Currently published in Toyo Keizai ONLINE as a column 1000% loss and 10% profit

Good morning, this is Matsushita.

For more than 12 years since December 2004,

I have been teaching investing and there is something I find strange.

That is, people who are not making profits

dreaming of enormous profits without any basis,

and looking down on steady profits

in a bizarre atmosphere.

Meanwhile, while dreaming of increasing funds a hundredfold someday,

the funds are steadily decreasing,

and they scoff at a 10% profit.

Which side is actually winning, I wonder?

Of course, it’s the investor who steadily earns 10% profit.

However, once people hear the word investing,

they imagine a world where funds double in a year,

and sometimes tenfold,

or more.

That is not something that can be realized ordinarily.

When you take on risk and the market environment is favorable,

you may see twofold, threefold, or tenfold gains in a year, but

you cannot constantly control risk and aim to do so deliberately.

So at first, manage your funds and ensure they grow.

Next, gradually expand your risk,

aiming for annual returns of 5%, 10% and higher.

This is the correct way to invest.

The same goes for stock investing and FX.

People who know nothing

cannot suddenly double, triple, or hundredfold their funds in stocks or FX.

That is not what investing is about.

Please don’t mistake that for investing.

When I started investing 17 years ago, I was taught

that “investing is about protecting and growing your capital.”

That hasn’t changed to this day.

Rather than dreaming of a 100-fold return without basis,

manage risk and capital, and aim for 10% annual profit.

When you can realize that, you’ll notice the true power of investment,

and the next step will begin.