Column featured on Toyo Keizai ONLINE: How to make big profits?

Good morning, this is Matsushita.

How much profit would you like to make from investing?

100 million yen, or 10 million yen annually with 100% annual return?

In any case, if you’re going to invest,

you want to make big profits, right?

I agree.

Since you’re taking on risk anyway,

in the end, you want to profit greatly, don’t you?

However, that is “in the end,” and

it isn’t so easy from the start.

Reality is harsh, and 80% of investors in the market

cannot make a profit.

This 80% cannot make even a single yen of profit,

so the number of people who can profit greatly decreases further,

and it becomes a narrow gate.

Most investors misunderstand the idea of making a big profit.

They think that becoming good at trading is necessary to make big profits.

To make big profits,

they think you need to become good at buying and selling,

but that’s not true.

To make big profits,

you don’t need to become good at trading,

or obtain an incredibly winning rule

; you simply need to take on large risk.

Taking on large risk is all that is necessary.

In commercial terms, only by “going big” can you

make big profits.

Because you misunderstand this point,

most people cannot make big profits, and

continuing to profit by taking big risks is very hard, so they fail.

If you take on large risk,

you will become more afraid of trading.

With even a small fluctuation in funds,

unrealized losses grow large,

and the drawdown when you cut losses becomes deep.

Even if you take on large risk and make big profits,

the big profit does not come from a single trade

and therefore you will trade even larger next time.

so you trade bigger again.

In short, to make big profits,

you must continue trading amid enormous fear.

Those who do not have any backing, do not understand the essence,

and especially do not understand risk,

and who do not know that there is great fear waiting there

will quickly become scared,

and exit the market after a few losses or drawdowns.

That is the price of making big profits.

Without knowing that, and being swayed by online ads,

if you think “I want to make big profits” and trade,

the results are obvious as daybreak.

Among my students, there are people who have achieved great profits that even I am astonished by,

but they kept these things secret; they faced and overcame

the immense fear and risk.

they faced and defeated these fears.

Because I understand such real conditions,

I respect and admire them.

They understand their own rules,

they refine them, trust them, and in the midst of great fear,

they continue to trade.

Their motivation is

their trust and hope in their own rules.

If you want to make big profits,

first you must profit with small risk.

By getting used to small risk and fear,

you cultivate trust and hope,

and gradually take on bigger risks.

That is what making big profits means.

First, firmly secure profits with small risk!

Big profits start from there.