[Summary]
Ray Dalio is an investor's mindset that emphasizes economic cycles and diversification.
The benefit of Ray Dalio is that it doesn't promise any profit, but that it makes it easier to organize the material you need to look at.
In actual investing, the starting point is to take a broad look at the economy, debt, and asset allocation. However, it should be noted that relying too much on macro forecasts will weaken individual judgment.
In this article, we will organize Ray Dalio 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 know about Ray Dalio
When watching Ray Dalio, first decide 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. Ray Dalio is also not something to judge on its own. 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 Ray Dalio's merits.
If you look at Ray Dalio on merit, 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 see in Ray Dalio |
|---|---|
| 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
Ray Dalio doesn't just stumble when you lack knowledge. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- Decide first what you want to see with Ray Dalio
- 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 Ray Dalio as the only 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 any judgments about Ray Dalio, check at least these five things.
- Can you explain in one sentence the purpose of watching Ray Dalio?
- 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 Ray Dalio is not to make you act faster, but to reduce unnecessary errors in judgment.
Summary
Ray Dalio is a resource for organizing 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.
- Decide your purpose for watching Ray Dalio 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 Ray Dalio as a tool to pause before buying or selling, rather than as a word to rush into judgment.