"Why do you think people end up buying at high prices?" is published as a column on Toyo Keizai ONLINE.

Good morning, this is Matsushita.

Next month, in order to hold a seminar for a new project,

I have been refining its content and creating materials every day.

The reality is that 80% of market investors incur losses

and I have identified the overwhelming reason for these losses,

and I am determined to overturn it.

When you face the fact that you are losing,

the cause is a simple phenomenon where losses

exceed profits.

And since losses are greater,

it means you are buying at high prices and selling at low prices.

This is something important,

so I will write it again.

Many market investors

are buying high and selling low.

There is a market adage that

says,

“Buy low, sell high.”

Until now, it was a common notion,

and I even thought it might not be a saying at all,

but since most people cannot do that,

if they cannot achieve it,

then it can be called a proverb.

What you should be careful about is,

even if you make profits 100 times,

if one loss wipes out those 100 profits

the investment is a loss.

That is why you need to determine the reason

why you are buying high and selling low,

the cause behind it.

And the causes are these two:

1. You don’t know the buying opportunities, so you overpay

2. You don’t know the exit, so you can’t take profits,

and losses become large before you close out

In short, you simply lack proper understanding of entry and

exit.

If you think about this step by step in order,

the reason many investors lose is simple,

and therefore what you need to do is simple as well.

Deepen your understanding of entry and exit

and improve your accuracy.

If you do, you will start to win.

Please take a moment to review your own entries and

exits.

The cause lies there.

Once you know the cause, fixes are not so hard.

It is not difficult to correct.