[Tsubasa Aizawa’s Way] In one night I burned through 15 million and realized the iron rule for surviving in investing: go big on capital, keep the lot sizes small

When you’re investing or trading, doesn’t everyone think this at least once?

“It’s no use earning bit by bit. I want to earn a huge amount all at once.”

In fact, even Tsubasa Yozawa (Yozawa Tsubasa) is said to have thought the same in the early days. However, that mindset of aiming for a “one-shot kill” is the biggest reason you get expelled from the market.

This time, drawing from the vivid account of Yozawa Tsubasa actually losing a large sum overnight, I will explain the strongest capital management principle for surviving in investing: “put in big funds, trade with small lots.”

? A loss of 15 million yen overnight. The fear of a market turning into a casino

“At first, I put in around 30 million yen, and I didn’t think it would help to earn bit by bit.”

Yozawa reflects on his state of mind at that time. He traded on holidays and ended up with a huge mistake that made him nervous.

The scariest moment was when he had invested around half a million dollars (in the rate at the time several tens of millions of yen),and he lost as much as 15 million yen overnight in a single night.

“If this continues, all the funds will melt away.”

With that intense sense of crisis, he recalled past “casino failures.” He got heated in the casino, adding “$10,000, another $10,000…” without a plan, sinking into a quagmire. He realized that although he was facing the market, it had secretly turned into gambling.

? $350,000 withdrawal and the restoration of calm

Realizing that his trading had become gambling, Yozawa took a remarkably calm and rational action.

“To regain composure, I immediately cashed out $350,000.”.

To cool his hot head, he forcibly pulled funds from his account and restarted trading with the few remaining funds (about $10,000), lowering the lot size to the extreme.

What was the result?

Although it took time, he steadily accumulated profits and managed to bring his funds back up to $150,000.

“Even if you trade little, it takes a lot of time, but you can recover—that gave me confidence.”

This experience became the foundation of his unwavering investment approach today.

? The optimal investment rule: “Funds XXX, Lot XXX”

The conclusion Yozawa Tsubasa arrived at. That is the main theme of this discussion.