Move while panicking and you lose.
Hello, this is Matsushita.
Yesterday's NY Dow plunged by 1175 dollars.
In response, today the Nikkei average is
also showing a big drop of over 1100 yen.
When I woke up in the middle of the night,
and casually checked overseas markets on my smartphone,
seeing the NY Dow fall by more than 1,500 dollars,
I doubted my eyes.
The market has looked panicked since morning.
If you are a stock investor,
you may be in the midst of confusion and panic.
So here is one piece of advice from me.
From the place where you are now,
find the nearest window or entry/exit,
and immediately put down your computer or smartphone,
and look out at the scenery outside the window.
Take slow, deep breaths repeatedly,
for about several tens of seconds to a minute, slowly
look at the outside scenery.
From the window beside my desk, I can see the calm sunshine of Tokyo in February,
past the beginning of spring.
You can also see cars and pedestrians moving about.
Today, as always, production, consumption, and social activity continue.
There is no panic anywhere.
The panic is only a small part of society,
an event in the narrow world of the stock market.
Also, not all investors in the stock market are panicking
and predicting this price movement as inevitable;
there are many investors who view it calmly.
Panic is not occurring in the market; it is occurring inside someone’s mind,
or inside your own mind.
Within that panic, acting hastily will not lead investors to victory.
If you act in the middle of panic, you will lose.
“Why does it happen?”
I cannot explain clearly and precisely the reasons why.
But I understand it from my own experience.
I started investing two years ago and, every time there was a big move in the market, I panicked and acted flustered.
During that time, funds did not increase; they kept decreasing.
After learning money management, creating rules, and learning to control my mindset,
I learned not to panic as often.
Then funds increased.
After 17 years of investing,
having looked at the markets with tens of thousands of investors,
I have seen that the market is always repeating euphoria and panic,
and most investors lose their funds and disappear.
This is what is endlessly repeated in this market.
Recently, in the cryptocurrency market, euphoria followed by panic
has occurred, and similar things are
happening.
And with yesterday’s big drop in the NY Dow and
the big drop in the Nikkei average,
investors in the world and in Japan are panicking.
If you get caught in the panic,
you cannot make sound judgments,
and you cannot see things correctly.
Any action in the panic,
seen by people outside the panic, or looked back on after the panic passes,
will become an irrational action that's hard to understand.
That is why the panic continues.
Therefore, you should not be stopped by it.
○ You may consider today’s big drop as the greatest opportunity for future upsides and buy.
○ Or you may think the dip today eliminates future profit opportunities and take profits.
○ Or you may judge that today’s drop is a downturn to realize losses and cut them.
However, these actions must be pre-thought, prepared, and waited for in advance.
If your preparation or understanding is insufficient,
and this drop is unexpected or not something you have anticipated,
then prepare for tomorrow instead.
From now on, how far down will you go before you act?
Prepare for the possibility of sinking deeper and deeper,
and make those preparations.
If you cannot do this,
you will continue to panic at market movements and
lose funds each time.
Rather than moving in panic,
prepare in advance and wait,
and act with those materials and actions in mind.
The market is still likely to be turbulent.
