The advantageous "limited"

“Only now,” “XX limited,” and “the rest of the month” are words that tend to trigger a reaction. Is it because there is a notion that you will gain, or that you will lose if you miss out? But I think that is actually how it is. People who are highly perceptive and calm do not buy unnecessary things, use limited opportunities to obtain what they need at a cheap and advantageous price.

In the previous<連載その1>, I stated, “Let us adopt a mindset of a trading method.”

However, for those who started by trying to obtain predicted information for individual stocks, the “trading method” that requires several steps to reach the final buy/sell decision can feel heavy. There is no sense of excitement, and it feels troublesome.

Lacking enough of an approach of trading methods or techniques... even while thinking this, they cannot take the plunge.

Rather than thinking too grandly, how about incorporating a little sense of excitement with the concept of “limited” staying? I promise it will become a stepping stone toward independence such as method, trading method, and your own value judgments.

What to limit, for example, is the stock itself.

If chasing just one stock is too tough, narrow it down to three or five stocks.

The idea of worrying about which one to buy and others’ forecast information fades, and you can have a free image of “which one, at what timing, and how to buy/sell.”

Not only buying, but it is also easy to imagine a “selling strategy” aimed at a drop, and in the buying strategy you will start to consider “closing sell” as a set, which naturally fosters the concept of “fund management.”

Because it is not imposed from outside but pursued by oneself, there is excitement at every turn, and high-quality thinking should continue to evolve.

The idea of limiting timing is also important.

If it is difficult to limit stocks, you can limit the timing only.

For example, Japanese stocks tend to hit a low in autumn or year-end. If you focus on this, it leads to a strategy like “pick 100 solidly managed companies and buy them at autumn/year-end lows, then sell in spring.”

“What to do if they rise sharply from autumn to year-end”

“If they fall toward year-end but seem likely to fall further, what then?”

In this way, you consider concrete strategies such as the timing and quantity of when to take action, and even whether to act at all, shifting from a reckless “what to buy!” style to a higher-level mindset that adjusts ON and OFF.

There was a strategy person who bought during a crash when market participants were terrified. While prices were falling sharply, they calmly bought more.

Because it requires very limited conditions, opportunities to act only come once every few years.

Then, during normal rising and falling periods, in other words in peace time, you end up with idle time. Consequently, you tend to incur losses in a way that lacks conviction.

If you could earn several times profit only once in a few years for a short period, you could rest afterward, but trying it makes waiting painful. I understand this well.

Therefore, a strategy that involves higher-frequency trading is more realistic.

That said, rather than taking permanent positions, I think the standard form for individual investors is to be able to reduce or increase positions and take breaks, with the basic image being “a few times a year.”