Active currency trader chats at length with the talked-about person Trader’s Interview｜Guest Kazuo Sato Part II［Traders Securities Minna no FX Igo Yoshio］

Kazuo Sato Profile

A part-time investor who briefly left the FX world after the rapid yen appreciation caused by the Lehman Shock. Currently engages in system trading and long-term investing with high swap points while conducting comparative verifications on his blog.

Twitter：https://twitter.com/tryjpyfx

Kio Iguchi Profile

Iguchi, Yoshio. Trader Securities Market Division, Dealing Section. Certified Technical Analyst. Since 1998, he has been employed by financial institutions, mainly involved in covering deals in the commodities markets such as precious metals and oil products. In 2009, he joined Minna no FX and handles dealing mainly in USD/JPY and major European currencies. He is proficient in forex analysis from a fundamental perspective and is also reputed for short-term forecasts using technicals. Recently, he appeared in Minna no FX’s free online seminars, receiving favorable feedback for his easy-to-understand lectures. Furthermore, on Twitter, a professional dealer shares real-time opinions about the market, so it’s worth checking out.

Twitter：https://twitter.com/yoshi_igu

※This article is a reprint/edit of an article from FX Strategy.com, November 2019 issue. Please note that the market information written in the main text may differ from the current market.

⇒Read the earlier article here

How to Invest More Safely During the Turkish Lira Shock

IguchiIn the FX failure stories, there was a large loss cut in USD/JPY due to the Turkish lira; please tell us more details.

Kazuo SatoI cut 16 million yen in losses only from USD/JPY in Turkish lira pairs.

IguchiThat was during the Turkish lira shock last August. How did you feel at that time?

Kazuo SatoAt that time I was blogging, and when I happened to look at the chart I saw a “terribly sharp drop.” I expected some decline, but I didn’t anticipate it falling so rapidly. Social media outlets were in a frenzy with people crying and wailing, and gathering information only made it drop further, so I cried and cut losses. It was Friday, and the numbers were huge, so the weekend felt like a daze. However, before this 16 million yen loss, I had already experienced a 3 million yen loss during the Lehman Shock, so I had some resilience. Because of that experience, during the Turkish lira shock I felt, “I’ll recover the losses next time,” and I became positive about FX and blogging.

IguchiDid that become a turning point that changed your investment approach?

Kazuo SatoYes, it became a safer investment approach. I initially expected the USD/JPY to approach around 100, but now I’m aiming to have a cushion down to around 95 yen and adding funds accordingly. I can’t afford to lose anymore (laughs).

IguchiAs you continued long-term investing, your investment method changed and you accumulated experience through various losses. Please share the money-management method that became visible through this process.