How BNF Made $17 Million in 10 Minutes: Lessons from a Top Japanese Trader
Meet BNF — a Japanese trader who turned $15,000 into over $150 million in just eight years. He gained fame for making $17 million in under 10 minutes due to a mispricing error. Many thought he got lucky, but his consistent success tells a different story. Let’s break down his trading approach and the mindset that helped him achieve such remarkable results.
Who is BNF?
BNF is a Japanese trader who, much like the famous CIS, makes significant profits during market volatility and bear markets. He took advantage of a trader error at Mizuho Securities, where 610,000 shares were mistakenly sold at 1 yen each instead of 610,000 yen per share. BNF bought as many shares as he could and ended up with a $17 million profit. This trade is only a small part of his overall success, which totals over $150 million.
BNF’s Trading Strategy
Focus on Oversold Stocks
BNF’s strategy is simple but effective. He buys stocks that have fallen out of favor with investors. Instead of relying on company fundamentals, he uses technical analysis and charts to decide when to buy.
Swing Trading
He’s a swing trader, holding stocks for two to six days, sometimes longer based on chart signals. His goal is to profit from upward price trends after buying oversold stocks.
Bear Markets
BNF finds bear markets easier to trade due to higher volatility. Bear market rallies — short-term price surges — offer plenty of opportunities. He takes advantage of these rallies fueled by short covering and fear of missing out on a recovery.
Lessons from BNF’s Mindset
Focus and Concentration
BNF maintains sharp focus when trading. He monitors 30 to 70 positions and scans 600 to 700 stocks for opportunities. This high level of concentration helps him understand market sentiment and make informed trading decisions.
View Trading as a Game
To BNF, trading is like a video game. It’s a zero-sum game with winners and losers. By treating trades as challenges to be executed perfectly, he doesn’t get bogged down by financial gains or losses. This mindset keeps him focused on making the best trades.
Process Over Results
BNF emphasizes the trading process over the results. He once said that caring too much about money hampers trading success. For him, a loss can feel better than a win if the losing trade was strategically sound. This focus on the process ensures he sticks to his proven trading strategy, exiting trades with small losses if needed.
Live Modestly
Despite his massive net worth, BNF leads a modest lifestyle. He doesn’t splurge on luxury items and owns just a condo in Tokyo and an office building for investment. This modesty reduces pressure to make risky trades to support an expensive lifestyle, helping him make better trading decisions.
Conclusion
Imagine you’ve reached all your financial goals and have a billion dollars. How would this impact your trading? You’d likely approach trading very differently, focusing more on the process than the outcome. This is precisely what BNF does, and it’s part of why he’s so successful.
