This Is How The Japanese Stock Trader Turned $13k into $153 Million!

Japan¡¯s famed ¡®bedroom¡¯ trader Takashi Kotegawa is one of its most famous intra day traders,who made a fortune from trading stocks on the Tokyo Stock Exchange in the early 2000s. Apparently he grew a small account of roughly $13,600 to $153 million in just about 8 years! In fact sometimes he even made millions per trade.

Who Is Takashi Kotegawa?

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Also known in the Japanese trading community by his chatroom username ¡°BNF¡± and often nicknamed as¡°J-Com man¡±, Takashi Kotegawa was born on March 5, 1978, in Ichikawa, Chiba, Japan. He reportedly started trading stocks on the Tokyo Stock Exchange in the bear market of 2001.Despite being a multi-millionaire and one of the most popular intra day trader in Japan, he is believed to be a humble guy and doesn¡¯t buy fancy cars or eat lavish meals.

However, one thing that he reportedly did splurge on, was a top-floor apartment that he bought for a whopping 400 million yen.

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Takashi¡¯s big move

In 2005, Takashi made millions through a single trade in J-Com Holdings after its IPO on the Tokyo Stock Exchange.

That opportunity was thanks to an error committed by a trader at Mizuho Securities, who accidentally sold 610,000 shares at one yen each instead of selling one share at 610,000 yen! That huge sell order sent the stock price crashing, and ofcourse, Takashi saw an opportunity over there.

He bought 7,100 shares while the price was down. While he chose to sell a part of his position in the bounce and held some shares overnight, he had reportedly made more than $17 million at the end of that trade.

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Takashi Kotegawa¡¯s Trading Strategies

It's natural to wonder about the ¡®magic¡¯ strategy that Takashi used to make millions in the stock market. But all that's been clear till day due to the absence of adequate details about it. Neither does he share every trade publicly nor much information at all about how he made his millions.

But apparently, it's believed that he thinks that it¡¯s easier to make money in bear markets than in bull markets, and looks for short-term rebound plays in stocks that are down.

Some people describe Takashi Kotegawa¡¯s trading strategy as divergence day trading, wherein he uses indicators like Bollinger Bands, Relative Strength Index (RSI), volume ratio, and the 25-day moving average for decision making. He also supposedly likes to buy stocks that are at least 20% below the 25-day moving average and then profit from the bounce.

And, since the markets constantly change, he tends to adapt the percentage he looks for based on the overall market and individual sectors. He also gets a feel for how stocks in different sectors move and how fast they rebound, and then accordingly takes his decisions.

More importantly, like all day traders, he too likes to capitalize on momentum, especially when the market is down.

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