Currently featured in Oriental Economics ONLINE as a column: The decision is already made before you trade.

Good morning, this is Matsushita.

Before buying and selling, the outcome is already determined.

Occasionally, I explain things like this

about stock investments and FX.

To put it more clearly, whether you make a profit or incur a loss

is decided before you make a trade.

Why can you tell profit or loss even before you trade?

Because profit is not something that can be achieved

by reckless trading,

but something that can be achieved by planning, checking, and aiming for it.

Specifically, by having an investment/trade strategy

that aligns with clear targets,

setting rules, and performing backtesting,

trades that are carried out lead to profit.

Unfortunately, most individual investors

do not set clear targets,

have no strategy, and always trade by intuition,

without performing backtesting.

In this state, investors have a higher potential for loss even before trading.

The outcome is decided before the trade.

I have been saying the same thing for 13 years.

Even from now, you can start preparing and taking the necessary steps

before you trade.

The more you postpone this, the longer the period of losses will be,

and the larger the amount of losses.

The outcome is decided before you trade.

To become profitable before you trade,

set clear targets and strategies,

think about the rules, and perform backtesting.

At that moment, you will become a completely different level of individual investor.

Naturally, your profits and capital changes will also change.