An Eastern Economic Online column is currently published: The concept of optimal take-profit

Good morning, this is Matsushita.

Today is the first seminar of 2018.

Starting here, for three consecutive weeks we will have seminars andスクール (schools),

and today will be a long session of over five hours.

Many individual investors are struggling with taking profits.

One of the reasons is that, as always, the mindset is present,

“I want to take profits at the peak when the profits have expanded the most.”

This is what we subconsciously think.

But if you think about it calmly,

unless you are a clairvoyant or a forecaster,

you cannot take profits at the peak.

In other words, people inherently hold in their hearts a dream that is impossible and reckless.

This is a story that is ironic to the point of exasperation.

If you have long experience in investing,

you will eventually notice this contradiction.

Then, the true quest for taking profits begins.

Considering the essence of price movements,

there are only two approaches to taking profits.

In other words,

1. Where to rise to take profits?

2. Where to fall to take profits?

These two.

Regarding the positions you hold with unrealized gains,

you should always approach exit points from these two perspectives,

and think about them.

This is the optimal profit-taking point for you.

To reiterate, you cannot take profits at the highest, maximum

profit point.