[Summary]
Buying distant wars is a maxim that aims after the initial shock of a geopolitical event.
What is most likely to lead to failure when purchasing a distant war is not the lack of knowledge itself, but rather the fact that you end up justifying your hasty decisions afterwards.
In actual investing, we first start by considering remote risks when they cause the entire market to oversell. However, it cannot be overlooked that materials related to war and human life are not treated lightly.
In this article, I will organize the purchase of Distant Wars not as "knowledge" but as a step to confirm before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.
Distant wars should be divided by purchase first.
When looking to buy a war in the distance, 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. Buying a distant war is not the only factor in making 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.
Distant wars are a place where it is easy to make mistakes when buying.
If you want to buy distant wars as a failure pattern, first make your assumptions narrow. 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 | Buy and watch distant wars |
|---|---|
| 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
The reason you have trouble buying a distant war is not only when you lack knowledge. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- In a distant war, don't decide whether to buy or sell the moment you see a buy.
- For distant wars, do not mix the time frame that suits you to buy with your own holding period.
- Don't increase your position to recoup your losses
- Don't make a decision just based on SNS or rankings.
The important thing here is not to settle on just one correct answer when it comes to distant wars. 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 an actual decision to buy Distant War, check at least these five things.
- Can you explain in one sentence the purpose of buying Distant War?
- 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 purchase of a distant war is not to act faster, but to reduce unnecessary errors in judgment.
Summary
Buying a distant war is material for organizing your investment decisions. Even if you read it as a failure pattern, treating it as a standalone buy/sell signal will lead to poor judgment.
The points to keep in mind are as follows.
- For distant wars, first decide on the purpose of buying.
- 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 the word ``buy in a distant war'' as a tool to pause before buying or selling, rather than as a word that forces you to make a hasty decision.