Column published in Toyo Keizai ONLINE: Evidence that profits are increasing

Good morning, this is Matsushita.

If, for the sake of argument, there were

“evidence that profits are increasing,”

would you want to obtain it?

Actually, there is “evidence that profits are increasing.”

That is your daily capital curve.

When you are investing,

the overall amount of your investment capital fluctuates

due to daily market values and settlements.

By displaying it as a line graph,

if you look at the trend of your daily fund curve,

there you will see the “evidence that profits are increasing.”

If this fund curve gradually rises over a long period of time,

it can be said that you are likely to continue making profits in the future.

.

Conversely, if this fund curve

falls with a downward slope,

it can be said that you are likely to incur more losses in the future.

“Evidence that profits are increasing”

is the fund curve resulting from the trades you have executed,

the capital curve.

When teaching investing, I say

1. Keep an investment diary

2. Keep a record of trades

3. Track your capital curve

.

Many investors only check the numerical investment funds on their brokerage account pages

and display them as a line graph,

without visually recognizing them.

In this case, even if they realize that “capital is decreasing,”

the daily stimulus is weak and does not reach the brain,

and trades are repeated somewhat aimlessly.

However, by confirming your fund progression with a daily line graph

and if it continues to decline,

this information becomes a strong stimulus

and conveys motivation to the brain.

“This is bad. I must do something.”

Daily (or monthly) checks of the capital curve have great meaning and effect.

They initiate actions to reduce losses and increase profits.

Investors who are profitable visually track their capital movement with a line graph.

Make it one of your investment habits as well, and

eventually obtain your own “evidence that profits are increasing.”

please acquire it.