[Summary]
Waiting for a return but no return: In a weak market, the stock may not return even if you wait for a sell.
Waiting for a return and not returning is not only a way to read market prices, but also a good way to check where you tend to get impatient.
In actual investing, the first step is to manage losses without expecting too much of a return after a bad news event. However, it cannot be overlooked that all temporary declines are treated as full-fledged declines.
In this article, waiting for a return and no return is not "knowledge", but a step to check before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.
Waiting for the return, without returning, to separate first
When looking at Waiting for Return and No Return, first determine what you want to judge. The information you need will change 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. Waiting for a return or not returning is not enough to make 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.
Waiting for a return, no return, and a gap in emotions
If you are looking at waiting for a return or no return as an investment psychology, 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 | Waiting for return and watching without return |
|---|---|
| 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 while waiting for a return. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- Record your feelings of impatience and relief when you see no return while waiting to return.
- Write down the same number of reasons why you want to buy and reasons why you don't.
- Wait a day before making decisions after unrealized losses or sudden rises.
- Reduce trading amounts on days when emotions are strong
The important thing here is not to settle on just one correct answer, such as waiting for a return or no return. 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
Please check at least these 5 things before making a decision whether you are waiting for a return or not.
- Can you explain in one sentence the purpose of waiting for a return and seeing no return?
- 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 for non-return while waiting for a return is not to speed up the action, but to reduce unnecessary judgment errors.
Summary
Waiting for return and no return are materials for organizing investment decisions. Even if you read it as an investment psychology, if you treat it as a standalone buy or sell signal, your judgment will be inaccurate.
The points to keep in mind are as follows.
- Decide the purpose of seeing no return while waiting for return
- 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. Waiting for a return or no return should not be used as words to rush a decision, but should be treated as a tool to pause before buying or selling.