Facing techniques
For example, in the commodity futures market, the things traded are items with real demand in the real economy. Therefore, fundamental analysis is considered to have high validity.
Even in stock markets where popular elements are strong, it is natural to have the recognition that stock prices of high-growth companies have been rising in the long term, or that growth sectors could change due to U.S. policy.
The basics of fundamental analysis are“Always think based on consistent criteria”, wouldn’t you say?
However, no matter how excellent the analysis is, the extremely uncertain element of “price movement driven by popularity” cannot be denied.
Even good companies should not be bought when their stock price is in the high price range, and when it is in the low range, a slight improvement in a bad situation can lead to a large price rise.
It is essential to have the attitude of looking at the stock price itself.
In doing so, it is important not to casually consider the “level,” but to consider the trend and movement tendencies.
Gathering information and evaluating it appropriately is difficult; no, before that, selecting information is difficult. In fact, a mindset that says, “Just ignore all materials and news 100%!” can also be valid.
From the principle of technical analysis that “all materials and news are already reflected in the price,” one can ignore fundamental analysis.
Based on that, calmly compare the stock price with your own outlook (and positions aligned with it), and a practical approach to simply decide the next move is a method that avoids unnecessary confusion.
It may be hard to get into, but“Market Technical Theory”is the trading philosophy.
The methods proposed by Lin Research Institute are all“Market Technical Theory”as their basis.
Une Ridorialso,Central Trend Positioning Methodare methods grounded in Market Technical Theory.
In low-priced stock investments,“FAI Investment Method”also conducts fundamental analysis, but it uses a fairly limited perspective and focuses on price fluctuations and position management, so it is described as being based on Market Technical Theory.
First, please value the concept of “method.”
If you only look at the situation and think “up or down,” there is no concreteness.
Discard fundamental information and focus on responding to price movements that change moment by moment.
A method built on only fragmentary forecasting methods cannot be considered a “method.”
Unfounded and irresponsible fundamental information is akin to an ignorant market commentary.
In addition to forecasting methods, you need a method for position management that follows the forecast, and a money management method that treats limited funds with care while seeking efficiency.
Only when these three elements are balanced can it be called a “method.”
Once a method is established, it becomes extremely difficult to argue about its superiority or inferiority comparatively.
Trading, always,“takes a position against a price movement pattern never seen before”.
Nevertheless, you can compare and discuss the differences.
Using those differences as a basis, you can choose a method according to your likes and dislikes.
There are various criteria for comparison.
Difficulty of mastery, amount of work for preparing materials… since those criteria are also a matter of preference, you must sort out and think about them in your own way.
If you have relied on external information, considering such things may be painful, but please sweat it out in your mind.
■ Stock Investment [Tiger’s Den] (Lin Investment Research Institute Channel)
We uploaded the latest video on Wednesday, March 30.
Foundational knowledge for making money and basic techniques
【A Sour Lesson】“Remembering Highs” and “Remembering Lows”
In markets and trading, the stock price level is a major issue. It’s also common to consider past highs and past lows as references.
However, this memory can hinder correct action in practice. What kind of psychology is it? How can one take appropriate action?
■YouTube Channel Market Scramble
We uploaded past videos to Market Scramble.
You can view them at the following URL.
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