Why are the Japanese day traders so rich?

Turveyd said:
Try, you'll never MAKE a BILLION playing it safe!!

Presuming you only have £4.72 left in the world like me LOL
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In this thread, there is no evidence of what the guy originally had in his account before he took the trade. For sake of argument, I assumed he had 1 billion dollars. Why did he have to make the 1 billion in trading to have that money in the first place? Maybe he was the patent-holder for the Walkman, or the majority stakeholder of Nintendo since 1956?

Jeez. I was working from a baseline here, of having a billion in his account BEFORE daytrading.
 
Overnight said:
In this thread, there is no evidence of what the guy originally had in his account before he took the trade. For sake of argument, I assumed he had 1 billion dollars. Why did he have to make the 1 billion in trading to have that money in the first place? Maybe he was the patent-holder for the Walkman, or the majority stakeholder of Nintendo since 1956?

Jeez. I was working from a baseline here, of having a billion in his account BEFORE daytrading.
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Then I dunno, but I sure as hell hate him even more!!
 
Turveyd said:
Then I dunno, but I sure as hell hate him even more!!
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Why would you? If the guy has a billion in his account, he's at 7.5% risk with a 75million drawdown. You should pity him instead, because that is bad risk:reward ratio, yes? The number of digits matter not.

75 million to a billion is no different than 75 bux to 1000. The numbers jump at you, but the percentages never lie.
 
i read that one of the reasons why so many japanese people daytrade is due to the country maintaining low interest rates for so long that they need to park their cash in non-fixed-income instruments.

real-estate is a no-go as japanese housing prices have gone downhill since the late 80s so they're mostly left with parking their money in equities.

weak Nikkei index (relative to the US), which still hasn't recovered since its '89 high, means the japanese don't have the luxury of simply dumping their 401k into index ETFs and being able to ride on the coattails of infinite QE and unlimited corporate bailouts like the US, leading to a shorter-term trading mindset which maybe explains the prevalence of daytrading.

japanese culture is still extremely conservative with strict gender roles where women are often expected to leave their job after marriage. with so much time left during the day as housewives, many of them turned to trading while their husbands were still at work, leading to the popular term "Mrs. Watanabe" in the forex world. the creation of this culture leads to more people being exposed to the world of trading which leads to a greater pool of talent.

east asians in general do love gambling (majong, go-stop, pachinko) and seem to have high risk-appetite. it's funny though b/c even among east asians, you see cultural differences play out in how they approach risk.

for example, at the baccarat tables in Macau, Chinese people would usually increase their size when they're on a good run and conversely decrease their size when they're on a bad run. on the other hand, Koreans would decrease their size when they're on a good run (wanna lock in profits quickly) and increase their size when they're on a bad run (revenge trading to make up losses).
 
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