We have received your question.
Good morning, this is Matsushita.
The video released yesterday,
“How to Break Free from the Crowd”was
received a very high level of interest, the views increased, and we have also received thoughts and questions.
One of them seemed useful for everyone,
so I would like to explain it.
The question we received was,
“Because I can’t do what was explained in the video,
and thus I don’t make profits, that’s true,
I understand that.”
Then, please tell me why I can’t do these actions.
That was the content.
I see, I understand what I can’t do,
and by understanding that I am losing money as well,
I want to know the reasons.
The reasons are clear.
1. The brain’s functioning obstructs those actions
2. Insufficient understanding of investing
For the first point, our brain has,
an impulsive system that processes information and stimuli reflexively,
and a contemplative system that processes information and stimuli after spending time to think,
and there is a thinking brain that processes it slowly.
Among these, the human brain’s history is longer for the reflexive brain to have progressed,
so reflexive systems tend to act first.
Therefore, you don’t want to cut losses,
you think trading diaries, tests, and trade records are a hassle,
you want to easily make profits without learning trading rules and sizes,
and the reflexive system of the reflex brain becomes dominant,
and you can’t perform these actions for a long time.
I lost 15 million yen,
and during the year and a half of consecutive losses, I thought carefully,
about “how can I win?”
Probably naturally the contemplative system of the thinking brain
was moving.
So for me, stopping losses, and learning trade size and
learning trading rules, writing investment diaries,
conducting past verifications, and keeping trading records
was not a hardship at all.
Because it was something to do in order to make money,
it was simply what I should do.
So I did it all.
Then more than a decade passed,
I encountered the book “The Secrets of Your Money and Investment Mind,”
and understood why I was able to implement all of those things,
and why many investors cannot implement them,
to lie in the brain’s physiology (function).
If you do not understand the brain’s physiology,
investors will not be able to win.
“I understand it, but I can’t do it,”
I’ve been told hundreds of times, but
that was a reflexive command of the brain,
so it’s not surprising.
Probably as is, you won’t be able to do it going forward.
Next, the point 2, that the understanding of investing is insufficient,
to understand investing, of course you need to activate the contemplative brain described above.
At this point, many people continually invest with reflexive reactions of the reflex brain, so they
become flustered and drop out.
Even if you study,
there is surprisingly little powerful investment information,
and you don’t easily reach the truth.
Having read more than 200 books and attended over 100 seminars, I think
that practically useful content is less than one-tenth of it.
So when you read books or attend seminars,
you should read more than 10 books and attend more than 10 times.
Now if you study real investment theory,
you’ll understand the importance of cut losses and position sizing,
and you’ll understand why that leads to profits.
Additionally, trading rules, investment diaries,
past verifications, and trade history are all tools that can lead to profits.
If you truly understand that there is a profitable tool in front of you,
I think no one would not use it.
If you cannot do this,
you still don’t understand,
and you don’t trust it.
If you understand and trust it,
the contemplative brain will work, and slowly over time
you will begin to take action.
I’ll say it again,
I have actually done everything.
And I have made profits.
Whether you understand investing and whether you trust it.
If you are losing money,
what will you trust?
Please take your time to think about it.
Be careful not to fall into the reflex brain’s trap.
ps
Understanding brain physiology, explaining it,
and teaching genuine investment theory is what Makoto Investment School does.
The online school is designed to study slowly over a six-month period,
so you will inevitably have your contemplative brain fully engaged.
Moreover, you can watch videos again and again,
dozens of times,
which further enhances the contemplative brain’s activity.
The reason I created an online school was
for this purpose.
Online School
Click here to join the FX Investment Ability Training Course.