[Summary]
Locust investors are investors who allocate short-term funds to material stocks all at once.
Locust Investor is a story about reading market prices, and at the same time, it also serves as a material for checking where you tend to get impatient.
In actual investment, the starting point is to confirm the volume spike and the lifespan of the material. However, be careful that if you exit late, you will be caught in a steep decline.
In this article, we will organize locust investors 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 thing to differentiate between locust investors
When looking at locust investors, 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. Locust investors also do not rely on that alone to make decisions. If you want to check it, it is more realistic to look at it in conjunction with fund management, holding period, and opposing materials.
Locust investors and emotional misalignment
If we look at locust investors in terms of investment psychology, we first need to 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 | Things to see with Locust Investor |
|---|---|
| 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
Locust investors 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.
- Record your impatience and sense of relief when you see a locust investor
- 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
What is important here is that locust investors do not 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 these 5 things at least before making a real judgment on locust investors.
- Can you explain in one sentence the purpose of watching Locust Investor?
- 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 locust investors is not to act faster, but to reduce unnecessary judgment errors.
Summary
Locust Investor is 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 looking at locust investors 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 for locust investors to treat it as a tool to pause before buying or selling, rather than as a word that forces you to make a hasty decision.