The heartbeat of price movement
I'll give a somewhat intuitive explanation about trading.
From my past experiences, feel it freely.
In the stance of “only looking at stock prices,” you concentrate your awareness on two things: the number of the stock price, and your own way of thinking.
The focus centers on “my sense of capturing price movements,” to the extent that you don’t truly see anything other than “the price” and “myself.” However, rather than ignoring the many market participants who move the price, in a sense you are fully considering their sensibilities and emotions.
Compare the movement of stock price indices with the movement of individual stocks.
Stock price indices move relatively consistently. Individual stocks tend to have moments of sharp movement and moments when they don’t move at all; the contrast is quite clear.
In individual stocks, there are moments of selling pressure when prices drop, and gradually the movement slows, forming a consolidation near the low price range.
Afterwards, at a certain point, when there is renewed interest, attention rises and more participants join in, and it overheats... you can feel these changes with your senses.
If you judge where to go in and out merely by looking at prices, you would be in total confusion if you try to imagine what other participants are thinking.
But you have your own emotions, and a solid “market sense” is formed. Indirectly, you are likely trying to sense the breath of other participants, actually striving to perceive it.
Ultracontinuous Trend Followingis a method that uses these personal sensations to freely buy and sell.
Freedom means that the constraint of “you must do this” is completely zero.
For example, suppose Individual Investor A and Individual Investor B both feel that a bottom has been reached. Both would buy in anticipation of a rise, but their concrete actions may not be the same.
A may actively start picking up at lows, while B may wait for clear signs of rise and maintain a zero position. Another individual investor C might plan to buy 1,000 shares but only buys 100 as a test to gauge the movement.
In this case, there is no correct answer debated. All of them are correct.
If we discuss right or wrong, it comes down to whether the trades align with“one’s own sensibility”and “one’s own method.”
However, relying on personal senses brings the concern that slippage or drift can occur.
This is the weakness inherent to the freedom of Ultracontinuous Trend Following.
To try to eliminate it, Investor D might execute a contrarian short sale of 100 shares as a test to observe price movement.
The logic is that if you feel short selling 100 shares is painful, you can judge that your own bullish forecast is correct.
It may seem odd, but it is a way to sincerely receive price movements without clinging to one's market view or actions.
Now, freedom is good, but if it becomes too free, you can become indecisive.
One approach to solve this problem is to patternize price movements and formalize the response into equations, in other words, system trading.
■Stock Investment [Tiger’s Den] (Hayashi Institute of Investment Channel)
On Friday, April 1, I uploaded the latest video.
Stock Investment [Tiger’s Den]
Stock Investment [Tiger’s Den] Will the Tokyo Stock Exchange First Section disappear!? ~ What investors should prepare for with market restructuring
【Millionaire Trader Trading Techniques Investment Methods Investment Skills】
On April 4, 2022, with the Tokyo Stock Exchange market restructuring, the “First Section” market will disappear.
The new markets will be three: Prime, Standard, and Growth.Why was the market category changed?
What moves might happen in the future?
As investors, what preparations should you make?
■YouTube Channel Market Scramble
Tonight, the latest video for Market Scramble will also be released.
Please watch at the following URL. Enjoy!!
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