Conclusion: A Lighthearted Approach to Japanese Stock Trading
Recently, I’ve been exploring a more active style of investing by purchasing a few Japanese stocks, using strategies I picked up from Mark Minervini’s book on growth stock investing. So far, I’m happy to report that my investments are in the green! This new venture is separate from my main long-term investments, so I plan to keep things relaxed and fun, with any profits going toward things that will bring joy to my family.
Embracing a New Approach to Investing
Most of my investments are tied up in long-term holdings, primarily in U.S. stocks, where I apply a “buy and hold” strategy. This approach has served me well, especially given the U.S. market’s growth over the past decade. However, after reading Minervini’s book, I became interested in trying a more active, growth-focused approach – but with a twist. Instead of diving headfirst into more volatile international markets, I decided to dip my toes into the Japanese market.
Why Japanese Stocks?
While I’ve been primarily focused on U.S. stocks, I’ve kept an eye on Japan’s market for a while. Some sectors in Japan are beginning to show promise, and I wanted to explore this opportunity while diversifying my portfolio. Japan has a lot of well-established companies, but it’s also home to innovative firms that have significant growth potential. This made it an ideal market for experimenting with a more short-term trading strategy.
Following Minervini’s Growth Stock Strategy
Mark Minervini’s approach focuses on identifying stocks with strong growth potential and momentum, particularly in bull markets. His philosophy emphasizes timing – getting into stocks that are on the cusp of a major upward trend. It’s not about holding forever, but rather, strategically entering and exiting positions to maximize gains.
With Minervini’s principles in mind, I’ve been paying closer attention to technical analysis and timing my trades more carefully. The key points I’ve been focusing on include:
- Strong Fundamentals: The companies I’m selecting have solid revenue growth, competitive positioning, and a clear path forward.
- Technical Patterns: Watching for stocks that are forming breakouts or showing consistent upward momentum.
- Risk Management: I’m setting strict stop losses to minimize any downside risks – a core principle of Minervini’s strategy.
Keeping it Casual: A Separate Fund for Japanese Stocks
This new Japanese stock experiment is separate from my main portfolio, which gives me peace of mind. I view this as more of an opportunity to learn and test new strategies, rather than something that will make or break my financial goals. By keeping the amounts small and manageable, I’m able to take a relaxed, almost “hobbyist” approach.
It’s important for me to remember that this is different from my core investing strategy. My long-term wealth-building plan is rooted in U.S. and international stocks through diversified ETFs and individual holdings, so this trading strategy is more about experimentation and fun. I don’t have the pressure to make massive returns in a short time frame.
Turning Profits into Family Joy
One of the main motivations for this new venture is to have a bit of fun with any profits. Instead of just reinvesting everything or obsessing over compounding gains, I’ve decided that whatever I earn will go toward making my family happy. Whether that’s a nice dinner out, a special trip for the kids, or something my wife has been eyeing – this strategy allows me to combine investing with personal rewards.
By tying my trading success to family experiences, it adds a positive, meaningful layer to this experiment. It’s not just about numbers on a screen; it’s about using those numbers to create lasting memories.
A Relaxed Mindset for Short-Term Trading
For anyone looking to get into more active trading, here’s my advice: Keep it light. Separate your core long-term investments from your short-term trading experiments, and view it as an opportunity to learn. Here’s how I’m keeping things balanced:
- Start Small: I’m not putting huge sums into any one stock. This allows me to stay relaxed and avoid stress if a trade doesn’t go as planned.
- Do Your Research: Even though this is more casual, I still make sure to research the companies I’m investing in. I look at their fundamentals and pay attention to the news that could impact their industries.
- Set Clear Limits: To avoid getting caught in emotional trading, I set stop losses and have a clear exit plan for each stock. If it hits a certain point, I sell. This keeps things disciplined and prevents me from hanging onto losers.
- Celebrate Wins: Profits, even small ones, are a reason to celebrate! It makes the process enjoyable and gives me something to share with my family.
What’s Next?
As I continue this journey, I’m excited to see how things unfold. The Japanese stock market offers plenty of opportunities, and by applying Minervini’s growth stock principles, I hope to keep seeing gains. But more importantly, I’m looking forward to turning those gains into something tangible that my family can enjoy.
The biggest lesson I’ve learned from this experience is that investing doesn’t have to be all about hard numbers and long-term plans. Sometimes, it’s okay to take a step back, have a little fun, and enjoy the process. After all, what’s the point of building wealth if you don’t take the time to enjoy it along the way?
