Chapter – 50
Now then.
Let’s think calmly.
I challenged the market, even knowing I was trying to catch a falling knife.
That’s all there is to it.
Yesterday, I made nearly 10 million yen worth of margin purchases.
As a result, I’m sitting on an unrealized loss of 500,000 yen (5%).
But they’re all ultra–high-quality stocks with strong earnings.
Since these are margin trades, I can’t afford any further losses—I must avoid a margin call at all costs.
That’s right, from here on out, it’s no longer time to “attack,” but to “defend.”
I’ve hedged about 30% with Nikkei bear positions.
For semiconductors, I’ll try to cover losses for now with Nasdaq bear funds.
Until the September dividend capture, I don’t want to make profits—I just want to avoid cutting losses.
Tomorrow, my U.S. investment trust will be redeemed, so I’ll have over 1 million yen in cash ready.
First, I’ll add 500,000 yen to the Nasdaq bear.
That will bring the total to 1.3 million yen.
Since it’s a double-leveraged bear, it should hedge against semiconductors.
This is the time to patiently endure, hoping for a rebound toward year-end.
As a hedge against a stronger yen, I’ll also add 500,000 yen in U.S. Treasury bonds.
I’d like to add more margin buys or Nikkei bull positions, but attacking any further would be reckless.
If I can endure until the end of the year,
that in itself will be a step forward.
This is the decisive moment.
If prices fall even more, I’ll use the 1 million yen at the post office to prepare for a possible margin call.
Averaging down should be avoided, but I kind of want to add about 500,000 yen to the Nikkei bull.
But would that be dangerous before a clear reversal?
Still, this flow is terrifying.
No bad earnings have come out at all.
And yet the Nikkei’s PER has fallen to 14x.
It’s a bargain sale, really. (lol)
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Bear funds are investment trusts that function like “short selling.”
They generate profits when stock prices fall, but incur losses when prices rise.
The opposite are bull funds.
And on top of that, these are leveraged products—double, triple leverage, with much larger price swings.
That’s right.
They’re troublesome products, far beyond the control of an amateur like me.
With these “leveraged products,” I will end up taking a massive loss of about 1.5 million yen.
The details will appear in a future diary entry.
Please look forward to it. (lol)
【Email to Nishikawa-kun】
From: Tadashi Kato
Sent: Tuesday, August 6, 2024, 9:25 AM
To: Yoshinori Nishikawa
Subject: Bad for the heart (lol)
I never imagined it would drop 4,500 yen.
I thought the final drop would be, at most, around 2,000 yen, so I placed my buy orders.
I was being extremely cautious with my pricing,
but suddenly 6.5 million yen worth got filled, and I panicked.
When things recovered before noon, I felt relieved, thinking,
“That was a good buy.”
Then…
a plunge so violent it made my hair stand on end—
and in no time at all I was down nearly 1 million yen.
Combined with semiconductors, my unrealized losses had reached 1.3 million yen. (lol)
For now, I’ve managed to recover 800,000 yen. (sweat)
