Who is the “good student”
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Serialized series “The Heart of the Market, the Essence of Trading” Part 29
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There is a lot of noise on the internet, but there are plenty of elements to enjoy.
I like the kids’ creative test answers (^^)
When you rearrange the letters “i, ri, nu, ne, ta, ki” to form a word... the test setter’s expected answer is “tanuki neiri,” but there is also the option “ne takiri inu”!
Even simple tests can have multiple correct answers.
There are many indicators to gauge the fair value of stock prices... but none are decisive.
If you clearly think it’s undervalued and buy, it may rise as expected, but there are also cases where it remains undervalued for a long time and it feels “hmm, strange.”
Even if it’s clearly overvalued, if there’s momentum, new participants’ buying pushes it higher and higher.
It’s a pattern where fundamentalists short-sell and get squeezed.
In the stock market, what behavior is “clever”?
When judged on a case-by-case basis, even outstanding people or professionals have surprisingly low hit rates.
The heart becomes turbulent.
To move one step forward from this situation and ascend to the next level, the challenge is what to do.
Should you desperately search for a breakthrough or shrug it off... perhaps both are correct, and you should strive to balance practicing both.
“Information that makes you think, ‘This will make you rich!’” is everywhere, but the message from Hayashi Investment Research Institute is‘A sure, personal, tested method’.
Research, and every trade, are all about a cycle of thinking after you have acted “without hesitation.” ,