Rebirth Tokyo 1986

Chapter 4 Stock Trading
Waseda University still has a very famous reputation. Recruit Universe, the company that Masato Takeshita interviewed at in the afternoon, not only gave him the best gift of 50 yen, but also gave him a lot of shopping coupons.

Masato Takeshita counted the notes at home and found that the face value was about 25 yen. It can only be said that these real estate companies are indeed rich and powerful, and each one is more arrogant than the other.

He loved it.

"I have almost enough capital. Tomorrow is Monday. From now on, I will focus on stock trading and making money."

Masato Takeshita has only been in this world for a short time, less than 15 days. But even so, including today, he has earned more than 600 million yen from interviews.

Because he was busy with interviews and making money, he did not do anything in the stock market. He directly went all in with 5x leverage on blue-chip bank stocks such as Dai-ichi Kangyo and Changxin Bank.

This is safe, but with limited capital, you won't be able to make big money.

Masato Takeshita plans to engage in financial trading full-time from Monday to Friday when the stock exchange is open. In the future, he will only conduct interviews and make money on weekends when the market is closed.

However, to be safe, he did not choose the more risky foreign exchange market. Instead, he set his sights on the more stable stock market and the Nikkei 225, or stock index futures trading, which carries a certain degree of risk.

He plans to divide the funds into three parts, two of which will still be used to bet on bank blue-chip stocks with 3x leverage.

If the stock has a 5x leverage, it will take a 20% plunge before the position will be liquidated.

During the bubble era, the Tokyo stock market was in an unprecedented bull market. Not to mention a 20% drop, even a 10% drop was extremely rare.

The remaining one part is used to play the more risky Nikkei 1 index futures.

日经225这东西，每1个波动点10000日元。而更要命的是日经225是每5个点结算一次，也就是说一次盈亏最少都是50000日元。

Sometimes the profit or loss in one minute can be hundreds of thousands of yen.

But even so, for a time traveler like Masato Takeshita, the risk of Nikkei is far lower than that of the foreign exchange market.

The current margin for a Nikkei contract is more than 130 million yen, which means that only if the stock index suddenly plummets by more than 130 points can Masato Takeshita's position be liquidated.

Even if the Nikkei index suddenly plummeted by more than 130 points, he could temporarily sell out his stocks and cover his position. He would only liquidate his position if the Nikkei index fell by more than 400 points.

In his memory of Japan's bubble era, the Nikkei index had never plummeted so sharply in the first half of 1986.

The foreign exchange market is different. If you want to make money, it is common to use a 100-fold leverage, which means that a 1% fluctuation will cause your position to go bankrupt. Even if you sell out your stocks to cover your position, a 3% drop will also wipe out your position.

Half a year has passed since the Plaza Accord. Although the Japanese yen is appreciating overall, it is no longer the time when you could make money by buying more Japanese yen as it was last year.

As the Japanese yen appreciates, institutions often short the yen repeatedly to reshuffle the cards.

Masato Takeshita was not that sensitive to the foreign exchange market and could not keep up with the pace of institutions, so he only considered the foreign exchange market when he had just traveled through time and his mind was not clear.

……

Although the security in Tokyo is relatively good, keeping a large amount of cash at home is always a hidden danger. So the next morning, Masato Takeshita went to Yamaichi Securities early with more than 100 million in cash.

This place is close to the house he rented and it is the company where he opened an account 10 days ago.

"So many people! I didn't expect that so many people would gather in the financial market before the bubble era officially began."

As soon as he entered the business hall, Masato Takeshita was shocked by the densely packed crowds of people inside.

You should know that Yamaichi Securities is one of the four largest securities firms in Japan, and its business hall in Tokyo is very large. However, even so, the business hall is still crowded at this time.

But he soon regained his composure, muttering quietly: "But it's normal. It would be strange if there weren't many people in the financial market, which makes so much money."

After 1986, Japan's financial market became increasingly prosperous.

This is due to both Japan's own factors and the influence of the international situation.

First, Japan was still in its golden age of economic development in the 80s, so most investors could make good returns in the financial market, which led to an influx of more funds.

Secondly, the Bank of Japan began to cut interest rates continuously.

As the central bank cuts interest rates, it becomes less cost-effective to keep money in banks, so people are taking out their money and investing it in financial markets such as insurance, bonds, and stocks.

In addition, the central bank's interest rate cut has also led more companies and individuals to borrow money to invest in stocks.

As for international factors, they are mainly from the United States.

The United States experienced severe inflation in the 80s, and both the physical market and the stock market became sluggish and it was impossible to make money.

There is really no way we can do anything about the real economy; we can never beat Japan.

You should know that the United States has imposed three large-scale trade sanctions on Japan, from the earliest textile industry, to the later steel and automobile industries, and even the recent electronic semiconductor industries.

The results cannot be said to be useful, only that they are getting worse each time.

Every time a trade sanction is imposed, the trade gap between Japan and the United States widens.

It can be said that the United States no longer has any expectations for the results of trade sanctions.

The financial sector is different. This is the unique skill of Wall Street in the United States. No player in the world can beat Wall Street in this regard.

Therefore, the giant capitals on Wall Street continue to lobby the US government to put pressure on Japan in order to open up the Japanese financial market and make more money.

Japan soon could not bear the pressure and launched financial liberalization reforms.

Since then, American capital, eager to make money, has begun to flow into the Japanese financial market.

In addition to domestic and international factors, the news media is also a booster of the expansion of Japan's financial markets.

Newspapers, television, and magazines constantly show that someone made 20 million yuan by investing 1 yuan in stocks, or that someone bought a house in Ginza, Tokyo, with full payment after investing in foreign exchange.

Society is full of talk about making a lot of money by speculating in stocks and foreign exchange.

Faced with this temptation, many ordinary people who had only a vague understanding of stock and foreign exchange trading could not help but take out their savings to enter, and the financial market flourished unprecedentedly.

"First Encouragement, buy 10 lots."

"Nomura Securities, buy 20 lots."

"Toyota, sell 15 lots."

……

A large number of citizens waved the stocks in their hands, buying and selling continuously.

Phone calls, shouts, and keyboard sounds were heard one after another. It was a bit like a vegetable market, or even more chaotic than a vegetable market.

But it's just a small scene right now.
After the Bank of Japan continues to cut interest rates in March and April this year, there will be more hot money in the market, and more novice users with little knowledge will follow suit.

Since then, Japan has entered an era of stock speculation by the entire nation and an era of bubbles.

(End of this chapter)