Nikkie volatility and tales of Japanese day traders.
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