- Introduction “Is it difficult to invest?”
Introduction “Is it difficult to invest?”
The recent investment boom, the 20 million yen problem after retirement, and other uncertainty about the future, as well as the spread of the Internet, have made investment a familiar presence. However, while there are people who have made a large profit from their investments, we also hear a few voices that have made a large loss. I’m winning, so it’s okay! It is not. Investment is a ruthless world where people who can think about how to avoid (or reduce) losses survive. I feel that we are in an era where we talk about asset building with children. Currently, we have to admit that Japan is a backward country in investment education. They are overwhelmingly lacking in experience (including me). It is not uncommon for people who confidently say that they do not gamble on alcohol, cigarettes, pachinko, etc. to melt tens of millions of yen with Forex. Short-term trading of stocks without grounds, Forex is no different from speculation. There is also an aspect of the zero-sum game, in which ordinary retail investors will need considerable market sense and strong luck to win over institutional investors, the state, and the wealthy. It seems that investment education classes have started in home economics at high schools in 2022. Let’s learn about investment and economics and invest as safely as possible. Considering future risks, I feel that it is also important to invest overseas.
What is investment?
Investment is “putting capital into a business, equipment, etc. in anticipation of profits.” Paying money for future profits is called “investing.”
What is speculation?
What is a zero-sum game?
A scoring game or situation in which the total score of all participants is always zero. In a zero-sum game, if one side scores, the other concedes a goal, so the sum of the total points is always zero.
Can you win by investing?
How can you win with your investments? There is no winning method! If there is, please let me know. I feel that paid products that can win by investment can be regarded as fraud. Even if you learn technical and gain experience, the world of markets always asks “why?” Even if you can win for a while, you will lose in a moment. However, this does not mean that ordinary retail investors cannot win stably. So what should we do? We have summarized investment methods that reduce the risk that even children can understand.
Investment methods that reduce risks that even children can understand [4 selections]
Long-term perspective [Long-term savings investment]
Long-term investment allows you to safely grow your assets. At the time of the crash, the “corona shock” in recent years will not be felt at the time of selling, but rather at the time of buying. Investing can be mentally dependent, so you need to make a calm decision. Young people can invest steadily for a longer period of time, so they may be happier if they invest part of their savings. For amateurs, it is also effective to invest in stocks with excellent shareholder benefits, indices such as the S&P 500, mutual funds, and services such as wealth navigation that have a future like AEON stocks. With dollar-cost averaging, by keeping the amount of investment invested on a regular basis constant, you can expect to reduce the average purchase price by purchasing more when the price is low and less when the price is high. Invest with spare funds. If you just save for spot trading, at worst you will only lose the principal. Please note that margin trading and Forex trading can lead to a large loss if you have leverage.
What is the difference between spot trading and margin trading?
To put it simply, “Spot = trading with own funds” “Credit = trading with securities company money (debt)” In the case of credit, it is also possible to buy back from selling called short selling.
What is leverage?
Increasing the return on equity capital by using the capital of others. That increasing magnification. Naturally, profits are doubled and losses are doubled.
Do not concentrate on investment [Diversified investment]
Do not concentrate and invest, this is the basis of investing. If you invest 100% in financial product A, if A crashes, it will be a loss. It is important to invest in various financial instruments in a diversified manner. This is called a portfolio.
Don’t get on sweet talk
The sweet story of low risk high return can be seen as a scam. Also, of course, refrain from investing in high-risk products such as Forex. I see blogs and the like trying to make a living by swapping (making a profit), but there is no such sweet story (everyone does it if it is profitable continuously). Keep in mind that markets are living things, so investing in high-risk products carries the risk of losing your property.
What is Forex Swap?
It refers to the interest rate difference between two countries (currencies). You can receive a swap if you buy the currency with the higher interest rate. Conversely, if you sell a currency with a high interest rate, you will pay a swap.
Learn investment (economics) in your own way
Let’s learn investment (economics) in your own way. It maybe, it may be profitable, it is dangerous because people say it. Your gains are the losses of others, and your losses are the interests of others. However, since the market is always fluctuating, it is better to invest in stocks with good future potential and excellent shareholder benefits, invest steadily in services such as indices such as the S&P 500, mutual funds, and wealth navigation and not look at the graph of price movements, rather than moving poorly. However, in rare cases, the holding company may fall into a situation where it is likely to go bankrupt, so it is necessary to keep an eye on the economy such as news.
Investing can be a great way to enrich your life in the future, but if you do it wrong, it’s no different from gambling. In some cases, you will lose more than gambling. Let’s gain knowledge and experience that allows you to judge for yourself even if you listen to profitable stories on the Internet, such as securities companies and influencers. I hope this article has been of some help to you. I want to invest safely with spare funds for the future.
◆Precautions for Investment◆
*Investing is risky and is at your own risk. There is no right way to invest. I hope you can read it as one way of thinking. If you don’t like risk, saving money is the way to go.
What is Mom’s Daddy Strain
Mom’s rating of daddy. It’s natural to help with work and house. It is difficult to raise stocks. By the way, it is said that it goes down momentarily.
Don't forget to enjoy "children's hearts"!
Let's change "boring" to "fun"!
Fun will be the sustenance of life ♡
This is a blog that focuses on child-rearing articles, YouTube video introductions, and miscellaneous articles from a professional and father's perspective by a social worker.
♥ Furari-chan (6 years old) The most beautiful girl in Japan. Gluttonous but small meal. I love cute things.
♥ Funi-kun (8 years old) A timid but kind brother. I love Pokemon.
■ Blog "Playbox ♡" (2021 / 10 ~)
Passed Google Ads examination (2022/1 ~)
■ Daughter Furari-chan and YouTube
"Play box ♡ Play box" (2021/9 ~)
Joining UUUM network (2021 / 10 ~)
Achieved 1000 registrants (2022/2)
I hope that playing with my father will lead to discoveries and learning.
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