[Summary]
Whale investors are a term used to describe large investors who have a significant impact on the market.
Whale investors are a story about reading market prices, and at the same time, it is also a good way to check where you tend to get impatient.
In actual investment, the starting point is to check large holdings, supply and demand, and changes in the board. However, it is important to note that following only large-scale movements will weaken the evidence.
In this article, whale investors are not defined 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.
What to distinguish among whale investors
When looking at whale 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. Whale 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.
The Gap Between Whale Investors and Emotion
If we look at whale 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 | What to see in Whale 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
Whale 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 whale 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
The important thing here is not to settle for just one correct answer among whale investors. 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 five things at least before making a decision on whale investors.
- Can you explain in one sentence the purpose of looking at whale investors?
- 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 whale investors is not to act faster, but to reduce unnecessary errors in judgment.
Summary
Whale Investor is a resource 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 first the purpose of looking at whale investors
- 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 whale investors to treat it as a tool to pause before buying or selling, rather than as a word that forces them to make a hasty decision.