In late March 2025, President Trump's declaration that mutual tariffs would encompass all nations sent shockwaves through global financial markets, resulting in a substantial stock market downturn. This announcement led to a chaotic atmosphere in the stock market, particularly noticeable in Japan and the United States. By April 2, tariffs were officially revealed, and the Tokyo Stock Exchange responded dramatically, with the Nikkei index plummeting from 40,000 yen at the start of the year to a low of 31,136 yen by April 7. However, almost astonishingly, within just a month, the index rebounded to 36,779 yen, highlighting the market's volatility during this period.
Typically, the users of STOCK POINT (referred to as "SP users"), who normally approach market operations with a level head and a strategic mindset, found themselves in a state of significant confusion amidst this unpredictable market behavior. This article aims to analyze the trading patterns and actions of SP users during this critical timeframe.
Examining the market fluctuations from April 1 through May 7, 2025, the trading behaviors of SP users reveal unique insights into their strategies in response to volatile situations. Notably, a close examination of SP users' buying (indicated by the red line) and selling trends (represented by the blue line) from April 1 to April 9 shows that they mirrored each other almost perfectly, a rare occurrence in volatile markets. As the Nikkei index declined, SP users continued to execute both buying and selling transactions in almost equal measure. This is contrary to the usual market behavior where falling stock prices typically result in increased buying activity and rising prices trigger more sell-offs.
An intriguing aspect of the timing of SP users' confusion is revealed in their buy and sell behaviors, which showed distinct periods of turmoil. Between April 2 and April 8, sellers reacted strongly to fluctuations in the market, resulting in an acceleration of selling driven by panic and uncertainty. Conversely, the buying indicators from SP users during this same period suggest they were initially responsive to market movements, acting inversely to the price declines until a significant drop on the 8th caused their behaviors to become erratic.
Following a stabilization in stock prices post-April 12, which witnessed a steady upward trend, SP users’ buying behavior began to settle down, suggesting an end to their short-term confusion. On the other hand, while the selling activity overall reduced in volume, SP users continued to respond with sensitivity to price increases, indicating a return to their usual trading patterns.
The dramatic decline in stock prices globally creates an environment where forecasting price movements becomes incredibly challenging. In such circumstances, maintaining a calm stance, verifying information, and avoiding impulsive trading decisions are essential for investors, particularly in the unpredictable climate of stock markets.
About STOCK POINT
STOCK POINT Inc. aims to serve as an infrastructure service that connects investment with daily life and facilitates social connections and development. The company has developed a unique points management system that fluctuates in value alongside various financial products, allowing users to gain a "stock investment experience". Its innovative business model includes patents for stock-linked points in Japan, the United States, and Taiwan. STOCK POINT actively collaborates with local financial institutions and is pursuing fintech solutions addressing issues like decarbonization through J-Credits.
Company Overview
- - Company Name: STOCK POINT Inc.
- - Location: Hibiya Fort Tower 10th Floor, 1-1-1 Nishishinbashi, Minato-ku, Tokyo, Japan
- - President: Kiyomi Tsuchiya
- - Established: September 12, 2016
- - Website: https://www.stockpoint.co.jp/