Japanese Day Trader Makes $34 million

Discussion in 'Wall St. News' started by justrading, Aug 28, 2015.

  1. just21

    just21

  2. just21

    just21

    #22     Aug 28, 2015
  3. It's not hard to believe, but what is missing about the numbers is what he started with 10 years ago. Let's say you have a large account and shorted 1,500 ES futures over a week or two when the ES was over 2,100. He traded Nikkei futures, 1,500 contracts, I'm not sure about the exact notional value comparisons, but for the sake of argument, what is the profit of ES 1,500 contracts at 2,100 when ES opened limit down at 1,870?

    230 points x 50 x 1,500 = $17.25 million

    It's all relative to your account size. Sure, it was a gigantic bet that could have created a liquidation call. Hedge funds make concentrated bets all the time, and some "blow up" as well. Like others have said, this guy had a lot of nerve to take on that size.

    There was $475 billion worth of margin being held in the U.S., a lot in China as well. This was discussed on ET, I believe you were the one that posted the article from NYSE.

    Margin loans are "callable" and the banks can call them at ANYTIME. He nailed the drop when the banks called in the loans.
     
    #23     Aug 28, 2015
  4. According to the Japanese article just21 linked, he started with 1.04 million yen in 2000. I don't have the average rate but if I take USD/JPY as 108, that would be a little over $9,600 as starting capital.
     
    #24     Aug 28, 2015
  5. Ok thanks. So around $10k to $150 million in ten years, sounds improbable.
     
    #25     Aug 28, 2015
  6. fxwizard

    fxwizard

    Is this CIS the same guy who called himself BNF (Takashi Kotegawa) who made $20M on a fat finger Mizuho securities crash a while ago? BNF also made $150M from $10K in the course of 8 years.
     
    #26     Aug 28, 2015
  7. According to the article they are not the same but CIS also profited from that mistake. I suspect his current status is true, given the statements and tax returns, but he probably started with a heck of a lot more than 10K.
     
    #27     Aug 28, 2015
  8. zdreg

    zdreg

    What does CAPS stand for?
     
    #28     Aug 28, 2015
  9. Speculate

    Speculate

    And those are the magic words.

    Most here seem to do the usual 'manual/book/typical retail advise' of risking 1-5%. They have no idea where this comes from or the scenarios when that approach is useful and when its death by a 1000 cuts.

    If you eat like a bird, you can only shit like a bird. Thats most people here I guess, which is why this kind of performance is totally beyond comprehension for most here.

    Betting the farm on every trade is of course a fools errand. However knowing when to size up/down is almost as important as knowing when to trade.
     
    #29     Aug 28, 2015
    Hooter, lawrence-lugar and Jakobsberg like this.
  10. LOL

    COPING MECHANISM - from old farts with 12000 shitposts on ET with 1 foot in the grave already, 10 lot pikers, paper traders, fantasists, wa@nkers & do nothings. Usual for ET

    Why the f@ck are some so emotionally invested in this thread trying to tear him down..?

    Did it occur to some that some traders have a different risk appetite than 60+ yr old farts?


    1/ Usual 2 basic themes (coping mechanism) polluting every thread on ET like a cancer:

    - "if I can't do it, no one else can"
    - "my way is the only right way"


    2/ Does anyone here have a $34 M account...? LOL

    Come back & tell us how it's done AFTER you've EXTRACTED PROFITS of at least $34 Million
    ($1 m would exclude 99.9% of w@nkers on ET)

    This Japanese trader has been trading a long time, amassed a fortune far greater than $34M.


    Hilarious - only on ET. It's like a pissant lemonade stand owner advising Sam Walton (RIP - founder of Wal Mart) how to run a retail business

    LOL


     
    #30     Aug 28, 2015
    copa8, promagma and volpunter like this.