The theme this time is the stock market. That said, it’s not about how the stock market works and how it makes a profit.

Certainly, by talking about “there are such types” of stocks and explaining them in detail, it is possible to tell “how can we make a profit” from each method. .. However, it is a second brew of what is said in every manual.

It can’t be helped if there are countless articles with similar content on the web. I would like to send this article to those who are tired of seeing such articles.

What does stock trading look like to you? Some fight aggressively, while others focus on defense and try not to take risks as much as possible. For example, isn’t the former stock trading method CFD trading ?

By using this, some kind of derivative trading becomes possible. Derivatives are “financial derivatives”, and CFD trading allows you to trade large amounts even if you have limited resources.

Think of it as a concept similar to FX. Perhaps you’ve heard that Forex is a big risk, and some people have lost a lot of money because of it. In fact, the risk is high. No, more accurately, you can increase your risk.

As with any type of investment, there is no risk involved in making an investment. Every transaction involves the possibility of losing money. That is why it is a transaction. With this in mind, I would like to share with you how to reduce risk.

No one seeks risk. It is the result. So when does the risk increase? From now on, I will talk more and more about how to perceive risk.

When seeking high profits, one downplays the existence of risk. There is a reason for this. No wonder, given the fact that many people jump into a delicious story in front of them. That is what humans are all about.

This psychology also applies to trading stocks. For example, if you are told, “You can expect this much return,” then you feel like investing now, right?

Of course, there are many other reasons why people are attracted to investing. However, what makes people captivated is the return. It is a hope for the future and what kind of results will be obtained.

People are creatures that entrust their hope to the future. For example, it’s more hopeful when you imagine it and act towards it than when you’re eating something delicious. Think about how your child is making noise in the car heading to Disneyland.

When you arrive at Disneyland, of course, you’ll get excited, but that excitement doesn’t last forever. Rather, “familiarity” intervenes there, and the emotions quickly cool down. The same applies to all human ways of holding hope.

The same is true for investments. How much return can you expect ? This brings excitement to people. Thank you. We never intend to evacuate this, but rather, human beings can act by having such a desire or hope that “I want this, I want this, I want to achieve this state”.

The same tendency can be seen in human history. Always seek new growth and stimulus. It is because of this mechanism that we have been able to continue evolving in this way.

The same is true for the stock market. For example, consider the Dow Jones Industrial Average. It is a product called an index. I personally recommend investing in this. The reason is that it has been growing steadily for decades. There are no mysterious tricks. The point behind growth is “what is this tied to?”

Think of it as being connected to the entire market. In other words, each company will continue to survive as a company, develop new products, and meet customer expectations. As long as that is the case, growth will continue. And the value of the index associated with this continues to rise. Therefore, by investing in this, it is possible to secure a certain level of stable profits.

It’s a bit exaggerated, but it can also be described as “as long as humanity continues to grow, the index will grow.” To that extent, it is a concept that is closely related to the history of humankind.

The reason I’m writing this article is by no means “recommending” to invest in the kind of index. Rather, it is important to understand the mechanics behind it.

After grasping this, if the question “Why are all people going to take risks without investing in this?” Comes up, it is “a thing that has been done”. Many people haven’t succeeded in thinking that much.