[Erratic COVID-19 Market] The Most Important Mindset to End with Profit
Hello, this is Shimoyama.
As always, the market remains unstable.
There are times when it swings greatly,
and in order to survive such a rough market
what kind of mindset should we face the market with?
Today I will share on such a theme.
Of course investment techniques are important, but
if your own mindset while using them is inappropriate
you won’t just fail to make profits; you may
be plunged into the depths of ruin.
To help you get through this volatile market,
I’d like to share something you should not forget.
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
The Impressive Jojoen
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
Before talking about the market, a brief preface.
In a mood of self-restraint, recently, many people have
stayed at home as much as possible and
have been refraining from eating out, I think.
Being unable to move freely inevitably causes
a buildup of stress, doesn’t it?
In my case, I tend to stay at home anyway,
so it’s relatively normal for me, but still there are times
when I want to go out and eat something delicious.
For example, there are moments when I want to eat meat at Jojoen.
There aren’t that many places I remember being impressed the first time,
but the impression Jojoen made when I first ate there
still remains in my memory today.
Jojoen is, for me,
a restaurant with a special place in my heart.
The first time I went to Jojoen was during my college days.
A director from a TV station took me there.
Previously, on TBS-affiliated network
there was a program called
In the romance project
“Future Diary,”
many people may know the show,
but in fact among its segments was one called
“CM Tokiwaso”
As with Osamu Tezuka, Fujiko Fujio,
and other renowned manga artists who were said to be drawing at Tokiwaso,
a group of people were gathered to create commercials.
“Why make commercials?” you may wonder,
but when watching TV
you think,“I could make a commercial like this, too.”
I realized there was a tendency to look down from above, and thought so (laughs).
While watching TV commercial programs,
I often felt, “Something’s missing in this,”which led me to apply to the “CM Tokiwaso.”
I might have sounded overly confident,
but before I knew it I passed the screening rapidly and
ended up appearing.
Back then, the director
said,
“Please take me to Jojoen.”When I asked,
At Jojoen, in my first time there,
I was impressed and thought,
“Ah, this is truly delicious.”
By the way…,
my second Jojoen was when I was 25,
and at that time the president of the company I worked for
took me there.
He ordered the “Special Loin,” and it was unbelievably delicious.
“What is this, it just melts.”
I recall thinking.
On those TV gourmet programs you often hear
the phrase, “it melts in your mouth.”
I realized that
this is what it means.
Even now, more than 15 years later,
the moment I truly felt “this is delicious” remains vividly remembered.
And there are times I still crave it.
But on the other hand, humans get used to things,
and after eating the same thing many times,
the sense of awe fades.
After I started making profits in stock trading and could eat out without worrying about money,
regretfully, the excitement I felt thenhas diminished to what it is now.
Of course, the food is still delicious.
Making money is important, but the more you earn,
the higher the bar becomes for what counts as awe.
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
The Danger of Profit Becoming Normal
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
Now, the preface is long, but
that “familiarity” is the theme for today.
You probably realize that “familiarity” is a major foe in stock trading,haven’t you?
Let me tell you about a student from the stock academy.
What we teach at the Stock Academy
is not technical analysis nor fundamental analysis.
We divide funds into five parts and use margin trading
to hold long and short positions,
and by balancing those positions
continue to generate profits.
Fundamentally this is a method that does not rely on stop-loss and is quite unique.
Age, talent, or experience do not matter,
so long as you can follow the rules properly,
eventually it becomes natural to earn a profit for the year.
However, there is a small trap here.
When profits become normal and you get used to it,
these thoughts begin to bubble up.
“10% or 20% annual return is not enough.”
—
Annual returns of 20% are among the world’s top levels...
and even those who had no profits before
often start saying that.
Familiarity changes people.
And when such greed arises,what happens?
They break the rules and begin taking reckless trades.
They take bigger risks to push profits further.
Soon enough, sooner or later, there will come a day of big losses.
Profits that you carefully built up can vanish in an instant…
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
When profits become familiar, people’s desires explode.
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
Lately, there are times when the market moves a lot in a short period.
If you’re lucky, you might suddenly obtain large profits in an instant.
If you ride the wave, there will be moments when your funds grow rapidly.
But when you secure big profits and become used to them,
people’s greed explodes.
The feeling of “I want to earn more and more”
becomes uncontrollable.
Because you have a stash of profits,
you think, “Even if I lose a little, it’s fine.”
Emotions grow large,
and you start taking bigger risks, disregarding drawdowns.
This returns you to square one.
Losing profits you’ve worked hard to earn is obvious to see.
To summarize again,
the main message today is:
be especially careful when you become accustomed to profits,
that is, don’t let familiarity mislead you.
When you’re in a good mood or feeling high
and you’re about to lose control of your emotions
or when you feel too confident,
one option is to step away from the market for a while.
That said, it’s often hard to learn these lessons without suffering.
I hope the information shared today
will contribute to your profits.
Thank you for watching until the end today as well.
