"Being Featured in Toyo Keizai ONLINE" An awareness of "capturing stock/price movements"
Hello, this is Matsushita.
To make a profit in investing,
within the fluctuating price movements,
you take a certain portion and gain the profit from that range of movement.
In other words, to earn profits from now on, you must extract the price movement.
Have you ever viewed trading like this?
If you are going to extract a certain portion of price movement from now on,
carefully observe the price movement being considered,
and know in advance what kind of price movement exists in the market,
beforehand.
For this purpose, observing past price movements in advance
is called backward testing.
We perform backward testing to
confirm what kind of price movement you will extract next.
However, most individual investors do not perform backward testing.
They predict or imagine price movements likely to rise,
and attempt to extract price movements in the future that they do not even know exist,
which is futile.
No, there is no awareness of extracting; instead,
only the wish that prices will go up exists.
Even if the price goes up after buying,
there is no awareness of extracting the price movement, so
they only wonder how high it will go,
getting excited and fidgety, unable to take precise profits,
and after the price drags downward, they hastily take profits.
To make a profit in investing is to
extract the price movement that will occur from now on.
Think in advance about how you will extract it,
and approach trading accordingly.
Your actions will become simpler than now,
and your profits will increase.