Many people are burning through their funds with "Stock trading while teleworking"… Why?
Hello, this is Shimoyama.
“I’m actually a pretty cowardly type,
and I don’t want to take much risk in investing.”
In the case of people who say things like that, when you see what kind of trades they make,
and their past trading histories...
you might wonder, “Where is the cowardice?”
and you’ll find that they have been trading with high risk.
Trades like, “If the stock price drops even a little, it will trigger a forced liquidation, right?”
that kind of trading.
I have talked with more than 5,000 individual traders, and
this type of person is surprisingly common.
And, unfortunately, with these people,
their skills don’t advance easily and their growth tends to be slow.
Do you know why?
Because of this...
I talked about it in a YouTube video.
↓
https://youtu.be/NWP4-NGnk_M
There is something missing,
and it prevents them from growing well,
but I go into detail about it in the video.
Whether you understand this or not
will make an enormous difference in your rate of growth, so
please take a look.
Not only in investing, but in any field, this is an indispensable skill for growth.
If you watched and thought, “That was good,”
please subscribe and give a thumbs up as well.
↓
https://youtu.be/NWP4-NGnk_M
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
The number of people who have taken their own lives is decreasing
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
“The number of people who took their own lives decreased by 20% year over year in the most recent April,
the largest decrease in the past five years,”
reported in the news.
With remote work, time spent at the office decreased,
and this reduction in stress is said to be one factor.
During the pandemic, some lives were saved as well.
Even after the threat of the coronavirus subsided, many companies are considering continuing remote work,
and the trend of telework seems likely to continue across society,
which will free people from relationship stress,
and some people will be relieved.
Also, not only in relationships,
but just not having to ride crowded trains
will considerably ease stress.
By the way, when you ride crowded trains,
how much stress do people feel?
According to past BBC reports,
the stress of a crowded train is higher than on a battlefield.
There is a shocking finding like that.
(Reference: “Stress of commuting rush worse than battlefield—report”
https://japan.cnet.com/article/20077623/）
In other words, going to work every day in a crowded train
is like heading to the battlefield every day,
which is an enormous source of stress.
That is why the push for telework has several advantages.
“I can’t concentrate at home,”
“I can’t see how much work each person is doing,”
“I don’t want to be thought lazy, so I push myself too hard,”
“It’s hard to balance with child-rearing,”
and other concerns exist, so telework suits some people and not others,
which makes it clear that you can’t simply praise telework.
However, disasters like earthquakes, typhoons, and heavy rain
will happen again,
and telework will be increasingly demanded as a risk hedge for the future.
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
People burning through funds trading stocks while teleworking
＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝＝
Amidst all this, many individual traders seem to welcome telework.
In the past, you had to secretly check stock prices in the company bathroom,
but now you can openly
open the chart screen at home and trade anytime you like,
and many are happy about it.
“During work I can’t help but check stock prices,
so I have to place limit orders as a workaround,”
is a common sentiment, but there are also many who think
that being able to view charts freely at home
increases opportunities and helps people earn more,
so they believe that they can earn more.
However, reality isn’t so sweet.
While you can freely view charts,
far from gaining profits, most people end up losing money.
Generally, the profits from stock trading are inversely proportional
to the time you spend watching charts and the number of trades you make.
Many people think, “The more I look at the chart, the more opportunities and profits I’ll have,”
but the opposite is true.
The more you look at the chart,
the higher the likelihood of large losses increasing.
The more you stare at the chart,
the more losses tend to grow.
Do you know why?
Because the more you look at the chart,
your emotions get pulled, and you end up breaking your own rules.
For example,
you get anxious, thinking, “If I don’t buy here, I’ll regret it later,”
and end up holding a disadvantageous position,
or, when the price falls and you have unrealized losses,
you become excessively anxious,
and you might prematurely cut losses...
The longer you look at charts,
the more your emotions are unsettled,
and the more unnecessary trades accumulate,
leading to wasted entries and stop-outs.
Lack of perspective on the overall market direction
and being driven by minor up-and-down noises
is common for many people.
So,
if you have recently been spending more time at home and watching charts more,
please be careful.
If you are consistently profitable, that’s fine, but
if not, then it’s necessary to gather the courage
to close your computer for a while.
For me, it’s enough to check stock prices once a day.
That is my stance.
“But I might miss opportunities if I only check once a day.”
You may think so.
In reality,
there are moments you’ll regret,
like, “Oh, I wish I had checked the chart at that moment.”
However, you don’t need to worry.
Whether it was a real opportunity or not often becomes clear only in hindsight.
As Warren Buffett famously said,
“Only after the tide goes out do you see who’s been swimming naked.”
Whether it was a good opportunity or not is revealed later and is a matter of hindsight.
Moreover,
if you start saying, “If only I had done this, or that,”
the discussion never ends.
Reflection is important, but clinging to the past disqualifies you from earning in stock trading.
To repeat:
if you currently have an environment where you can watch charts around the clock,
please be careful.
Please continue watching until the end today as well.
Shimoyama Keizo
