Having a standard makes it easier
There is always some news that catches my attention every day. There is quite a bit of information that I consider important.
If so, you may feel anxiety or reluctance toward a mindset of “only watching stock prices.”
But there are professionals in reality who use such an incredibly simple approach. This is a glimpse into that world with a healthy dose of doubt—today’s story.
Even if you reset news and various information to zero, if you decide it’s still necessary, you can return to where you started. Trying something new in an area you have no experience in should broaden your horizons, and you won’t know until you try.
For example, imagine trading only a single stock.
There won’t be flippant thoughts about “what to buy.” By observing the up-and-down trend, you’ll come up with ideas on where to buy and where to sell. It will lead to practical questions like “what movement to aim for” and “what criteria to act on.”
Market worries are endless. The more experience you gain, the more worries seem to multiply without end.
But in the midst of daily decisions, you don’t want to create hesitation.
What solves this is,systematic trading.
You predefine a rule such as “If this price movement pattern appears, the probability of rising is high, so buy,” and when you confirm that movement, you act without hesitation.
Of course, it won’t be 100% accurate, so you also decide in advance the criteria and timing for cutting losses when things go wrong.
Many people try it because it’s convenient, but new confusion arises. The very idea of creating a mathematical formula (trading rules) is highly personal in nature.
If you proceed properly, you can freely construct a trading rule that reflects only your own sensibilities. It should feel very comfortable.
However, you should also be aware that the vector of that approach could go terribly wrong.
Now, although freedom is limited, another option is to use existing trading rules.Choose something that feels right to your senses, and “enter” the finished trading rule.
As one such method,the Midline Positioning Methodis used.
・There is a path to trade based solely on price and your own sense, without relying on information
・That might better showcase the strengths of individual investors
・However, it requires skill, and there is a downside in that it can be prone to fluctuations
・In that case, it’s okay to use mechanical trading rules
■Stock Investment [Tiger’s Den] (Hayashi Investment Research Institute Channel)
On Friday, April 8, I uploaded the latest video.
Stock Investment [Tiger’s Den]
Stock Investment [Tiger’s Den] “Buying Cheap” Alone Won’t Make You Profitable in Stock Investment
【Millionaire Trader Trading Techniques Investment Methods Investment Skills】
In stock investment, it is explained that you make money by “buying low and selling high.”
But the part that distorts our behavioral image is the initial “buying low.”
Why is that? What is the correct way to think about it!
■YouTube Channel Market Scramble
Tonight, the latest video from Market Scramble will also be released.
Please watch it at the URL below. Enjoy!
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