Behind the encounter with President Tsuchiya and the backstory of the birth of Stock Account

“Alternative data is effective for reading a company's earnings one to three months ahead.”

AllianceBernstein's

Head of Japanese Equity Management, Atsushi Horikawa, points out.


(From Nihon Keizai Shimbun, September 23, 2019)

https://r.nikkei.com/article/DGXMZO49967470Z10C19A9M11900?s=1）

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Hello, this is Shimoyama.



Today, from 21:30 there will be the U.S. employment data release.

For those who trade FX,

this is a particularly notable event.





Some may be aiming for a sudden drop or rise and trying to make big gains with scalping.

There may be those who plan to earn quickly.

However,



trading based only on such well-known indicators is

becoming outdated.



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Posts on social media, credit card transaction data,

smartphone location data,

and other data sources that differ from official corporate and government data are attracting attention as investment materials.

(From Nihon Keizai Shimbun, September 23, 2019)


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As mentioned in the Nihon Keizai article above,

the use of “alternative data” is growing dramatically.



Professionals trade by using enormous data analyses powered by AI as clues.

They rely on them as a basis for trading.



With overwhelming financial power as a weapon, for individual investorsit's hard to reach such information,

and they conduct trades accordingly.





Looking back, with the advent of the Internet,

individual investors were able to access informationto the extent comparable to professionals,

but as big data analysis using AI becomes more active,

the information gap between professionals and individual investors is widening again.









Those who have information gain profits,

use that profit to buy more information...



On the other hand,those without information have their funds taken away,

miss opportunities to obtain information,

and lose more capital.



Those who have information receive more,

and those without lose funds,

a cruel reality indeed exists.



Considering such situations, it is surely foolishto trade in the same way as professionals.

Trading on the same footing as professionals is essentially a losing game.

Even so,





some may stubbornly think,“I will analyze indicators and data,

sometimes buy, and keep trading!”

But I find it difficult to understand...



Personally,

I wonder why anyone would want to trade

with such hard methods,and I struggle to understand.



World No. 1 investor Warren Buffett also says something like this:







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I would not jump over a two-meter-high bar.



What I look for is a bar about 30 centimeters high that I can easily step over.




Robert L. Block
“Buffett Bible (Tokuma Shoten Publishing)”
P.19

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“Many people think that to succeed in investing you must do many difficult things,”

but as Buffett’s words show above,

the opposite is true.







To succeed in investing,

you should not do difficult things.



You should not trade with the complex, mysterious logic

that professionals practice.





Many people enjoy collecting data and information and analyzing it, but

making profits with that method is extremely difficult.





In fact, the market goes up or down with a 50:50 chance,

so even if you use an off-target method,



you should not end up with massive losses. Yet people lose a large portion of their funds

by relying on data-driven or informational forecasting trades

and being forced to stop out.





By the way, as I mentioned in the last newsletter,

when I started trading,

I did market analysis and searched for rising stocks

and traded, but I ended up losing.





However, later,I stopped all too-difficult analyses and forecasts and

focused on one stock,

holding both long and short positions with margin trading while balancing

and using an original method,

and I started to see profits come surprisingly easily.





Please, you tootry to move away from unnecessarily complex methods

and keep it simple.




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Huh, can you open a securities account?

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Speaking of which, when I say I am making profits from trading,

people say,

“Shimoyama doesn’t make money from trading, he makes money from school fees.”

This criticism exists in the investment industry.



Indeed, there are people who do not actually profit from trading

but make money just from investment school fees.



However,





”I don’t want to be lumped in with them”

is the honest feeling.



In the first place,

as always, the Stock Academy is something



that I did not start by my own will.



Specifically, how did Stock Academy start?



Today I will share that history as well.





One day, a acquaintance said

“There is someone I want you to meet.”

I was brought to Roppongi Hills without being told anything.





There, I encountered President Tsuchiya in an additional video I am sending you,

and at that first meeting, he suddenly said





“You seem to be winning with stocks.”

I replied,



“Yes, I am.” Then

“Can you show proof?” he asked.



“If it’s your securities account, I can show it.” I replied,

“Huh, you can show a securities account?”

he was surprised.



“Why are you so surprised?”

I asked,

“People who say they are winning in investing meet almost every week,



but when asked for proof,

they say, ‘The securities account is a bit…’

or

‘Only for this period it’s okay,’

and most answers are that it’s rare to have a securities account that can be shown,

”



Also,back then I wastelling my acquaintances about the method I used.





Of course, those people were also winning, and

when I showed them proof that my acquaintances were winners,

President Tsuchiya was even more surprised.



“Everyone is winning!

This is amazing!”

he exclaimed.



From my perspective,

I felt, “Well, didn’t I tell you from the start?”

but…



At that moment,

they discussed,

“If we publish this method to the world, people will be glad.”



So we started.



Honestly, I wasn’t enthusiastic about it at all.

However,

they proposed, “Just try it for one year.”

And so we began.



As a result,

about three months after the school opened,

members started sending thanks by email.



Initially,

some of the staff apart from President Tsuchiya

had not even looked at my securities account

and were half doubtful about the method,

but as actual profits from members started coming in,

they began to believe,

“This really can win.”

and even the doubtful staff

began to feel that if you use the method correctly, you can win.





And thus,though it was supposed to be just for a year,

due to ongoing demand,Stock Academy has continued to this day.





I have shared the origin of Stock Academy,

and through this episode I would like you to understand that

Stock Academy was not something I started because I wanted to,







and that we are successfully trading.







It is not necessary to believe it all, but

it would be a shame to remain thinking it is fake, so

I’m sharing this to address counterarguments.



Now, please continue reading until the end today as well.

Thank you very much.






Keizo Shimohara