Lifetime investment technique = "wave riding"
It is difficult to discuss the superiority of methods, but it is possible to judge from the perspective of what is “easy to do” or “easy to handle” for individual investors.
The method with the least constraints and easier to sustain emotionally is the “swing trading,” which focuses on price movements over several months.
At Lin Investment Research Institute,“swing trading”has been studied and information provided for decades. And“central source line positioning method”is one of the methods that tries to execute swing trading by mechanical judgment.
Now, there are several ways to classify methods, but the easiest to understand is the “period.”
In trading, the intended period is how long you aim for price movements, in simple terms, the period you hold a position.
Swing trading targets price movements over a few months.
It is not about holding stocks for long-term growth like Warren Buffett (the renowned American investor), nor is it ultra-short-term like day trading.
In swing trading, the stocks to buy and sell are basically fixed.
In extreme cases, you might target 1 stock, at most 5 or 10 stocks, and you limit the number of positions you hold at once to a small, manageable number, such as 2 or 3.
And you aim for gains on both the upside and the downside.
You buy on strength and short-sell on weakness, keeping the number of stocks small to allow for precise position management.
However, unlike special fundamental analysis-based trading methods, this is a method that seeks to ride the autonomous price movements that occur even when there are no particular catalysts, so many individual investors can practice it.
Some people work weekdays and trade on days off or in short spare moments, but I believe you should absolutely stop doing that.
There is moderate price fluctuation even during market hours, and it can feel easy to make a bit of pocket money, but day trading involves competing with a large, unspecified number of participants for very small profits.
Professional securities dealers, professional day traders, and even high-frequency trading (HFT) where computers place orders in units of 1/100 or 1/1000 of a second, are in a fierce battle.
One in a hundred individual investors may win at day trading, but the actual probability is even lower.
Unless extraordinary conditions align, you will likely keep incurring losses.
Do not venture into it lightly.
■Stock Investment [Tiger’s Den] (Lin Investment Research Institute Channel)
On January 5 (Wednesday), we uploaded the latest video.
Foundational knowledge and basic techniques for profit
【Why does it happen like that?】When you intend to buy, it rises; when you intend to sell, it falls
When you think “I might buy” about a target stock, it starts rising before you buy it... “I missed the purchase.” When you think “it’s about to rise, I’ll sell soon,” it starts to fall before you sell... “Did I fail?” “If it comes back, I’ll sell then.” We explain why these things happen and discuss coping methods (trading techniques).
■ YouTube Channel Market Scramble
We have uploaded past videos to Market Scramble.
You can watch them at the URL below.
× ![]()
