[Summary]
Work and investment is a theme that considers the relationship between labor income and investment income.
The benefit of working and investing is not that it guarantees a profit, but that it makes it easier to organize the material you need to look at.
In actual investment, the starting point is to separate your main job, job change, side job, and asset management. However, you need to be careful that it is easy to try to change your life just by investing.
In this article, we will organize work and investment 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 work and investment.
When looking at work and investment, 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. Work and investment are not the only factors 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.
Don't overestimate the benefits of work and investment
If you look at jobs and investments as benefits, 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 look for in work and investment |
|---|---|
| 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
When it comes to work and investing, it's not only when you lack knowledge that you stumble. 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 in your work and investments
- 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 only one correct answer based on work and investment. 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
Check these five things at least before making a decision about work and investment.
- Can you explain in one sentence the purpose of looking at work and investment?
- 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 reviewing work and investments is not to act faster, but to reduce unnecessary errors in judgment.
Summary
Work and investment are the ingredients for organizing 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 first the purpose of looking at work and investment
- 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 work and investment as tools to pause before buying or selling, rather than words that force you to make hasty decisions.