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The scale economy is a structure that reduces unit costs by scale expansion.
It is easy to fail in a scale economy than the lack of knowledge itself, it is a scene that justifies a burnt decision later.
In actual investments, we first see the profit margin improvement area of large companies. However, it is impossible to see that scale expansion does not necessarily lead to profit.
In this article, we will organize the scale economy as a procedure to confirm before buying and selling. Do not rush to the conclusions and read them according to your own amount and time axis.
Firstly divided by scale economy
When you look at the scale economy, you will first be divided into "What do you want to judge?" The necessary information changes depending on whether you want to know the meaning, check before buying or selling, or whether you are holding a review.
In particular, beginners tend to receive as conclusions as easy-to-understand words. The scale economy is not just a material that decides the decision. If you confirm, it is moreto review it together with capital management, holding period, and counterarguments.
Easy to fail in scale economy
If you look at the scale economy as a failure pattern, put the premise narrowly. It is important to not mix the story of the entire market, the story of the individual brand, or the story of NA and long-term funds.
When you check the following points, the story is pretty organized.
| Axis to check | Looking at a scale economy |
|---|---|
| Purpose | What to use to determine |
| Time axis | How close to short-term trading, long-term holding and NA? |
| Home | Which is the center of price, performance, interest rate, exchange rate, and after-sales service |
| Risks | Where can I see when I move? |
| Action | Which leads to buying, selling, nothing |
Easy to stitch by judgment
It’s not only when knowledge is not enough for scale economy. However, there is a situation where you can interpret it easily because you know a little.
- I don't decide the conclusion of buying and selling at the moment I saw the scale economy
- Do not mix the time axis that fits the scale economy and their retention period
- Do not increase positions to avoid loss
- SNS and rankings
That’s why we don’t decide the right answer to the scale of the economy. In investments, the meaning changes depending on the period of ownership and the amount of funds. Prioritize the confirmation order from the conclusion.
Pre-sale checklist
Check the minimum of this five before making the scale economy into the actual judgment material.
- Is it possible to describe the purpose of seeing the scale economy in a sentence?
- Have you checked one or more of the opposite material or failure conditions?
- Are you investing in living funds or nearby money?
- Determining the standards forstop-loss, profit-taking, and holding criteria
- SNS or short heading
Checklists are plain, but they prevent the habit of adding reasons after deciding. The purpose of confirming the economy of scale is to reduce excess judgment mistakes rather than making action faster.
Conclusion
Economics of scale are materials to organize investment decisions. Even if you read as a failure pattern, it will be rough to be treated as a single sales sign.
The point to press is as follows:
- Determine the purpose of seeing the scale economy first
- Do not mix time axis and amount of money
- Check not only good materials but also other materials
- N、 and long-term funds think about loss
- If you are unsure of the decision, you can either reduce the position
Knowledge seems to be more secure, but if you mistake the scene you use in the market, you will be in danger. The economy of scale is practical to treat it as a tool to stand up before buying and selling.