Lecture on BNF: The Legendary Japanese Day Trader

Introduction

• Masayoshi Son: Billionaire investor seeking new wealth avenues in 2005.
• BNF: Renowned for the J COM trade in 2005, became a Japanese legend known as the "J COM Man."
• Lifestyle: Simple, introverted, focused on trading, ramen, and anime.

Early Life and Inspiration

• Background: Grew up in Osaka, introverted lifestyle.
• College Days: Discovered trading through NHK's series on finance, inspired by hedge fund manager Victor Niederhoffer.
• Challenges: Lack of resources in Japan; self-taught through diligent study of charts.

Trading Journey

• Initial Struggles: Entered the market post-Internet bubble burst in a bear market.
• Contrarian Trading: Focused on stocks deviating from the 25-day moving average.
• Sector Analysis: Different deviation targets for various sectors (service, IT, emerging stocks).
• First Success: Grew his account to $1 million by 2002 despite bear market conditions.

Transition to Bull Market

• Challenge: BNF's strategy needed adaptation for the bull market post-2002.
• New Strategy: Identifying and trading lagging core companies during a bull run.
• Profits: Account grew by $10 million in two years.

The J COM Trade

• Incident: Mizuho Securities mistakenly sold 610,000 shares of J COM at ¥1 each.
• BNF's Action: Purchased 7,100 shares at a limit down price, securing significant stake.
• Outcome: Profited ¥2 billion, earning legendary status.

The 2008 Financial Crisis

• Lehman Brothers: Mistake in US markets led to a $6.5 million loss.
• Global Collapse: Identified opportunities in Japanese markets during global downturn.
• Recalibrated Strategy: Updated deviation targets for quicker rebounds in Japanese stocks.

Recovery and Growth

• Return to Success: Profited $12 million by timing the Japanese market rebound.
• Diversification: Invested in commercial real estate for stability and tax incentives.
• Future Goals: Aims to become the first billionaire bear bedroom day trader.

Conclusion

• BNF's Philosophy: Focuses on trading discipline, tuning out noise, understanding market dynamics.
• Lifestyle: Prefers simple living, finds fulfillment in trading rather than material wealth.

Key Takeaway

BNF exemplifies dedication, adaptability, and discipline in trading, achieving legendary status through a combination of strategy, risk management, and an understanding of market psychology.