“A column now available on Toyo Keizai ONLINE!” Ensuring safety in investment

Good morning, this is Matsushita.

The sincere wish of many investors is,

“I want to make a lot of money quickly and safely.”

That is what they want.

I think so too.

However, due to the characteristics of financial markets,

such investments do not exist.

Nevertheless, if you narrow each of the above wishes one by one,

it is not impossible to achieve them.

Among the three elements of fast, safe, and large profits,

the most urgent wish is

“safety.”

I believe that is the most difficult to achieve.

Because investment is an act of predicting future results,

and there is no guarantee of future events.

However, there is no completely safe investment,

but it is possible to manage investments safely.

Many investors do not realize this,

and today they still step into risky investments,

whittling away their funds in fear and anxiety.

I will write about how to carry out safe investments.

It can be achieved with a simple one-word.

“If you don’t understand something, don’t do it.”

That is all.

If you don’t know whether you will make a profit, you won’t do it.

If you don’t know whether it will go up, you won’t buy.

If you don’t understand why stock prices fluctuate,

you won’t engage in stock investments.

If you don’t understand why currency prices fluctuate,

you won’t do FX trading.

People who make profits and secure safe investments are

doing only what they understand with confidence.

Even when doing with confidence,

when you incur losses, you accept the loss gracefully.

Alternatively, only what you don’t understand,

with a small amount of capital and small risk,

you repeat waiting-and-watching trades

to deepen your understanding.

And once you gain understanding and confidence,

you gradually increase your funds.

“Do not touch what you don’t understand.”

It may sound like a fallacy, but

this is the only way to carry out investments safely.

If you dabble in the unknown,

it is dangerous.

To invest safely,

you must increase your knowledge.

After increasing knowledge, you increase experience.

In doing so, we become strong investors.

And I have become a strong investor through this.

After all, since you don’t understand,

there is no guarantee that money will grow.

For those who have repeatedly traded while ignoring what they don’t understand,

please stop trading immediately and deepen your understanding.

No matter how much money you have already lost,

if you continue trading as you are now,

you will lose all of your remaining money as well.

Money grows after you have understood.