Sölf;176778395 said:
You do realise that 99% of investors lost money, a lot of money, this week? The richest man in Asia lost $3.6bn in a day. It's nice that you want to get into investing, but don't do it because of lucky trades like this.
-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
Japanese Day Trader Made $34 Million During Monday/Tuesday Market Panic
- Thread starter Akira
- Start date
- Status
You do realise that 99% of investors lost money, a lot of money, this week? The richest man in Asia lost $3.6bn in a day. It's nice that you want to get into investing, but don't do it because of lucky trades like this.
Derpcrawler
Member
Investors =/= traders. Those that were playing on market falling to bottom made huge bucks.
Dreamgazer
Member
This.
Did I lose money in my 401K/IRA investment? yes. (which ultimately doesn't matter cause it's not like I liquidated them.)
Did I make a good deal of money (not 900K good, but still) from trades this week? yes.
dave is ok
aztek is ok
Shorting stocks like that requires more balls than 99% of people have.
There is no limit to how much you can lose if you're wrong
There is no limit to how much you can lose if you're wrong
Indrid Cold1
Member
Fantastic.
PepsimanVsJoe
Member
Yep.
I have about $10k I could use to play the stock market with.
But if I lost, it'd take a year or so to make that money back.
Cow Mengde
Banned
I see a manga/anime adaptation soon.
Shmeagatory94
Member
WHAT?! Like you made 900k over several years or like you made 900k in a matter of days?
I know nothing of stocks so maybe making 900k is nothing but to a broke dude like me that is CRAZY.
Derpcrawler
Member
In last 12 days.
Shuggananas
Banned
Yeah don't forget to gamble a lot too
They're betting that at least half of short sellers don't know what they're doing, I'm guessing.
So I guess this story works out for them, because there's going to be tons of people who're about to blow their savings trying to day trade...
Dreamgazer
Member
Actual lenders of the stocks usually gets nothing/never notice anything.
Most short sells are done through brokerages, who are lending out other people's shares that they happen to be in control of. There's no individual that's crazy enough to be the lender of a short. The brokers gets the interest on the loan + commission. In return, they also have the to bear the risk of loss if the short seller isn't able to return the shares. Their lost is restricted base on margin requirement.
That said, it's not like they get some huge benefit if the short seller screws up big time.
TheRagnCajun
Member
Not Shown: the thousands of day traders that lost a fortune this week. This is basically gambling on borrowed money. There is a winner bias in stock trading discussion because people love to brag about their wins and not thier losses. True investors make their fortune on playing the long game, not trying to time market fluctuations.
Dreamgazer
Member
The brokers don't get any more/less benefit if you win or lose, they benefit from day trades in general from commission + fees.
In other words, it always work out for them as long as people keep day trading.
Seems like the brokers would lose out, no?
Unless most short sellers fail in in their gamble and the consistency of commissions and interest outweigh the risk of a MIA short seller.
Yeah I wrote that before I saw your post. I get it now.
Unless most short sellers fail in in their gamble and the consistency of commissions and interest outweigh the risk of a MIA short seller.
Yeah I wrote that before I saw your post. I get it now.
oreomunsta
Banned
I'm not going to even pretend to have a good knowledge of stocks and trading, but I want to understand how you did this. Because the markets were just so bad, stocks were dirt cheap. However, due to the inevitability of the markets bouncing back briefly, you just waited a few days to sell the large amount of cheap stocks for a large net profit. Is that right?
LoveCake
Member
You have to bet big to win big, fair play to him, just hope he doesn't try & ride his luck again & loses the shirt off his back.
Looks like he is into games as well looking at his twitter feed?
Looks like he is into games as well looking at his twitter feed?
Dreamgazer
Member
Kinda...
But the thing is that Brokers have more time to move shares around (as long as they are in business), but the short sellers don't. The broker will force sell any other securities the short seller have if they can't pay up the margin call/margin requirement. It's not like someone is hounding on the broker when they grab shares from random investor #5 who doesn't even know their shares are being loaned.
toxicgonzo
Taxes?! Isn't this the line for Metallica?
mmazurkiewicz
Member
This right here.
How much of the trading is limited by starting capital?
I figure someone would need enough for collateral and a cushion in case it goes south, so this guy was already looking at a few million before making his gamble.
thanks, didn't know it existed
I love reading about people like this. I made out very well from the Monday/Tuesday correction by securing Apple at $95 and Tesla at $195 at the opening bell Monday, but I badly messed up by not re buying Tesla at $215.50 on Wednesday. I saw it, but just didn't feel comfortable with how Tesla was not increasing along with the market most of the day. Now it's at $250. Damn, you rarely get 48 hour bounce backs like that.
- Status
Similar threads
- Locked