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@kabu1000 It's exactly as you said, but it's really interesting, isn't it? 😅 I also find it fascinating that general human perception is only negative.

@kabu1000 That's so true. Even though I know that, the scariest thing is getting swept up in the market sentiment.

@kabu1000 Individuals are fighting a battle between greed and fear Salaried investors (dealers in proprietary trading departments, etc.) are strong in times like these because it's company money anyway.

@kabu1000 Doing the opposite of "buy low, sell high" is simply human nature, where fear and greed take precedence over logic. Even armed with data and valuations, when faced with unrealized losses or gains, emotions override judgment. I think this contradiction is the reason why the market has remained inefficient for so many years.

@kabu1000 But I always end up buying at a high price. 😭

The exact same phenomenon occurs in FX trading. You tend to let losses run and cut profits quickly. Even though you know that doing the opposite would change the outcome, your emotions at that moment always try to make you choose the opposite. My rule is to decide on both profit-taking and stop-loss lines before entering a trade. You just have to create a system beforehand to prevent yourself from making decisions based on your emotions at the moment 👍

@kabu1000 Human psychology is easily influenced by the market, leading to actions that are contrary to the original principles of behavior.

@kabu1000 I've been looking at charts for years, but I still feel like there's so much more to learn.

@kabu1000 That's so true. When I look at the market every morning, I feel reassured and want to buy when it's going up, and anxious and want to sell when it's going down. I make a note of my reasons for buying and conditions for selling beforehand, and I try to check the earnings outlook and whether it has fallen below the 25-day moving average rather than just the price movement. Even then it's difficult, so I review it many times.

@kabu1000 It's profound, isn't it? Really.

@kabu1000 It's just a matter of buying low and selling high, but that's the hardest part, isn't it? 😌 I feel that in this world, the people who can persevere without being swayed by emotions are the ones who can achieve long-term results. 📈

@kabu1000 What constitutes a cheap stock? For example, Kioxia is cheap based on its projected P/E ratio, but expensive based on its P/B ratio. Looking only at the stock price, it's a high-priced stock. But it's cheaper than its all-time high. If you have a standard for what's cheap or expensive and it's reproducible, I think you can make money...

@kabu1000 I understand it intellectually, but I can't actually do it in the market I feel that stocks aren't just about numbers, but a battle against yourself.

@kabu1000 Whenever I want to buy stocks, it's often because the price is too high. I learn my lesson every time, but I keep repeating the same mistake.

@kabu1000 x.com/KarolynMatzr/status/2079…

@kabu1000 Everyone understands the logic, but fear and desire make them act in the opposite way. That's the hardest part of trading. The longer you observe it, the deeper it seems, and I think that's because it's a world where you confront your own emotions. 🔍

@kabu1000 I completely agree. In theory, it's just a matter of "buy low, sell high," but in the actual market, anxiety and greed make it difficult to make decisions. Especially when looking at the long term, I feel it's important not to be swayed by short-term price fluctuations and to stick to your own investment reasons.

@kabu1000 There's a good psychological reason why you can't cut your losses. When prices are rising, you feel safe and want to buy, and when they're falling, you get scared and want to sell...it's just human nature. That's why it's important to set rules beforehand 🦊

@kabu1000 This is exactly what prospect theory calls loss aversion bias. You hold onto unrealized losses because you think "it might go down even further," and you sell off unrealized gains early because you want to "secure them before they decrease." I think the scary thing about the market is that rational decisions are more easily swayed by emotions.

@kabu1000 I think the most obvious things are the hardest.

@kabu1000 You might think you'll be fine because you have strong willpower and don't get emotional, but in the end, brain hormones act in the opposite way. Unless you can consciously produce serotonin, the only way is to trade mechanically. This doesn't apply to people who are already rich. The little fish that are lured in by social media are prey to millionaire traders.