An Investment Column Published on Toyo Keizai ONLINE: A Straightforward, Center-Stage Bet

Good morning, this is Matsushita.

Investing is about making a bold move in the core, whether in stocks, FX, commodities,

or even in cryptocurrencies.

When you phrase it like this, it sounds a bit like baseball, but

the nuance is a little different from baseball.

Investing is about taking a certain price range, visible on the charts, and turning that move

into profit through those price movements.

In other words, unless there is a certain range, investors cannot make a profit.

The price range tends to expand the longer the time horizon is.

If you look at weekly or monthly charts,

In other words, when you see weekly or monthly charts,

there are always long and large price ranges there.there are long and large price ranges that exist.

Prices form a low (valley) at times and continue to rise.

After continuing to rise for a while,

they form a high (peak) somewhere,

and then start to fall again.

In this sequence of price movements,

there is no need to buy at the valley or

to sell at the top of the peak.

Between the valley and the peak there is a long, sustained ascent.

This is precisely the core middle.

Recently, the Dow Jones Industrial Average plunged sharply,

and the Nikkei Stock Average also dropped sharply.

Please look at the monthly charts of these two indices.

Both were at the top of long, substantial rises.

There is no need to sell at the peak (to lock in profits),

and I doubt anyone would want to buy at the peak either.

Investment is about aiming to capture the price movement that exists between the valley and the peak,

the exact middle of the range.

This is summarized in a market adage as,

“Give up the head and the tail.”

If I rephrase today’s newsletter style,

it would be,

“Give up the valley and the peak.”

Which exact middle of the stock you’re considering will you take as profit?

If you can see that clearly, your profits will rise.

From now on, let’s trade in the exact middle.

More than anything, it’s cool, isn’t it. (laughs)