“Eastern Economics ONLINE column currently published” Investor ability differences become apparent during a crash

Good morning, this is Matsushita.

Yesterday's NY Dow continued to rise.

Five consecutive trading days of positive closes.

Shanghai Composite Index is showing a small rebound.

USD/JPY continues to fall, in the mid-106 yen range.

NY Gold is moving within the unchanged range.

The NY Dow is gradually gaining momentum,

and this recent crash market is gradually calming down,

as it is being recovered.

The NY Dow from its all-time high,

to the largest drop in history,

from the Nikkei Stock Average's highest in 26 years,

it dropped all at once, and stock market investors

were cooled all at once.

When looking back at this sudden drop and how it was handled,

the gains of investors and the losses of investors

became clearly distinguished.

That difference is

"whether all possibilities have been prepared in advance."

The investors who make profits are

prepared for declines, whether in a crash or a sudden drop.

That preparation is

1. taking profits through selling, 2. selling to cut losses,

3. selling again when entering anew, these three.

There is no preparation beyond these.

If any one rule's condition is met,

they will take profits or cut losses, or place a new

short entry.

However, investors who incur losses

have inadequate pre-preparation,

and panic, thinking, “I didn’t expect it to fall this much so quickly,”

and wonder what to do,

relinquish unrealized gains, and expand losses,

take hedges, or indiscriminately short sell.

By observing the actions of both sides and their reasons,

the difference between profit and loss in outcomes

will become clear.

After confirming that,

please reflect on which type of investor you are,

and where you stand.

From this, you should understand what to learn next

and what to prepare.

Please remember.

The market moves far beyond our predictions or

tiny imaginations, and can exhibit moves we never expected.

No one could have imagined that the NY Dow would drop by $1,600 in one day,

in such a short time.

From the outset, it is something unimaginable and unpredictable,

so approach investment with that in mind,

and you will face investments with a clearer mind.

Doing so will make crashes somewhat easier to handle.