The simplest fundamental analysis

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Series: "Trading Philosophy" …… 21

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This morning, I came across proud news.

"Japan, 2nd in the world for 15-year-olds"

OECD's international assessment of 15-year-olds' ability to solve problems by collaborating with others—Japan ranks second in the region and first among OECD member countries.

(From the Nikkei,Click here for the original article!）

Every day I receive a lot of information and think about the future of stock prices.

However, in my haste to reach conclusions, I tend to rely on "unseen fundamental analysis."

Sometimes it might be best to simply discard fundamental analysis entirely.

I basically trade based on this idea as well.

In the stock market, people from all over the world want to make money—even if only a few people can profit. This is the concept of the “unspecified multitude.”

There are beginners, but there are also institutional investors who analyze vast amounts of data, so I assume that a lot of the latest information is continually "priced into the stock price."

To put it plainly, it goes like this.

"Even if I don’t think about it, smart professionals analyze and trade, so if I think the current price is a fair valuation, that’s enough, right?"

I don’t judge whether the current price is overvalued or undervalued.

Instead, I pay attention to how the stock price (others’ judgments) changes.

I think about how to respond to those changes (how to adjust positions).

Without fear of creating blind spots, embracing "watching stock prices as the ultimate fundamental analysis" and focusing on trading is the practical technical analysis.

I believe this is simple and a method individual investors should adopt, but this approach isn’t the only correct one.

In the new book "How to Fight as a Master Trader," Tadashi Honma says that you can ride the stock price reactively to news with a "zero-th" position.

That’s because he has that level of knowledge, experience, and imagination.

Even if you don’t intend to imitate, you should encounter these different value systems.

Rarely, there are things you should adopt, and above all, you can "reconfirm your own method and know your strengths."

"How to Fight as a Master Trader"

Traders Who Earn Billions II

Tomoyuki Hayashi, author　2,200 yen + tax

☆Available for sale in bookstores ahead of time (ships as available)