“Published in Toyo Keizai ONLINE” Stocks that rise and stocks that don’t. How do you forecast them?

Good morning, this is Matsushita.

At the stock market school held on the day before yesterday, the 16th (Sunday),

we introduced individual stocks in the chemical sector, which is currently in a favorable trend,

and the individual stocks in the banking sector, where the trend is weak,

in order, and from the chart comparisons,

we showed the existence of the trend.

Participants were surprised by the noticeable differences in price movement,

and asked,

“How can I ride this trend?”

In the stock market, at times a particular sector forms a trend,

in the currency market, at times a particular currency forms a trend,

which is quite common, but

there is no need to predict it especially.

Even with momentum trading,

or trading aimed at a turning point with contrarian trades,

by always trading with the same rules and

properly diversifying the portfolio,

you can ride the occurrence of trends at a certain rate.

However, individual investors often trade according to their emotions and

do not build an appropriate portfolio.

Therefore, you cannot ride strong, large trends forever.

Trends occur with a certain probability.

Since probability exists here as well,

to take advantage of that probability,

you need to always follow the same way of thinking and the same approach

when buying and selling.

Those who always trade with the same rules

will, after a certain period, ride the target price movement and increase their funds.

Investing/trading is not about predictions,

but about practicing the use of probability.

Please learn to always ride the trend.