Just came across this fascinating story about Japan's two legendary traders that really got me thinking about what separates winners from the rest. You've probably heard whispers about BNF, the guy they call the God of Trading, and CIS, known as the strongest individual investor in Japan. What struck me most is how these two built their empires from nothing and became close friends through shared experiences in the market.

Both started trading during university, grinding from small capital to managing over a billion in funds. They both made their mark during that wild J-COM incident—CIS pulled off a stunning 600 million yen profit in a single day, but BNF? That guy made 2 billion yen in just 10 minutes. To put that in perspective, that's roughly 150 million yuan at the time. In a market culture that typically keeps things quiet, these two actually shared their playbooks, which is rare and valuable.

What really interests me is how BNF's approach evolved. Early on, he built his account from small to 100 million yen primarily through contrarian investing during the brutal 2000-2003 bear market. When everyone else was panicking and taking losses, he saw opportunity. He'd identify heavily undervalued stocks by looking at deviation from the 25-day moving average. If a stock trading at 80 yen had a 100 yen average, that's a negative 20% deviation—exactly the kind of signal that suggested the price was severely beaten down and ready to bounce. He'd buy these dips with conviction, waiting for the rebound.

But here's where it gets interesting. When the market shifted in 2003 and entered an upward trend, this BNF trader completely adapted his strategy. He switched to trend-following, riding the momentum upward. His assets exploded from 100 million to 8 billion yen because he wasn't rigid about his methods. He'd hold 20-50 different stocks simultaneously, trading over two-day cycles. Buy during the day, decide by next morning whether to take profits or cut losses, then move to fresh targets. The diversification across multiple positions meant he wasn't getting wiped out by any single stock.

CIS approached it differently but complementarily. His core insight was simple but powerful: stocks that have been rising tend to keep rising, and falling stocks tend to keep falling. Most people unconsciously treat the market like a 50-50 coin flip, fearing that a stock rising means it's about to drop. But that's not how markets work. Strong stocks attract more buyers, making them stronger. You have to respect that momentum instead of fighting it.

What I found particularly useful is CIS's warning against averaging down on losing positions. The logic seems tempting—add to your losing bet hoping to recover—but it's actually doubling down on failure. Instead, he advocates for quick stop losses and accepting that losses are part of the game. The goal isn't a high win rate; it's overall account profitability. You can lose on most trades and still be profitable if you keep losses small and let winners run.

Both traders emphasized something crucial: don't get attached to old trading rules. The market is dynamic. Once a strategy becomes popular, it stops working. Real opportunities emerge during crises and panic when most people freeze. That's when calm, decisive traders make their biggest gains.

Looking at their journeys, it's clear that successful trading isn't about having one perfect system—it's about adapting to market conditions, managing risk ruthlessly, and staying disciplined through cycles. The market will always have volatility and opportunities for those patient enough to wait and sharp enough to act.

Of course, this is just education on market principles. Trading carries real risk, so always do your own research and trade carefully. Interested in exploring more about market strategies and how different assets move? Gate has solid tools for tracking these kinds of patterns if you want to dive deeper.