4 Stocks I Was Interested In But Didn't Buy | Why I Passed on Them in My Swing Trading

In swing trading, there are not only the stocks I bought, but also stocks I was interested in but didn’t buy.

This time, I will look back at four stocks I decided not to purchase and the reasons why. This article is not about “how the stock price moved afterward,” but rather an organization of what I was unable to judge at the time I considered them.

593A Tier IV | Strong Short-Term Overheating

I was interested in Tier IV, but I felt there was strong short-term overheating, so I decided not to buy. I thought that entering at this timing would likely result in buying at a high price.

When I see a stock with momentum, I feel like it might still go up. On the other hand, if I buy in a hurry after seeing it rise, my judgment wavers even with a slight correction.

Of course, some stocks continue to rise after a sharp increase. Even so, I could not find a buying opportunity that I was convinced of at that time. I do not make the fact that it is rising a reason for buying, is my judgment.

6920 Lasertec | Difficult to Judge Based Only on the Movement of Semiconductor Stocks as a Whole

Lasertec is also a stock I have been watching but have not purchased.

What I find difficult is that it sometimes moves in tandem with other semiconductor stocks, and other times it moves completely differently. I cannot decide the timing to enter Lasertec based solely on the reason that “semiconductor-related stocks are strong today.”

I usually check moving averages, recent highs, and trading volume, focusing on the chart. However, for this stock, I have not been able to grasp a timing where I feel like “I want to buy here.”

I find the magnitude of the price movement attractive. Even so, I feel that a stock with price movement and a stock that is easy for me to buy are not the same.

9984 SoftBank Group | Could Not Read the Trend

Although I am interested in SoftBank Group, I have not reached the point of purchasing it. This is because the trend is difficult for me to read, and I could not grasp the timing to enter.

The more attention a stock gets, the more I feel like I don’t want to miss the rise. However, if I buy just on the feeling that “it looks like it will go up,” it becomes difficult to make decisions when it moves differently than expected.

What kind of movement should I confirm before buying? If it moves in a certain way after I buy it, what should I do to rethink? I passed on it because I could not organize that path in my own mind.

5401 Nippon Steel | It Was Already Over 600 Yen When I Noticed the Rise

Nippon Steel was already over 600 yen by the time I noticed the rise. I thought that buying from there might result in buying at a high price, so I decided not to purchase it.

Like with Tier IV, I am cautious about chasing a rise after the fact. However, in the case of Nippon Steel, the fact that I was late in noticing the rise was also a major reason.

If it rises further after I pass on it, I might think, “I should have bought it.” Even so, rather than forcing myself to buy a stock I was late to notice, I would rather look for the next opportunity.

When I decide “not to buy”

The reasons I passed on these 4 stocks can be broadly divided into the following two categories.

• Chasing the rise seemed likely to result in buying at a high: 593A, 5401

• I couldn’t decide on my own entry timing: 6920, 9984

Even when I find a stock I’m interested in, I don’t buy it immediately. I focus on the charts, checking the relationship with moving averages, recent highs and resistance lines, and trading volume. Even then, if I can’t explain the rationale for buying, I pass.

This doesn’t mean I judged that “the stock won’t go up in the future.” It is a judgment that “with my investment style, I couldn’t find a reason to enter at this moment.”

The conditions I check when finding stocks are introduced in another article, “How do you find stocks? My stock search method for swing trading.” If you want to know how I find candidates first, I would be happy if you read that one.

The items I check after finding candidates are summarized in “Check these before buying | Points I look at in swing trading.” This article is a practical example of deciding “not to buy” after performing those checks.

I also want to keep a record of the reasons why I didn’t buy

Stocks I didn’t buy sometimes go up later. If you look only at that result, you might feel that passing was a mistake.

However, it is also a fact that I couldn’t decide on a buying timing at that time. Rather than changing my judgment based only on results, I believe that reflecting on “what was missing that made me pass on the purchase” leads to the next decision.

On the other hand, even after buying, there is hesitation about “whether to keep holding or sell.” What I check after buying is introduced in “Stocks are difficult after you buy them. Points to check while holding in swing trading.”

Summary

The reasons I passed on the purchase this time are as follows.

• 593A Tier IV: Short-term overheating was strong, and I was wary of buying at a high

• 6920 Lasertec: Its movement was not consistent with other semiconductor stocks, making it difficult to judge the timing to buy

• 9984 SoftBank Group: I couldn’t read the trend and couldn’t grasp the timing to enter

• 5401 Nippon Steel: By the time I noticed the rise, it had already exceeded 600 yen, so I avoided chasing it

In swing trading, your own judgment criteria are reflected not only in the stocks you bought but also in the reasons you didn’t buy. From now on, when I find a stock I’m interested in, I want to think about “why I’m not buying it now” just as much as “why I’m buying it.”

※ This article is a reflection of my own investment decisions and does not recommend buying or selling specific stocks.