,
there are many noises in the world that are completely worthless to you.
Please avoid being swayed by such noise and create a comfortable investment environment.
So that you are not swayed by that noise,
please create a comfortable investment environment.
