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"Long" is a purchase position aiming for profit by price rise.
It is the most basic investment method, and many individual investors are dealing with long-term.
In this article, we will explain the meaning of long, the mechanism of profit, the difference from short, and the points that beginners should be aware of.
What is Long?
Long is a trade that sells high by buying cheaper.
In other words, we aim for profit by increasing stock price and asset price.
Most common stock investments are long trading.
Buying and holding stocks is basically a long position.
Easily explain how it works
For example, buy a stock for 1,000 yen and sell it for 1,300 yen.
| Action | Stock Price |
|---|---|
| Buy | ¥1,000(税別) |
| 上昇 | JPY1,300 |
| Sell | JPY1,300 |
| Profit | ¥300(税別) |
The more the price increases, the more the profit.
On the other hand, if the price is lower, it will be damaged.
Why Long?
Although there are various説 from the origin, it is called a long buy position in investment.
It is a word that expresses the state that you are trying to have an increase expectation.
The opposite is short.
Short is a transaction that aims to profit in the price drop.
Short
Long is aiming for profit by rising, and short is aiming for profit by drop.
| 項目 | Long | Short |
|---|---|---|
| Profit | 上昇 | Close |
| General | Mainstream | For advanced users |
| Maximum Loss | Investment | Theory is infinite |
| Main Usage | Long-term investment | Sales, hedge, short-term sales |
It is basic to understand the long mechanism first.
Long Benefits
1. Long-term growth
In the long term, the stock market has a feature that is easy to rise as it expands economic growth and corporate profit.
That’s why long is good for the next investment.
- LongTermInvestment
- Investment
- Index investment
- Investment
Long’s strength is that it is easy to ally for time, not sprinkling with short-term movements.
2. Easy to understand loss limit
Stock price is not less than 0 yen.
Therefore, the maximum loss of the actual long is up to the investment amount.
This is an easy-to-understand feature than a short that can cause losses to become theoretically endless.
However, there is a risk
1. Highみ
Beginners are easy to jump to a brand that has become a hot topic after a or SNS.
As a result, you may be able to buy it with a high value, and you may be able to stop at the fall.
In particular, you need to pay attention to materials andテーマ.
2. Full Position
A full position is a state where funds are invested almost in full.
If the market drops, additional investments and loss options will be narrowed.
Fund management is important even for long.
Long and important thinking
Good company and good stock price are different.
It is not good to buy because it is a famous company or a popular theme.
What is important is the right price for now?
What is Valuation?
Valuation is an evaluation of the stock price.
Even in the same company, it may be overheated as cheap.
In Long, it is important not only the attractiveness of the company, but also the price to buy.
What is important for long-term investment
Long investments are critical to decentralization, integration and time balancing.
In particular, beginners will be more stable than they will continue to win at once.
Here are the recommended ideas:
- Distribute to multiple symbols and investment trusts
- Use not only b investment but also bulking
- Living Funds
- No reaction to short-term movement
Actions that beginners want to avoid
I want to avoid emotional long.
For example:
- Buy FOMO
- Buy by SNS
- Buy with unfounded expectations
- Fly after a
- Buy without breaking rules
What is FOMO?
Before you buy, let’s see why you can explain.
Long is a purchase position aiming for profit by price rise.
It is a basic form of stock investment, and it is a transaction that is compatible with long-term investment and integrated investment.
However, you need to pay attention to high-value投資s and in、 investments.
The most important thing in investment is that you can explain why not buy because it seems to rise.