unserious investments lead to losses.
Hello, this is Matsushita.
Today, I would like to write about "serious investing" and
"un-serious investing."
In the world of investing, expressions like seriousness or
un-seriousness are not often used.
However, it is clear that even in the world of investing,
there exists serious investing and un-serious investing.
Serious investing means managing funds strictly,
pre-studying trading rules, and only trading in accordance with those rules,
keeping trading records, and periodically reflecting to
review and adjust the rules as needed.
This is investing with careful oversight and continual improvement.
In contrast, un-serious investing means
not considering fund management and disregarding trading rules,
repeatedly trading based on feelings or emotions at the moment,
and not reflecting on one's results.
There is a clear difference between the two.
Unfortunately, just because you engage in serious investing
does not guarantee that you will always win.
If fund management is lax and there is no edge in trading rules,
no matter how seriously you do it, the results will not follow.
In other words, your capital will decrease.
To practice serious investing, to make profits larger than losses,
and to continue to generate profits over time,
you need to create a fund management system and trading rules with an edge.
There is a certain hurdle here.
You must simply surpass it.
In contrast, with un-serious investing
there is no guarantee that profits will continue to rise.
Investing without fund management and without trading rules
even if you sometimes achieve large profits,
that is merely a coincidence, and such incidental profits
won't continue in the market.
Sooner or later, un-serious investing
will ruin your capital, and the un-serious investor
will disappear from the market.
Just because you engage in serious investing
does not guarantee that you will make profits.
However, if you engage in un-serious investing,
your capital will almost certainly be ruined.
Will you approach investing with seriousness for your own funds,
or will you approach it with carelessness?
After reading today’s article, please decide
your attitude for each day.