[Summary]
The bottom of the tweezers is the shape in which the price stops declining near the same low price.
What makes tweezers more likely to fail is not the lack of knowledge itself, but the fact that they end up justifying their hasty decisions afterwards.
In actual investment, the first step is to check the downward support line. However, we cannot overlook the fact that it is easy to overlook the risk of support line cracking.
In this article, tweezers are not treated as "knowledge", but rather as a step to check before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.
First, separate the tweezers at the bottom.
When looking at the bottom of the tweezers, first determine what you want to judge. The information you need changes depending on whether you want to know the meaning, confirm before buying or selling, or review your current holdings.
Especially for beginners in investing, the easier the words are, the more they tend to take them as a conclusion. Tweezers are not the sole factor in making a decision. If you want to check it, it is more realistic to look at it in conjunction with fund management, holding period, and opposing materials.
Situations where tweezers are likely to fail
If you are looking at tweezers as a failure pattern, first make a narrow premise. It is important not to mix up whether you are talking about the market as a whole, individual stocks, NISA or long-term funds.
If you check the following points, things will be much more organized.
| Axis to check | What to see at the bottom of the tweezers |
|---|---|
| purpose | What do you use to judge? |
| Time axis | Which is closer to short-term trading, long-term holding, or NISA? |
| basis | Which one is more important: price, business performance, interest rates, exchange rates, or psychology? |
| risk | When things go the other way, where should you look again? |
| action | Will it lead to buying, selling, or doing nothing? |
Points that can easily cause trouble in making decisions
It's not only when you lack knowledge that you stumble with tweezers. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- Don't decide whether to buy or sell the moment you see the bottom of the tweezers.
- Do not mix the time axis that suits the tweezers with your own holding period.
- Don't increase your position to recoup your losses
- Don't make a decision just based on SNS or rankings.
The important thing here is not to decide on one correct answer based on the bottom of the tweezers alone. In investment, the meaning of the same material changes depending on the market, holding period, and amount of funds. When in doubt, prioritize confirmation over conclusion.
Checklist before buying and selling
Before using the tweezers sole as an actual deciding factor, check at least these five things.
- Can you explain in one sentence the purpose of looking at the bottom of the tweezers?
- Have you confirmed one or more countermeasures or failure conditions?
- Are you investing your living funds or money that will be used soon?
- Have you decided in advance the criteria for cutting losses, taking profits, and continuing to hold stocks?
- Are you making judgments based only on social media or short headlines?
Checklists are simple, but they prevent you from adding reasons after making a decision. The purpose of checking the bottom of the tweezers is not to speed up the action, but to reduce unnecessary errors in judgment.
Summary
The tweezers sole is a material for organizing investment decisions. Even if you read it as a failure pattern, treating it as a standalone buy/sell signal will lead to poor judgment.
The points to keep in mind are as follows.
- Decide first the purpose of looking at the bottom of the tweezers.
- Do not mix time axis and amount of funds
- Check not only good materials but also negative materials
- When using NISA and long-term funds, consider how to handle losses
- When in doubt, reduce your position or postpone it.
The more knowledge you have, the safer it seems, but in the market it can become dangerous if you use it incorrectly. It is realistic to treat tweezers as a tool to pause before buying or selling, rather than as a word to rush into judgment.