《East Asia Economics ONLINE column now published》Do not aim to make a profit

Good morning, this is Matsushita.

It's the last day of Golden Week.

Across the sea in France, it is the deciding vote in the presidential election.

Tomorrow's market is likely to move in response to that result.

I think you’ll see price movements in the markets tomorrow as well, reacting to the outcome.

Whenever I meet individual investors, I’m struck by the misconception that there is such a thing as a “winning investment” or a “winning investor,” and that people chase something entirely different.

This is an alarming reality: many have never actually earned a profit, haven’t met someone who consistently earns profits, so they don’t understand what “earning a profit” looks like.

And I always tell them that

“a winning investor is not like that.”

“It’s not about chasing profits. It’s about this.”

And I often say

“A winning investment (or investor) is not like that.

It’s this.”

The vicious cycle that people who can’t earn profits fall into,

one of the mistaken images is the idea of “trying to make a profit.”

Specifically, after entering,

they struggle to make a profit at exit,

agonizing over the exit,

in an attempt to create profit.

However, a winning investor does not do such things.

Winning investing is not about that.

Profit is not something to be forced to rise;

it rises naturally.

It may be a little hard to understand, so to put it another way,

a winning investment has a clear objective for profit, so after entry,

if the price moves as targeted, profits rise automatically, and

if the price does not move as intended, there will be a stop loss.

In short, profits and losses are not created by us investors;

the price movement—the market—creates them.

Therefore, rather than forcing profits,

profits are already present.

This is determined even before entry.

I always say

“Whether that person can earn profits can be understood by talking a little.”

There is a clear difference between investors who can earn profits and those who cannot.

Therefore, those who cannot earn profits need to become investors who can earn profits before they enter or begin their challenge.

Rather than trying to force profits,

aim to be an investor who already has profits surging.

There is a clear division.

That is why those who cannot earn profits must become profitable

before entry, before the challenge.

Aim to be an investor who already has profits.

Do not strive to earn profits;

aim to be an investor in a state where profits are already accruing,

that is the kind of investor to aspire to.

Even beginners can achieve this.