Investors who invest over the hundred millions are looking at 〇〇, not “%”.
Hello, good evening. This is Kabutarou.
Starting today, I will switch the content of my posts to
"Investment for beginners, how to think about stock investment."
So I will introduce how to think and how to make decisions when investing.
If you are new to investing or you still haven’t been able to win as you’d hoped, please read this for reference.
【Main Topic】
Today we will explainStock prices have nothing to do with percentages.
First, there are stocks at 100 yen, 1,000 yen, and 10,000 yen,and suppose all move by 1%.
In this case,
Stock at 100 yen → 1 yen
Stock at 1,000 yen → 10 yen
Stock at 10,000 yen → 100 yen
have moved.
If you held 100 shares at that time,
Stock at 100 yen → profit/loss of 100 yen
Stock at 1,000 yen → profit/loss of 1,000 yen
Stock at 10,000 yen → profit/loss of 10,000 yen
would be the result.
In this way, even the same 1% movementcan lead to very different profits depending on the stock price.
Therefore, it’s not about how many percent moved,but how many yen it moved by,and the trading volume, should be observed.
There are many things that seem obvious but are surprisingly not consciously considered.
In stock investing, winning depends most on thoroughly focusing on seemingly trivial aspects like these.
By simply changing this mindset, your approach to trading changes significantly, so please be mindful.
On my Twitter, I share my thoughts on investing and what I feel daily, so please check that out as well.
https://twitter.com/kabu_tarou_