[Summary]
Even when you think the market is over, the market may continue to rise.
Mohamada Nari is not only a story about reading market prices, but also a material for checking where you tend to get impatient.
In actual investing, the first step is not to deny the momentum of a trend too quickly. However, we cannot overlook the danger of ignoring overheating and continuing to chase it.
In this article, we will organize Moha Madanari 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 of all, let's divide
When looking at the future, 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. Although it is not yet possible, it 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.
There is still a gap in emotions
If you want to see what's going on in terms of investment psychology, first of all, make narrow assumptions. 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 | It's no longer possible to see it in person |
|---|---|
| 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
Mohamadanari is not only stumbling when you lack knowledge. 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 Mohamadana.
- 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. 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 making an actual decision on what to do, check at least these five things.
- Can you explain in one sentence the purpose of watching Mohamada Nari?
- 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 current state is not to speed up the action, but to reduce unnecessary mistakes in judgment.
Summary
This is a material for organizing your 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 the story 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 "Mounamarari" as a tool to pause before buying or selling, rather than a word that forces you to make a hasty decision.