Read of the Day

Check out Bloomberg, which has the crazy stock market read of the day. It’s a longish article about a Japanese day trader. Here’s a sample:

It was six minutes after the opening bell on Feb. 4, and dozens of big-name stocks were still untraded in Tokyo. Telecommunications giant SoftBank Corp. was among those that hadn’t budged. The offer price fell 5 percent, then more, and still there were no takers.

Then an order was filled: 300,000 shares at 6,714 yen — worth just over 2 billion yen, or almost $20 million. Other buyers followed, momentum built, and the stock ended the day as one of only two gainers in the Nikkei 225 Stock Average.

The man who made the market for SoftBank that winter morning was sitting in pajamas in a bedroom cluttered with comic books. He was leaning into the glare of four computer screens and munching a carrot — something to calm his stomach.

Betting on rebounds was dangerous, but he’d watched SoftBank lose a fifth of its value over nine days, and a drop in U.S. markets overnight had driven the shares even lower. The odds were tilting further in favor of a bounce, by his reckoning. He decided to pull the trigger, rat-a-tat-tatting the orders in, Bloomberg Markets magazine will report in its November issue.

Ninety minutes later, he cashed out with a profit of 140.6 million yen. Then it was on to the next trade for the former video game champion and pachinko gambler who goes by the name CIS. The 35-year-old day trader says he made 6 billion yen, after taxes, betting on Japanese stocks last year.

Posted by on September 29th, 2014 at 10:43 am

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