What are the timings to avoid when investing in stocks? Let’s get a good scene on your side

Hello

When investing in stocks, I have never experienced that the stock price started to fall from the day after I bought it at the wrong time, and that the stock price went up further when I sold it to make a profit. Is not it.

Ideally, you would buy at the bottom of the stock price and sell at the ceiling, but when you actually try it, it is difficult to invest in stocks.

In particular, investment is not always good and should be avoided at times that are unfavorable to investors.

If you make an investment in an unreasonable situation, you are likely to make a mistake and you will lose your funds.

Therefore, this time, I will introduce important things other than the timing and timing that should be avoided in stock investment.

What you can see in this article

  • When to Avoid Equity Investment
  • The importance of increasing assets, not short-term wins and losses
  • Find your favorite scene by investing

Sometimes there is a time to avoid investing in equity investments

While the stock market is open, stock prices are constantly moving and trading.

However, just because the market is open doesn’t mean you can always win.

This is because there are times when stock prices are easy to move and win, and times when stock prices are hard to move and easy to lose money.

In particular, it is possible to invest at a time when it is easy to lose and lose some or all of the profits that have been won so far.

In other words, knowing and avoiding situations and timings that investors are likely to lose leads to winning and protecting assets.

So, first of all, I will introduce the timing to avoid investing in stock investment.

Should be avoided when global stock prices are falling or when related stock indexes fluctuate significantly

In the Japanese stock market, not only Japanese but also many foreign investors are investing, and a considerable amount of foreign funds are flowing in.

Therefore, it can be said that it is time to avoid investing once when the global stock price falls or the medium- to long-term decline phase begins.

The global recession will cause global stock prices to fall, but I don’t know if Japanese stocks will fall as well, and conversely, Japanese stocks may be bought because they are safe.

Basically, Japan is also affected by the world situation and the stock price fluctuates, but it does not necessarily move because various factors are complicatedly involved.

Also, if there are big fluctuations in the Nikkei 225 or the Dow Jones Industrial Average, or the next day, you should take a look.

It is said that the NY Dow and the Nikkei 225 are sometimes easily linked, and there are scenes where the Nikkei 225 rises when the NY Dow rises, and the Nikkei 225 falls when the NY Dow falls.

Although not always, if there is a big movement in either, it will affect the fluctuation from the next day onwards.

Looking at the individual stocks to invest in, there are stocks included in the Nikkei 225, stocks that are easily linked, and stocks that are related to NY Dow, so once there is a big movement in the related stock index, If you are a beginner, it is time to avoid investing.

By the way, in stock investment, you can aim for profit even in a downturn by short selling, but at the timing you should avoid, you often do not know whether it will go down or up, so even if it is in a downturn. Since you have to be careful, we are introducing it as a timing to avoid for stock beginners.

Of course, if you hone your trading skills to some extent, you can aim for big profits, so it is also possible to make it an opportunity.

When the stock price is not moving or when it is not moving according to the technical analysis

It can be said that it is a time to avoid when the stock price does not move or when the technical analysis is performed but it does not move according to the analysis.

Equity investment can aim for profit because it creates a trading difference, and if you invest when there is no price movement forcibly, you are investing in a situation where it is difficult to aim for profit.

When price movements start to occur from a state where price movements are small, it is often not known until you actually check whether the price movements will start to rise or fall.

Therefore, when the stock price is stable or low, it is time to avoid investing.

Also, it is time to avoid investing even when the forecast of the result of technical analysis and the actual stock price movement are different.

Since technical analysis cannot predict 100% of all price movements, the analysis results may sometimes be off.

In particular, if technical analysis and actual stock price fluctuations deviate from the forecast, the stock price may move significantly, which may lead to a large loss.

It was a time when technical analysis showed signs of an increase, but the actual stock price fell sharply.

In this way, avoid investing when you feel unpredictable or uncomfortable.

It is important to be aware of whether assets are increasing, not just timing of investment

So far, we have introduced the timing to avoid when investing in stocks.

You have to remember when to avoid it and be aware that your wealth is increasing.

Being aware of the timing of investment is an action of what action to take for the current investment.

This is a short-term perspective, and we are in a position to pursue immediate profits and losses.

Therefore, when making an investment, it is important to be aware of the timing and also be aware of the increase in assets (funds) over the medium to long term.

Is asset increase not only in the short term but also in the medium to long term?

Equity investment raises awareness of timing, and if you are only aware of short-term increases and decreases in funds, you will end up in a situation where assets are not increasing.

The purpose of investing is to manage your own funds and increase your assets, and it is meaningless unless you increase your money in 5 to 10 years.

Therefore, instead of repeatedly being aware of winning and losing in the short term, it is necessary to confirm whether the funds are increasing properly in units of one month, six months, or one year.

Especially when you are doing short-term trading such as day trading with stocks, you must be aware of the increase or decrease of funds because it is easy to stick to winning and losing.

If you are only short-term trading and your funds are not increasing, you can try changing to medium- to long-term investment or swing trading.

It is difficult to find the bottom and ceiling of the stock price, so compete in the situation where you are good at

You should be aware of the timing to avoid stock investment and whether your assets are increasing in the medium to long term, and then invest in situations where you are good at what is important.

I’ve introduced a little, but finding the bottom or ceiling of a stock price is basically difficult, especially for beginners.

Just like when you avoid investing, the points such as the bottom and ceiling are difficult to find in real time and cannot be predicted, so it can be said that you should avoid investing.

Therefore, instead of forcibly finding the bottom or ceiling, invest in situations where you can easily win or where you are good at.

Even if you don’t invest in situations where you are likely to lose, if you invest only in situations where you can win, the winning percentage will naturally increase and your assets will increase.

Of course, it is not easy to find a winning scene, so you have to trade many times to find it.

However, if you pay attention to the situations that you should avoid and whether your assets are increasing, you will naturally be able to recognize the situations where you can win.

Therefore, first of all, let’s invest while thinking about what kind of situation you bought in the past chart and why you won while you traded.

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