July 6, 2013

Nikkie Volatility and Japanese Day Traders

Nikkie volatility and tales of Japanese day traders.

Nikkie 225

Nikkie is very volatile.

Bloomberg on how Japanese traders trade this volatility. 
The 34-year-old day trader first sold 50,000 shares at 558 yen ($5.70), then three more lots at 1-yen intervals as the stock dropped. He got out $2,500 richer, repeated the trade, and seconds later had $1,000 more. Within minutes of the market opening, the former water-purifier salesman had made more than the average Japanese person earns in a month.

Stringing together 20 or 30 similar trades each day, Murakami said he’s almost doubled his money to $750,000 this year.

When it is easy to borrow … 
On an average day, the group of seven day traders to which Murakami and Tesuta belong buy and sell somewhere between $80 million to $100 million in Japanese stocks, according to estimates from the members.

Tags: nikkie volatility, japanese day traders, trading tokyo electric