[Summary]
Age Sanpo is a form of rising again after a short pause on the way up.
If you replace the three methods with practical examples, it will be easier to see the difference between situations where they can be used and situations where they are difficult to use.
In actual investment, we start by using it to confirm the push of a strong trend. However, it cannot be overlooked that continuity is weak when there is no volume.
In this article, I will summarize the three methods of raising as a step to check before buying or selling, rather than as "knowledge". Don't rush to conclusions, read according to your financial amount and time horizon.
First, divide using the three methods
When looking at the three methods of raising, 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 three laws of raising are not enough to make a decision on their 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.
Thinking about the Raise Sanpo with practical examples
If we look at the Raising Three Laws as an example, we first have 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 the upper three methods |
|---|---|
| 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
It is not only when you lack knowledge that you stumble with the Raising Three Laws. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- Focus on one situation where the three methods of raising 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 settle on one correct answer based solely on the three methods. 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 using the Raising Three Laws as a basis for actual judgment, please check at least these five points.
- Can you explain in one sentence the purpose of looking at the upper three methods?
- 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 the Raise Sanho is not to speed up your actions, but to reduce unnecessary mistakes in judgment.
Summary
The three methods of raising are materials for organizing 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 the purpose of viewing the Raise Sanpo 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 more realistic to use the Raise Sanpo as a tool to pause before buying or selling, rather than as words that force you to make a hasty decision.