[Summary]
Bearish wanting to buy Bullish wanting to sell is an investor's psychology where the true feelings and statements are opposite.
Bearishness to buy and bullishness to sell can be replaced with actual examples, making it easier to see the difference between situations where they can be used and situations where they are difficult to use.
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 organize the bearishness you want to buy and the bullishness you want 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 bearish people who want to buy and bullish people who want to sell.
When looking at bearish trends you want to buy and bullish trends you want to sell, 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. A bearish desire to buy or a bullish desire 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.
Consider examples of bearish people wanting to buy and bullish people wanting to sell.
As an example, if you want to look at bearish stocks you want to buy and bullish stocks 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 | Looking at it as a bearish desire to buy or a bullish desire 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
Bearish people who want to buy Bullish people who want to sell 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.
- Focus on one situation where the bearish forces want to buy and the bullish forces want to sell work well.
- Even if the price movements are similar, if the background is different, they are treated as different things.
- View not only successes but also failures using the same criteria.
- Check if you can reproduce it with your own amount of funds
The important thing here is not to decide on just one correct answer based on whether bears want to buy or bulls want 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 Before using bullishness 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 bearishness that you want to buy and the bullishness that you want 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 bearishness that you want to buy and the bullishness that you want to sell is not to act faster, but to reduce unnecessary judgment errors.
Summary
A bearish desire to buy and a bullish desire to sell are materials for organizing your investment decisions. Even if you read it as an example, your judgment will be inaccurate if you treat it as a standalone buy/sell signal.
The points to keep in mind are as follows.
- Decide first the purpose of looking at the bearishness you want to buy and the bullishness you want to sell.
- 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. Bearish wanting to buy and bullish wanting to sell should not be used as words to rush into making a decision, but should be treated as a tool to pause before buying or selling.