Who is Takashi Kotegawa?

Takashi Kotegawa is a Japanese stock trader who started trading from his bedroom. Unlike traditional investors who follow fundamental analysis, he focused on technical analysis and market momentum.

He initially started trading with just $1,000. Over the years, he accumulated $153 million.

He gained worldwide recognition for his ability to capitalize on market fluctuations and turn small trades into massive profits. Unlike many wealthy traders, he lived a very simple life—no expensive cars or watches, just a passion for trading.

The Trade That Changed Everything – JCom Holdings IPO Error

While Kotegawa made money consistently for years, his biggest breakthrough came in 2005 due to a rare stock market error involving JCom Holdings.

What Happened?

A trader at Mizuho Securities mistakenly entered an order to sell 610,000 shares of JCom Holdings at just 1 yen per share, instead of selling just 1 share at 610,000 yen.

This led to a huge opportunity where some traders bought these shares at an extremely low price before the market corrected itself. Kotegawa was one of those who noticed the mistake quickly and bought 7,100 shares. He sold a part of them immediately and held on to the rest, making around $17 million in a single day.

Kotegawa’s Trading Strategy – How He Made Money

• Focus on Bear Markets: Kotegawa preferred trading during bearish market conditions, believing that panic-driven markets create the best opportunities.
• Using the 25-Day Moving Average: He considered a stock a buying opportunity if its price was 20% or more below the 25-day Exponential Moving Average (EMA).
• MACD Indicator for Confirmation: He used the MACD indicator on smaller time frames (like 15 minutes) to identify bullish crossover signals.
• Stock Selection & Risk Management: He picked stocks that had fallen significantly but had strong fundamentals, using stop losses to minimize risk.

Lessons from Takashi Kotegawa’s Success

• One Big Trade Can Change Everything: His biggest profit came from a rare market mistake, showing that preparation is key.
• Technical Analysis Can Work: He relied on market psychology, charts, and indicators instead of fundamental analysis.
• Patience & Consistency Pay Off: It took him 8 years to reach his financial peak, proving that persistence is crucial.
• Keeping a Simple Lifestyle: Despite his wealth, he focused purely on trading and financial growth rather than luxury.

Can You Replicate Kotegawa’s Success?

While replicating his success isn’t easy, traders can learn from him by mastering technical indicators like EMA & MACD, staying patient, and focusing on bear market opportunities.

Final Thoughts

Takashi Kotegawa’s journey from a bedroom trader to a multimillionaire is one of the most fascinating stories in stock market history. His ability to capitalize on market mistakes, use technical analysis, and stay disciplined made him one of the most successful traders of all time.

If you want to succeed in trading, learn from Kotegawa’s strategies, stay patient, and focus on improving your skills every day!