November 25 (Fri): Nikkei 225 (Free viewing item: Which stocks are easy to profit from?)
Good morning☀
When I trade the Nikkei 225, I’m occasionally asked whether,
“Why do you trade a market with low volatility like the Nikkei 225?”
Wouldn’t you make more money with more volatile assets?
※Volatility (abbreviation: high volatility means large price fluctuations)
Ido not think that “high volatility equals easier profits.”
What makes a stock easy to profit from
- is the price movement speed matched to that person’s personality
- is the price movement speed matched to that person’s lifestyle
- is the price movement speed matched to that person’s trading style
I believe this is important.
I am a medium- to long-term trader, so I hold positions for weeks to months.
Therefore, it matches the movement of the Nikkei 225 to some extent.
Also, I can look at charts only in the morning and at night, so it fits my lifestyle as well?
For family-first people, this level of price movement is quite easy to handle?
There are also other reasons.
- There are many correlated stocks (Dow Jones, NASDAQ, S&P 500, etc.)
- I come from a stock background, so I feel a sense of familiarityｗ
and there are various other reasons.
Iam a single-ticker concentrated investorso I only trade the Nikkei 225.
There are various reasons for this as well, but…
“The basic principle of investing is diversification!”
“Diversify your risk!”
I think anyone who studies this topic has heard phrases like these.
However…
Is that really true?
Global stock market declines, 〇〇 shocks…
There are times when every stock falls, right?
Does diversification really save you?
I wouldn’t say “diversification equals safety.”and I think that.
And I reduce risk more effectively than diversification.
I will talk more about this another day.
※Details will be written in the “Trading Techniques.”
If you understand it properly, everyone can do it too.
Now I will move on to a explanation of the Nikkei 225.
（※From here on, market awareness is limited to members。）
