As Kurumi dipped her toes into her first forex trade after her father discouraged her, she got excited by the initial increases. However, it took a turn for the worse as her losses piles up. Is Kurumi doomed?
If you recall from last time, she got excited over her initial trade for the USD/Yen trade pair going up. She thought she was making a lot of money, more than her part-time job at a convince store. However, like when it went up, it went down before she realized it. Kurumi panics as she didn’t close her position while she was up. She got greedy, but when her father came back, she closed out and pretended like nothing happened. When she turned on the computer, the screen went back up as she closed out her position. Thankfully, she didn’t get caught.
Since that time, she gained a profit of 500,000 yen, thus giving her about 800,000 yen in her balance. You would think she would continue to play it safe even if the USD/Yen pair gets boring. Well, she made friends that gave some terrible financial advice. She became friends with Kogane Mochiko, who started trading stocks and now has gotten into foreign exchange trading to earn more money.
Of course, she steers Kurumi to leverage trading, which is borrowing money to invest hoping to gain a profit from a trade without putting up the money to do it. This is where people, especially young adults, got into trouble, using leverage hoping to make big money from a trade. Doing a trade on leverage means you borrow money hoping to magnify the gains as opposed to buying and selling the stock outright. However, it’s risky as if it drops and you realize the loss, it magnifies it. Thus, you lose even more money. Since most people are inexperienced, they end up racking up a lot of debt if a position drops and they get a margin call.
I kind of think of Mochiko like the infamous subreddit “WallStreetBets.” She suggests Kurumi put her position in AUD/JPY as it’s heading up and do it on margin. If that pair sound familiar, it’s the one that Kurumi’s mother traded often that eventually doomed her. She even offered a 3-million-dollar loan, but of course Kurumi doesn’t want to do that as she will end up owing her money. Of course, she bought 50 sets in AUD/JPY, thinking she could get rich quick. Mochiko knew that it’s probably a bad idea to get into that pair, but wanted to use Kurumi as a guinea pig.
At first, Kurumi executed multiple trades of AUD/JPY several times a day. She checked during break at work, and she seemed happy that she gained 154500 yen in profit. However, when she got home, she was really in the red. Kurumi could have just cut her losses and tried something else. Sadly, she has become just as bad as her mother, as she is gambling. Even Mochiko encourages her after seeing Kurumi have a frustrated look on her face. She knew full well Kurumi didn’t know what she was doing and was losing a lot of money. She then wonders if Kurumi gets hit by a forced liquidation. That means she will not only lose her money but also become barred from trading. She gets frustrated until she discovers her father’s 3.2-million-yen savings.
I have a terrible feeling about this. It seems as if Kurumi has learned nothing and fallen in the same trap as her mother to get rich quick, which led her to lose a lot of money and caused her death. What if her father finds out she uses that money?
Either way, she did it to save herself, hoping things would turn around. As predicted in the first episode, I have a feeling that it will not work out, and she will lose more than she bargained for, and her father will find out. Kurumi is really deep into the “diamond hands” thing, hoping that her position in AUD/JPY will go back up and go to the moon. However, it doesn’t look like it. Whatever happens next that leads to that moment, she might have to give up forex trading for good. What Kurumi is doing is obviously what you should not do if you want to invest money to build wealth. She is basically gambling and playing Russian roulette with her money. The question is: How will she deal with the consequences of it all?
(Also known as FX Fighter Kurumi-chan)
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