A current FX trader discusses with the trending figure in an extended conversation: Trader’s Interview | Guest: Yasushi Yamanaka, Part 1 [Traders Securities Minna no FX Iguchi Yoshio]

Yasushi Yanaka Profile

Joined Bank of America in 1982, became Vice President in 1989, Proprietary Manager in 1993. Joined Nikko Securities in 1997, and in 1999 became Deputy Head of the Foreign Exchange Funding Department at Nikko City Trust Bank. In 2002, established Ascendant Co., Ltd. and became a director.

Official site：Ascendant/Yasushi Yanaka's Foreign Exchange Information Delivery Site

Twitter：https://twitter.com/yasujiy

Kio Iguchi Profile

Iguchi, Yoshio. Trader Securities Market Division, dealing section. Certified Technical Analyst. Has been in the financial industry since 1998, mainly involved in cover-ding trading operations centered on commodity markets such as precious metals and petroleum products. Since 2009 has been with Minnano FX, conducting dealing operations focusing on USD/JPY and major European currencies. Proficient in forex analysis from fundamental perspectives, and also well-regarded for short-term forecasts using technical analysis. Recently appeared in Minnano FX’s free online seminars, with easy-to-understand lectures gaining favorable reviews. Furthermore, on Twitter, professional dealers share real-time opinions about the market, so it’s a must-check.

Twitter：https://twitter.com/yoshi_igu

※ This article is a reprint/edit of an article from FX攻略.com June 2020 issue. Please note that the market information stated in the text may differ from the current market.

A Career as a Learning-Heavy Professional Trader

IguchiMr. Yanaka, who is active in the financial world, please tell us about your background first.

YanakaI started on the financial path by joining Bank of America (hereafter BofA). During job hunting, I found dealers interesting, and when I asked, “Can anyone become a dealer if they want to?” BofA told me, “If you want it, we’ll let you do it,” so I decided to join BofA.

At that time, BofA was putting effort into training traders, and I also underwent dealer training. I was assisting with USD/JPY, but when I went to New York for training a USD/JPY dealer suddenly went into hospital, so I had to stand in. A few days later, the Plaza Accord occurred, and from year-end the yen strengthened from around 240 to 200, a roughly 40 yen swing. There was a period when I debated whether to continue as a dealer, but I think the Plaza Accord was a major event that kept me in the world of forex to this day.

IguchiWhat year was the Plaza Accord when it occurred in your career?

YanakaIt was in my third year. Big events offer much to learn, but I also learned that if you do well, you might mistake luck for ability and run into trouble later. During the Plaza Accord, the yen was continuing to appreciate, so simply selling USD/JPY would have made money. Then I handled the German mark, moving huge sums. I freely moved about 20% of Tokyo foreign exchange market turnover by myself. Before I knew it, all the banks around me had become central banks, and everyone traded against me with the opposite positions saying, “Crush Yanaka in Tokyo.” That’s when I first learned to trade more conservatively. At that time I held positions worth hundreds of millions of dollars without worry, but reducing the exposure to tens of millions of dollars did not significantly affect profitability, and smaller amounts allowed more maneuverability with less volatility, so I reduced positions. It was good to experience that kind of misconception early on.

Then, toward the second half of 1996 just before the Asian currency crisis, there began to be huge losses at various Asian branches. At that time I was in a position called Proprietary, free to trade as I wished, but the movement to eliminate proprietary trading started, so I decided to quit and joined Nikko Securities in 1997. I was happy to be able to sleep again at night (laugh).

IguchiForeign-invested companies are said to be intense in work schedules, after all.