Lecture Notes: Takashi Kotegawa and His Trading Strategy

Introduction

• Discussed research on Takashi Kotegawa, known as "Bedroom Trader."
• Made $13,000 into 153 million dollars.
• Initial capital from a fluke trading incident.

Key Incident

• Occurred in 2005 with J.Com Holdings IPO.
• Mistake by Mizuho Securities: Sold shares at 1 yen instead of 610,000 yen.
• Kotegawa capitalized by buying 7,100 shares.
• Made immediate gains by selling some shares.

Trading Strategy

• Prefers bear market conditions to find opportunities.
• Uses several technical indicators:
  • Bollinger Bands
  • RSI (Relative Strength Index)
  • Volume Ratios
  • 25-day Moving Average
• Focus on stocks 20% below 25-day EMA during bear markets.
  • Uses MACD for further analysis on smaller time frames.
• Strategy execution:
  • Identifies stocks below moving average.
  • Checks fundamental aspects for selection.
  • Buys when price is near support and MACD shows crossover.

Trading Approach

• Not driven by material possessions; simple living.
• Made significant profits over 8 years.
• Utilizes scanning tools for finding stocks fitting criteria.

Conclusions

• Initial success due to an error unlikely to be repeated.
• Success achieved over long-term investment.

Call to Action

• Encouraged viewers to comment "video" for more trader stories.
• Suggested a playlist for learning stock market basics.
• Option trading webinar offered with an LTP calculator tool.

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• Note: Webinar and additional resources linked in the description for further learning.