Individual investors should be aware of the "holding risks".
Recently I haven’t heard about it much, but there used to be something called a “stock diagnosis” for holdings.
It’s where individual investors have experts weigh in on their own holdings, but since they’re already anxious, they’re asking for a diagnosis. So it’s clear that those holdings are a poor bet or a dead weight. At the very least, they are a nuisance to the asked.
Therefore, the correct approach would be to cut them quickly, but putting that aside... what do you think about “diagnosing” a stock?
The price is determined by the clash between selling (bearish) and buying (bullish) — that is the structure of the market.
In other words, opposing value systems are constantly in conflict.
For example, in recent years, the concern has been that the US-China trade war would prolong.
But the current market price naturally incorporates such concerns (it’s priced in). In the future, as conditions potentially worsen, prices may rise, and we might hear voices saying “and then...,” or they might fall sharply and we hear “as expected...”
First of all, factors that move stock prices are not limited to what is conveniently used in newspaper market analyses. The debate between bulls and bears is barren... or rather, there is a reason it is said not to even exist.
Returning to the opening topic of stock diagnosis.
To “diagnose” means to produce a universal, single correct answer. However, discussing future rises and falls or price movement from the standpoint of a diagnosis is not possible.
Nevertheless, there is a judgment based on the individual trader’s own values.
Regarding the outlook for stock prices, there is a wide range of information in newspapers, on TV, and on the internet. A common thread among them is that they “exploit investors’ anxiety.”
Even though capital flows are globalized, much of the commentary uses obscure overseas events as material to heighten anxiety about “what will happen next?” If you pay too much attention, you won’t be able to sustain yourself.
Even when the market has been rising strongly, it stirs up the same kind of anxiety.
“There is a risk of holding nothing...”
If you are a fund manager, not having a long position in a rising market is clearly a mistake. However, individual investors don’t have a “risk of holding nothing.”
Individual investors should earn their living from their primary job besides trading, and manage their assets safely while balancing their work and personal life.
Don’t be swayed by trivial words.
Individual investors should rather consider“the risk of holding”.
I feel the holdings need review, you’re busy and doing too many trades, or perhaps the trading funds are too large... Many people hold onto uncomfortable positions with doubts or a sense of misalignment, simply postponing them.
Even professional day traders who earn their living from daily trading need the adage“Pause is part of the market”to remind themselves not to overdo it.
Moreover, individual investors should have the image of “a couple of opportunities per year may be enough.” Then they can clearly block out irresponsible investment information that manipulates investors with short-term explanations.
For those who trade with high frequency like professionals, they must especially maintain a sense of distance from the market, that is“how close to the edge do you take on risk” and stay mindful of it.
■ Stock Investment [Tiger’s Den] (Hayashi Investment Research Institute Channel)
On February 25 (Fri), I uploaded the latest video.
Stock Investment [Tiger’s Den]
“Riding” refers to a technique of increasing one’s position through continued buying. Even if you can’t implement it immediately after hearing an explanation, incorporating the element of “riding” is easy. Please take a look into the professional technique of the world of “riding.”
■ YouTube Channel Market Scramble
Tonight, the latest video of Market Scramble will also be released.
Please watch at the URL below. Enjoy!!
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