To take profit of 1,000,000 yen in a single trade
Good morning, this is Matsushita.
Do you want to take a profit of 1 million yen in one shot?
When asked like this, I think most investors would
answer "Yes."
If you can gain 1 million yen in a single take,
it's not bad.
You would probably think, “I’d like to try
such a profit-taking.”
To achieve a profit of 1 million yen,
you must conduct trades of corresponding magnitude.
For trades that yield 1 million yen in profit,
there are corresponding stop losses.
Many people imagine only the profit
and daydream, but that profit
is paired with a price you must pay in the form of a loss.
If you do not accept this loss,
you cannot take 1 million yen in profit.
If you can challenge 1 million yen in profit with a 10,000 yen loss,
anyone would take the challenge, but
in reality, that is not the case.
Trading using cycles is characterized by
losses being small relative to the profits when you are successful,
but even so, if you aim to take 1 million yen in profit,
you must at minimum tolerate a loss of about 300,000 yen.
If your win rate were a little higher and
the profit target and loss target became closer,
the tolerance for a 1 million yen loss would also become possible.
This is the reality of investing/trading.
If you always tolerate only a 10,000 yen loss,
or dream of 1 million yen in profit without any losses,
you will never achieve 1 million yen in profit lifetime.
Accepting losses and earning profits commensurate with them,
gradually increasing the tolerable loss,
then a single 1 million yen profit becomes possible.
ps
In the market, there are rare occasions
where a small loss can target a large gain in investment methods.
If you continue studying and validating,
you will encounter such opportunities,
so please start by firmly mastering the basics.