"Do you know that even the adjusting price movement is actually a chance?" on Toyo Keizai Online column is published

Good morning, this is Matsushita.

There are two kinds of price movements in the market.

When you hear that, you might think of Up and Down.

Today, that is not the topic, but rather the trend and the pullback (correction).

A trend is price movement that moves in one direction with momentum.

In contrast, a correction is price movement that lacks strength and direction.

Many individual investors, even if not consciously aware of it, think that trends are movements that generate profits, and corrections are movements that do not help.

However, this is a somewhat disappointing understanding.

A correction is movement in preparation for the forthcoming trend, and it will eventually generate profits.

Therefore, corrections are actually opportunities as well.

In the market, trends and corrections appear repeatedly.

And by analyzing a certain part of the chart, you can tell whether you are in a trend or in a correction.

If a trend is currently occurring in front of you,

you can profit by trading in the direction of that trend.

If there is no trend in front of you and you are in a correction,

you can analyze when and in which direction the next trend will occur,

and prepare for the opportunity by waiting.

Right now, there is a clear meaning to the price movements in front of your eyes, and once you know it,

you can profit from it.

A trend is an opportunity.

And a correction is also an opportunity.

Differentiate between these opportunities and

profit from trends.