Column featured on Toyo Keizai ONLINE: Price movements are always the same

Good morning, this is Matsushita.

I bought stocks for the first time in 2001,

and the following year I began to study technical analysis seriously,

and before I knew it, when I had advanced to a certain level of mastery,

I understood that “price movements are always the same.”

This is not an allegory,

the price movements that truly occur in the market

are always the same.

Furthermore, the behavior and results of investors surrounding it

are always the same as well.

Whether in the stock market,

in FX, or in commodity markets,

if the price movements and investor behavior are the same,

I will also continue to act in the same way.

If I do so, I can keep earning profits.

Investors say, “This year is different,” or

“Now is abnormal.”

Of course I also use those expressions,

but if you take a broader and longer view,

the market always moves in the same way.

“The price movement that will occur from now on

is a movement that occurred somewhere in the past.”

These words were left by Jesse Livermore,

the world’s greatest speculator,

more than 100 years ago,

Over 100 years ago it was known that it is “always the same,”

and even 100 years later I say likewise that

“it is always the same.”

Therein lies the truth.

The price movements after Golden Week in 2017

will be movements similar to those that occurred somewhere in the past,

in the past.

If you can infer and analyze where that is,

there lies a chance for profit.

That is how I have earned profits.

Technical analysis makes that possible.

Fundamental analysis is, of course, useful as well.

“Price movements are always the same.”

Do not forget this, and link it to your profits.