As introduced in a previous article, this is about swing trading Transaction, where the stock price rose following the earnings announcement, hitting almost exactly the profit-taking point I had set in advance.
Only 300 shares remain, with a pre-tax profit of 740,605 yen. I consider this a sufficient result for myself.
In this article, I would like to write about why I targeted Transaction for swing trading, how I bought it, and the points I was careful about when selling.
Reasons for targeting Transaction
The reason I chose Transaction as a target for swing trading is clear.
Last year, when I was looking for companies to purchase within the NISA growth investment quota, I conducted a corporate analysis of Transaction and actually acquired shares in my NISA account.
That Transaction stock price dropped significantly after the announcement of the third-quarter earnings for the fiscal year ending August 2026, which was released on July 15, 2026.
However, when I checked the earnings content, both sales and each profit item exceeded the same period of the previous year, and it had updated its record high as a 3Q cumulative total.
Ordinary profit was 5.03 billion yen, up 10.9% year-on-year, and the progress rate against the full-year plan was also a steady 78.1%. Even for the 3Q alone, ordinary profit was up 10.1% year-on-year, and although growth has slowed slightly, I did not think that growth itself had been lost.
Therefore, I judged that the stock price decline this time was not due to deteriorating performance, but was mainly caused by ‘selling on the news’ due to profit-taking after good news was released.
Things I was careful about when acquiring
I have a bad habit of panic-buying when a stock that has announced strong earnings drops sharply, only to end up holding unrealized losses for a while afterward (lol).
Even if there is no problem with the corporate analysis, if the timing of the purchase is too early, I have to endure unrealized losses until the stock price stops falling. Therefore, to improve this habit, I have set a rule for swing trading that ‘for one stock, I will only buy once a day’.
For Transaction this time as well, I did not buy it all at once immediately after the sharp drop, but gradually bought more while watching the subsequent stock price movements.
This rule of ‘only buying once a day’ may not necessarily be an efficient strategy for aiming for large profits in a short period. However, I like it because it prevents me from buying in a hurry and allows me to continue trading while suppressing the psychological burden caused by unrealized losses.
For me, it is important not only to maximize profits but also to be able to continue buying and selling while maintaining calmness.
Things I was careful about when selling
Although I continued to buy Transaction, it did not reach my pre-set profit-taking point before the full-year earnings announcement on October 15. As a result, my holdings increased to a maximum of 8,300 shares.
Regarding the earnings, I expected them to be good, but in the stock world, a good earnings report does not always mean the stock price will rise.Therefore, I decided to take a small profit on 1,200 shares the day before the earnings announcement to reduce my risk slightly.
As a result, since the stock price rose during the session the next day, I missed out on some of the profit, but by taking profit on the shares I had acquired at a higher price the day before, I ensured that even if the stock price were to fall afterward, I would be in a position to limit my unrealized losses.
Therefore, I have no regrets about this decision.
Also, when selling, as always, I set limit orders in stages, starting with the shares acquired at the highest price.
By doing this, I believe that if the stock price rises, I can lock in profits sequentially, and even if it doesn’t reach all my profit-taking points, I can maintain a state where the remaining shares have unrealized gains.
These selling methods are all tricks to continue trading without stress.
Looking only at the results, I might have made a larger profit if I had held onto them until a higher price, but what I value is not just maximizing profit.Suppressing anxiety about unrealized losses and maintaining a state where I can calmly observe the market and make the next decisionis just as important to me.
Summary
In this Transaction swing trade, I was able to earn a profit of 740,605 yen before taxes as of now.
What I value is not maximizing profit, but finding buying and selling opportunities based on corporate analysis and continuing to trade calmly while suppressing unrealized losses.
This time as well, by devising ways to buy and take profits, I achieved a result that I am satisfied with.
In our membership, ‘FIRE Couple’s Investment Lab,’ we share our thinking process and trading decisions in real-time for swing trades like this one, as well as our holdings and subsequent decisions. If you are interested in the actual process of investment decision-making, please take a look.
FIRE Couple’s Investment Lab
Even after FIRE, we, as a couple, continue to invest and record our thoughts and investment decisions on note.
In our free articles, we mainly publish our track record of dividends and distributions, the transition of our asset value, corporate analysis, and our thoughts on investment.
On the other hand, in our membership, ‘FIRE Couple’s Investment Lab,’ we plan to go a step further and publish more specific investment records, such as which stocks we actually bought, why we bought them, and how we decided to buy and sell.
What kind of investment decisions does a couple make after FIRE using their actual money? If you are interested in that, please take a peek.
It is operated at 500 yen per month, with the first month free.
I hope to think about investment together with those who resonate with the idea of ‘looking at the company, not the stock price’.
