Heading ① Types of profit: Capital and income
Conclusion: The strategy will change depending on whether it is profit from price increase or continuous income
capital gain
One word: profit from sale Details: Profit from buying low and selling high
- Stock price needs to rise
- Often aimed at short to medium term
income gain
One word: Earnings while holding Details: Continuous profits such as dividends and shareholder benefits
- Good for long-term investment
- Even if there is income regardless of the stock price
comparison
| type | Features | suitable person |
|---|---|---|
| capital | price increase profit | A person who can follow price movements |
| income | stable income | People who want to hold it for a long time |
Headline ② Mechanism of margin trading and short selling
Conclusion: Increased return comes with increased risk
Margin Trading
In short: How to borrow and trade Details: Deposit collateral with a securities company and borrow funds and stocks to buy and sell
- Large trades possible with small funds
- Losses can easily increase (leverage)
Short Selling
One word: Aim for profit from the decline Details: Borrow stocks, sell them first, buy them back cheaper
- Opportunity to profit even in a down market
- As the price rises, losses increase (theoretically infinite)
Points to note
- Beginners should basically start with spot trading.
- Risk management is essential
Headline 3: How to read market prices: Trends
Conclusion: The basic strategy is not to go against the flow
What is a trend?
One word: price direction Details: Which direction is the market moving?
- Uptrend: New high prices continue
- Downtrend: New lows continue
- Flat: No sense of direction
Practical tips
- “Buy on the edge” when it is rising
- Don't force yourself to buy during a decline
- Be aware of trend changes
Heading ④ Failure example: What is salt pickling?
Conclusion: The biggest risk is not being able to cut your losses
salted
One word: Leave the unrealized loss as it is. Details: Stock prices have fallen and it is difficult to sell.
why it happens
- The expectation that “I will return someday”
- Psychology of wanting to avoid locking in losses
Workaround
- Decide your stop-loss line in advance
- Make decisions based on rules, not emotions
Summary
- Profits are divided into “capital” and “income”
- Margin trading and short selling are high risk
- Basic strategy is to follow trends
- Loss cut rules are important to prevent salting
Action:
- Decide on the type of profit you are aiming for
- First, gain experience in spot trading
- Be sure to set stop loss rules