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Mystery Gamer Makes Millions Moving Markets In Japan
HughPickens.com writes Jason Clenfield writes in Businessweek that tax returns show that a former video game champion and pachinko gambler who goes by the name CIS traded 1.7 trillion yen ($15 Billion) worth of Japanese equities in 2013 — about half of 1 percent of the value of all the share transactions done by individuals on the Tokyo Stock Exchange. The 35-year-old day trader whose name means death in classical Japanese says he made 6 billion yen ($54 Million), after taxes, betting on Japanese stocks last year. The nickname is a holdover from his gaming days, when he used to crush foes in virtual wrestling rings and online fantasy worlds.
"Games taught me to think fast and stay calm." CIS says he barely got his degree in mechanical engineering, having devoted most of college to the fantasy role-playing game Ultima Online. Holed up in his bedroom, he spent days on end roaming the game's virtual universe, stockpiling weapons, treasure and food. He calls this an early exercise in building and protecting assets. Wicked keyboard skills were a must. He memorized more than 100 key-stroke shortcuts — control-A to guzzle a healing potion or shift-S to draw a sword, for example — and he could dance between them without taking his eyes off the screen. "Some people can do it, some can't," he says with a shrug. But the game taught a bigger lesson: when to cut and run. "I was a pretty confident player, but just like in the real world, the more opponents you have, the worse your chances are," he says. "You lose nothing by running." That's how he now plays the stock market. CIS says he bets wrong four out of 10 times. The trick is to sell the losers fast while letting the winners ride. "Self-control is so important. You have to conserve your assets. That's what insulates you from the downturns and gives you the ammunition to make money."
"Games taught me to think fast and stay calm." CIS says he barely got his degree in mechanical engineering, having devoted most of college to the fantasy role-playing game Ultima Online. Holed up in his bedroom, he spent days on end roaming the game's virtual universe, stockpiling weapons, treasure and food. He calls this an early exercise in building and protecting assets. Wicked keyboard skills were a must. He memorized more than 100 key-stroke shortcuts — control-A to guzzle a healing potion or shift-S to draw a sword, for example — and he could dance between them without taking his eyes off the screen. "Some people can do it, some can't," he says with a shrug. But the game taught a bigger lesson: when to cut and run. "I was a pretty confident player, but just like in the real world, the more opponents you have, the worse your chances are," he says. "You lose nothing by running." That's how he now plays the stock market. CIS says he bets wrong four out of 10 times. The trick is to sell the losers fast while letting the winners ride. "Self-control is so important. You have to conserve your assets. That's what insulates you from the downturns and gives you the ammunition to make money."
Let me play games all day and some day I'll be rich!
Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
So, no studying PtoE, company fundamentals, etc. etc. Further proving that the Stock Market is almost entirely disconnected from the underlying companies. Basically, it's a Ponzi scheme.
The US government would have invested Social Security in the Stock Market, but they can't find a spokesperson from the financial industry you can advocate the scheme without drooling at the prospect.
Nevermind the selection bias.
I mean, maybe its like interviewing lottery winners and asking them what their secret is. Maybe the secret is simply "I played", and "somebody has to win".
I'm not saying the guy isn't smart or disciplined or has the right mindset to be a trader, but that doesn't mean he's really an "exceptionally" genius at it.
Literally millions of day traders out there doing technical analysis and picking stocks. Its a bit like monkeys and typewriters in a way. Does the monkey that produces something legible really have any truly special talent?
No.. $15 billion volume not investment. He could have started with 1M and traded 15000 times.
So who is selling when he is buying? Wouldn't he constantly be behind the curve? Paying too much for the stock and selling for too little?
You are touching on one of the great debates. Momentum trading is one of those anomalies that should not work in theory but does in practice. Why? Ideas have been kicked around for the last 20 years. Here is a link to a possible explanation.
http://www.economist.com/news/...