The same applies to set annual profit goals. How much you are able to make in a year depends on the market environment of this year. If If you maintain the decrease of resources, rising market Since no one knows how much the stock price will rise, for individual stocks, we don’t set a profit target of all. As a general rule, I will continue to maintain as long as the trend continues, but I don’t understand just how far the upward trend will continue. There is no space to place a”profit target” on a single problem basis, as we will simply sell our holdings when the uptrend ends.
Personally, I think that the strength of the stock price trend analysis comes into play during long-term downtrends. Therefore, Addition is set from the point of view of how much positive performance the industry average can achieve.
Also, For Individual I really don’t think there’s a point whatsoever in terms of percent goals such as”20% increase in stocks bought and profit margin” or”10% annual profit goal”.
The reason for the author’s purpose for the long term downtrend is”plus/minus zero” since from the long-term downtrend, short sales are executed within a reasonable selection, and gains are gathered. If you are the investment performance will inevitably be negative in the decline, so for instance, the goal of maintaining it in half of TOPIX’s decline rate is adequate.
Investors who invest in individual stocks must aim to attain investment results that are better compared to TOPIX because the individual stock investment is moot unless it exceeds the profit of index administration. Additionally, if you believe you have gained your ability, I believe you need to gradually increase your objectives, like”Aim to raise TOPIX by 20 percent”.
You utilize this, you will not hold stocks whereas individual stocks have a downtrend, so for instance,”Keep it in half of TOPIX’s decrease rate while TOPIX is in a long-term downtrend”. Is feasible.
On the flip side, while TOPIX is in a rising market that is long-term, it’s important to devise some stock choices. We will need to select a stock that shows a rise over the industry average since TOPIX shows the motion of the industry average. Based on that, we have set the target characters that are considered to be realizable personally. If This Many So, this time, I would like to introduce to set the profit goal that I consider. \ First, Individual traders put their profit goals by”percent”, such as”Let’s sell if the stock bought rises by 20%” or”Target 10% gain per year”. It seems. But is the decision correct?
The TOPIX trend determines the Definition of falling costs and long-term rising using a graph and also a moving average. If this is an uptrend, it’s a”long-term uptrend”, also if it is a downtrend, it is a”long-term downtrend”.
In Example, if TOPIX entered a long-term climbing market and doubled, in case your assets under management were greater than 2×1.5=3x, then you’d achieve the target.
Specifically, It’s the right choice to hold provided that the stock price rising tendency continues, not to”take profit when% climbs”. Afterward, it is concluded that it does not make sense to set profit goals for individual stocks.
The Example, in the instance of a market price that rises above anything, such as the first six months of this market (before May 2013), cost movements such as business lower-ranking stocks, low-ranking stocks, and emerging market stocks are far bigger than those targeting good stocks. You can achieve investment results that exceed TOPIX by investing in stocks.
We aim for a gain of 1.5 times the speed of growth of TOPIX in the long-term climbing market and a goal of plus or minus zero in the long-term decreasing market.
If the investment operation is similar to TOPIX in the long-term It means that the target was achieved if the resources under the control of this firm haven’t diminished during this period, When the trend continues.
TOPIX drops by 10% or 20 percent annually, if you set a goal of”10% gain per year”, you will be made to attempt and produce a profit, and you might end up, using a large collapse. On the contrary, even if TOPIX is growing by 30% per year, a profit of 10 percent per year is overly sweet.
A major market that comes once or twice in a decade, the stock price of an individual inventory readily rises from the reduced price to 5 days or 10 times. These stocks will probably continue to grow for a time period, so in the event that you make trading decisions in line with the stock price trend, you may increase profits.
Example, after the start of the Abenomics market, individual stocks that took profits have risen steadily, and in the long run, you might have felt that the stock price has doubled or decreased you took. . .
Than long-term investment in index management. You ought to be able to. That is as it is a method of picking out a target that ignores the stock market situation and inventory price trends. In case it can shift to growth stocks from low-ranking stocks/emerging marketplace stocks addition, if there is a tendency to buy growth stocks that continue to rise due to continuing polarization in profits and earnings, the operation will exceed TOPIX. Will be possible.
Let us take a look at the aforementioned. First And I use”inventory price trend analysis” to attain this objective. If And the point is that nobody can tell TOPIX will fall or rise this year before the end. So, without understanding the industry environment this season, it is meaningless to opt to aim for an annual gain of 0%.