[Summary]
The Monkey and the Rooster make a fuss is a saying that indicates that the Year of the Monkey and the Rooster are prone to turbulence.
If you use real-life examples, it will be easier to see the difference between situations in which it can be used and situations in which it is difficult to use.
In actual investing, the first step is to be prepared for increased volatility. However, it cannot be overlooked that if only the noisy materials are followed, the buying and selling will be rough.
In this article, I will explain how to make a fuss, not as "knowledge", but as a procedure to check before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.
The first thing to be divided is the monkey and the rooster.
When looking at Monkey and Rooster, first decide 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. Even though it makes a lot of noise, that alone 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.
Consider the case of the monkey
If we look at the story of Monkey and Rooster as an example, we first have 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 in the Monkey Rooster |
|---|---|
| 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
The reason you get stumbled by making a fuss is not only when you don't have enough knowledge. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- Focus on one scene where Monkey Rooster works well.
- Even if the price movements are similar, if the background is different, they are treated as different things.
- View not only successes but also failures using the same criteria.
- Check if you can reproduce it with your own amount of funds
The important thing here is not to just make a fuss and decide on one correct answer. 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 using Mongolia as a basis for making an actual judgment.
- Can you explain in one sentence the purpose of watching Mongolia?
- 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 Monkey Rooster is not to act faster, but to reduce unnecessary mistakes in judgment.
Summary
Monkey Rooster is a material for organizing investment decisions. Even if you read it as an example, your judgment will be inaccurate if you treat it as a standalone buy/sell signal.
The points to keep in mind are as follows.
- Decide the purpose of watching the Monkey Rooster first.
- 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 "monkey" as a tool to pause before buying or selling, rather than as a word to rush into judgment.