[Summary]
Bearish wanting to buy Bullish wanting to sell is an investor's psychology where the true feelings and statements are opposite.
Bearish people who want to buy and bullish people who want to sell tend to fail not because of a lack of knowledge itself, but because they end up justifying their hasty decisions later.
In actual investing, the first step is to read comments on social media and bulletin boards as position talk. However, we cannot overlook the fact that it is easy to use other people's words as trading material.
In this article, we will organize the bearishness you want to buy and the bullishness you want to sell not as "knowledge" but as steps to check before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.
First, distinguish between bearish people who want to buy and bullish people who want to sell.
When looking at bearish trends you want to buy and bullish trends you want to sell, first separate 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. A bearish desire to buy or a bullish desire to sell 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.
Situations where it is easy to fail with bearish wanting to buy and bullish wanting to sell
If you want to look at bearish patterns that you want to buy as failure patterns and bullish patterns that you want to sell, 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.
Checking the following points will make things a lot easier.
| Axis to check | Looking at it as a bearish desire to buy or a bullish desire to sell |
|---|---|
| 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
Bearish people who want to buy Bullish people who want to sell don't only stumble when they lack knowledge. 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 a bearish sign that you want to buy or a bullish sign that you want to sell.
- Don't mix your own holding period with a time frame that matches the bearishness you want to buy and the bullishness you want to sell.
- 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 just one correct answer based on whether bears want to buy or bulls want to sell. 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
Bearishness you want to buy Before using bullishness you want to sell as a basis for your actual decision, check at least these five things.
- Can you explain in one sentence the purpose of looking at the bearishness that you want to buy and the bullishness that you want to sell?
- 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 confirming the bearishness that you want to buy and the bullishness that you want to sell is not to act faster, but to reduce unnecessary judgment errors.
Summary
A bearish desire to buy and a bullish desire to sell are materials for organizing your 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 bearishness you want to buy and the bullishness you want to sell.
- 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. Bearish wanting to buy and bullish wanting to sell should not be used as words to rush into making a decision, but should be treated as a tool to pause before buying or selling.