“Featured in Toyo Keizai ONLINE” Repeating strange conversations

Good morning, this is Matsushita.

The thinking of individual investors is

very strange indeed.

I have been teaching investment for 12 years now,

and during this time I have felt that sense of discomfort continuously.

Investors who participate in my seminars

ask, “How much profit can I make from stock investing or FX?”

In response, I advise,

“First, let’s avoid losing money. When you can do that, let’s plan

to achieve about 10% profit annually.”

I advise accordingly.

At this point, almost everyone says disappointedly,

“Is that the extent of the profit?”

In a moment,

they say,

“What you have achieved so far,

how much profit have you made up to now?”

I ask.

Even in response to this question,

almost all investors

say, “So far I have been losing money.”

Do you notice the strangeness of this conversation?

Investors who have been losing money until now

are saying that “a 10% annual return” is not enough.

They themselves have not achieved 10% annually,

and yet they have been reducing their funds...

In this way, individual investors

dream of enormous profits that seem almost delusional,

and continue to reduce their own capital.

First, don’t lose money.

Manage losses and earn small profits.

Without this mindset, reaching profits is very difficult, as history shows.

I will never say that

“Investing is not profitable.”

Investing can be profitable if you take on larger risks.

To earn big profits,

you must first

learn and master risk control.

Those who cannot control risk,

in order to earn large profits, or while knowing nothing at all,

if you take on large risks, your funds will be lost in no time.

Reflect on your own past gains and losses,

and first determine what you should aim for,

then face it and reassess.

For more than 11 years,

I have continued to be perplexed by these strange conversations.