[Summary]
Laughter of the Dog is a saying that says that the market tends to be brighter in the Year of the Dog.
What is most likely to fail with a dog laugh is not the lack of knowledge itself, but rather the situation in which a hasty decision is justified later.
In actual investment, we begin by assisting in observing the atmosphere and supply and demand at the beginning of the year. However, we cannot overlook the dangers of being bullish based only on the zodiac signs.
In this article, I will organize Inugari not as "knowledge" but as a procedure to confirm before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.
First of all, let's divide by dog laughter
When looking at a dog laugh, 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. The laughter of dogs is not enough to make a judgment 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.
Situations where it is easy to fail with dog laughter
If we look at dog laughter as a pattern of failure, first of all we need to 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 with dog laughter |
|---|---|
| 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's not only when you lack knowledge that you stumble with dog laughter. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- Don't decide whether to buy or sell the moment you see a laughing dog.
- Do not mix the time axis that suits Doguwarai 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 decide on one correct answer just by laughing dog. 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 Dog Laughter as a basis for actual judgment, check at least these five things.
- Can you explain in one sentence the purpose of watching Dog Laughter?
- 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 dog's laughter is not to speed up the action, but to reduce unnecessary errors in judgment.
Summary
Dog Laughter is a material for organizing 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.
- Decide first the purpose of watching Dog Laughter
- 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 dog laugh as a tool to pause before buying or selling, rather than as a word to rush into judgment.