Japanese trader who does not read financial news, earned $ 34 million in just a day

CIS trader (photo: Bloomberg)



Sometimes the reluctance to read the latest news can be a factor affecting the income level of the trader. Thus, the Japanese trader, working under the CIS nickname, in just one day earned about $ 34 million on the collapse of Asian stock markets, writes Siliconrus. As it turned out, this trader does not read financial news, but works according to his own methodology, based on the analysis of courses, plus he trusts his own intuition.



As early as August 12, CIS was able to notice an unusual trend, a trend in the Japanese stock market. Something unusual happened - the market did not recover after the sale of securities and contracts in the previous session. The result - the stock exchange index began to fall.



The trader decided to sell 200 short futures contracts immediately, and he sold another 1,300 such contracts the following week. All this time, CIS has not read the financial news, and has not analyzed the impact of the situation in China or oil prices on trade.

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The trader followed the only rule - sell everything that others sell. After the volume of short futures sales by other stockbrokers was exceeded, CIS began to sell its own futures. Note that the term "short futures" means the calculation of the profit in the event of a decrease in the value of the contract. In this case, the profit in such transactions is only subject to the sale of the contract at the current, high price, and the purchase of the same contract at a lower price. The risks of working with short futures are quite high, but revenues can be quite high.



On August 21, NIkkei continued to show a decline, and CIS continued to trade. This time he did not buy and sell futures, but went against the trend. As soon as the panic began on the exchange, he began to buy contracts at the lowest price. At the end of just one day, he was able to earn about $ 34 million. However, preparation for this day took about two weeks.







To prove the truth of his words, CIS showed Bloomberg copies of his transactions for the period of time mentioned. The trader refused to give his real name because, according to him, he fears extortionists and criminals. Now the general condition of the trader is $ 180 million.