[Summary]
The advantage of knowing the bearishness you want to buy and the bullishness you want to sell is that it does not guarantee profits, but it makes it easier to organize the materials you need to look at.
The advantage of knowing the bearishness you want to buy and the bullishness you want to sell is that it does not guarantee profits, but it makes it easier to organize the materials you need to look at.
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 explain the benefits of knowing which stocks are bearish to buy and which are bullish 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 the bearish ones who want to buy and the bullish ones who want to sell.
When looking at the benefits of knowing whether you want to buy or bullish, 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. The advantage of knowing whether there is a bearish position to buy or a bullish position 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.
Don't overestimate the benefits of knowing which bears want to buy and which bulls want to sell.
If you want to see the benefits of knowing the bearishness you want to buy and the bullishness 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 | What to look at with the benefit of knowing which bearish ones want to buy and which bullish ones want 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
Bearishness that you want to buy and bullishness that you want to sell can cause you to stumble 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.
- Decide first what you can see with the advantage of knowing the bearishness you want to buy and the bullishness you want to sell.
- Differentiate between conditions that bring about benefits and conditions that do not.
- When expectations are too high, test with a small amount
- Write down the terms of withdrawal before considering profits.
The important thing here is not to settle on a single correct answer based solely on the merits of knowing which are bearish to buy and which are bullish 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 and bullishness you want to sell Before using the merits of knowing whether 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 benefits of knowing whether a bearish person wants to buy or a bullish person who wants 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 benefits of knowing the bearishness that you want to buy and the bullishness that you want to sell is not to make you act faster, but to reduce unnecessary judgment errors.
Summary
The advantage of knowing whether a bearish stock wants to buy or a bullish stock that wants to sell is that it helps you organize your investment decisions. Even if you read it as an advantage, treating it as a stand-alone buy/sell signal will make your judgment difficult.
The points to keep in mind are as follows.
- Know the bearishness you want to buy and the bullishness you want to sell Determine the purpose 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. The advantage of knowing whether a bullish person wants to buy or a bearish person who wants to sell is that it is realistic to treat it as a tool to pause before buying or selling, rather than as words that force you to make a hasty decision.