The reason only weaknesses come to the surface
My daughter muttered that she wants to try trading, so I listened to her, and she had the mindset of “I don’t want to lose even once.”
I answered immediately, “Then don’t do it.” Because unless you approach it with the premise that you will win half the time and lose the other half, your weaknesses will grow and you’ll suffer a big loss.
We need to look at weaknesses as well and accept them with confidence.
I think we must maintain our own axis and adopt a strong posture that accepts our weaknesses.
That said, it’s not about shrugging and saying “whatever happens.”
In everyday life, no one will recognize behavior that causes big trouble for others as part of your individuality.
But we don’t need to nitpick every minor flaw. We acknowledge a certain level of individuality. I think this balance is similar.
When using a method, it’s important to consciously recognize “this is a strength,” while also turning our attention to “this is a weakness.”
Every method has a main“target area”That target area itself is the method’s “core” and strength, but it always comes with an accompanying set of weaknesses.
For example, a method that targets low-priced stocks—those outside the popular range with the idea of “buy when they’re cheap”—has strengths like less downside risk and larger gains when they rise. But it also has the weakness that it can take a long time to move.
So we keep an eye on stocks outside the popular range and come up with ideas like “buy after movement starts” or “look for the moment just before a rise.”
In reality, this approach brings new weaknesses along, a kind of vicious circle.
Therefore, it is important to center on an unavoidably solid target and fortify the strengths, while accepting the linked weaknesses and seeking a compromise.
The theme is to maximize strengths to yield the greatest profit, while, at the same time, minimizing losses from weaknesses as much as possible... but the key point is not to hide or pretend weaknesses don’t exist.
Let’s consider this with everyday life’s “eating out.”
In the same place and with the same service, good-tasting food is expensive, and if it doesn’t taste that great, you choose something cheaper; that’s the principle.
We’d like to eat something delicious every time, but usually we choose something reasonable. We accept the strength of a reasonable price and acknowledge the weakness that the taste isn’t that great.
When choosing something tasty, we accept the downside of a high price, saying things like “once in a while is fine” or “it’s a special day.”
If you mutter, “It’s so expensive…” while eating something delicious, someone will say, “Then don’t come.” If you complain about the quality of ingredients for a reasonably priced meal, you’ll be told, “Then go to a more expensive restaurant.”
In trading methods, there are cases where a solid strength is present, yet only the weaknesses surface, which can magnify losses when things don’t go well.
That’s precisely the trading world’s reality, butthe root cause is often underestimating weaknessesin the first place.
■ Stock Investment [Tiger’s Hole] (Hayashi Investment Research Institute Channel)
We uploaded the latest video on Wednesday, April 6.
Foundational knowledge for making profits and basic techniques
【Is it true?】 Is contrarian investing the correct approach in stock investing
People say “Professional traders trade against the crowd,” but is that really true?
What exactly is the definition of contrarianism?
■ YouTube Channel Market Scramble
Tonight, Market Scramble’s latest video will also be published.
Please watch at the URL below. Enjoy!
× ![]()