A column currently published on Toyo Keizai ONLINE: The rules don't change even in a crash.

Good morning, this is Matsushita.

The Dow Jones Industrial Average fell sharply again yesterday.

Confusion continues for the time being.

In response to this, the Nikkei Stock Average

is once again showing a全面安 (all-down) plunging trend.

The Dow, which showed a drastic drop of 1,175 dollars on the 5th,

has once again fallen by more than 1,000 dollars yesterday,

and investors have little time to breathe.

Looking at the Dow and the Nikkei short-term daily

candlesticks, the market’s similar

conditions are clearly visible.

However, as I have repeated throughout the year,

investors must not move by emotion.

Investing, by its nature, involves large

emotional swings, which is exactly why you should

stay as calm as possible by

managing your funds and controlling your emotions.

On the day the Nikkei fell sharply again on the 6th,

I sent out a newsletter saying that

“moving in panic leads to losses.”

https://ameblo.jp/cycletrade/entry-12350570106.html

On the first page of the Makoto Investment School’s text,

the following words are written.

“Act with a calm mind on things you already understand,

and earn the obvious profits.”

Investing involves large emotional movements.

That is why investors must always remain calm.

And always act according to the rules.

And the rules are pre-considered

conditions and reasons for action.

In that preparatory stage, you should be ready for any drop.

That is, with rules,

you can move based on the pre-prepared

conditions and reasons even amidst a crash.

Also, just because a crash occurs

does not mean the rules change.

That is what the rules are like.

Prepare rules that allow you to move no matter what drop comes.

Please prepare such rules.

For those experiencing this crash for the first time,

recognize that “there is always a possibility of a crash in the market,”

and from now on, make sure to prepare rules.

Crashes may seek a calm point, but

they are far from over.

Let us manage our funds properly.