Were his early trades smooth sailing? Did he experience significant losses or was he close to a margin call/account blow-up?

Hello! When it comes to the trading journey of Takashi Kogakukawa (commonly known as B.N.F.), many people only see the "mythical status" of him turning ¥16 million into tens of billions of yen. However, his path in trading was far from being "smooth sailing."

On the contrary, he also experienced catastrophic losses severe enough to crush an ordinary person.

Not Smooth Sailing: The "Blood and Tears" Behind the Myth

Think of him as a top-tier gamer who eventually cleared the game but died multiple times and lost countless pieces of gear along the way. That’s the reality of trading—no one profits indefinitely.

Now, let’s dive into his most famous and harrowing loss.

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48 Hours of Terror: The Livedoor Shock

This event is pivotal to understanding the risks in his trading career.

• What Was the Context?
  The incident took place in January 2006. At the time, a high-flying Japanese internet company named Livedoor—a tech darling akin to today’s top disruptors—was exposed for financial fraud. Prosecutors raided its headquarters overnight.

• What Happened?
  The news exploded like a bomb, detonating panic across Japan’s stock market. Investors wildly off-loaded shares, overwhelming the Tokyo Stock Exchange’s trading system—a crash now called the "Livedoor Shock." In just two days, the Nikkei Index plummeted almost 10%.

• B.N.F.’s Situation
  By then, B.N.F. was scaling substantial heights with massive capital. True to his aggressive style, he held enormous long positions (betting stocks would rise).

  The disaster struck without warning.

  • Day 1: Markets plunged, wiping huge chunks off his equity.
  • Day 2: Panic intensified. Prices crashed relentlessly.

• Loss Magnitude: A Near-Wipeout?
  In this storm, B.N.F. suffered an unrealized loss of ~¥700-800 million in just 48 hours.

  To grasp this: at the time’s exchange rate, it equaled tens of millions of USD. Imagine seeing tens of millions vanish from your account overnight—undeniable psychological torture for anyone.

  Did he blow up ?
  Technically, no. His trading capital was colossal (total assets reportedly around ¥8 billion), so while the loss deeply wounded him, it didn’t force liquidation or trigger a margin call.

  Still, it translated to a near-liquidation event or historic drawdown. Such trauma could shatter any trader’s confidence. Most would quit trading forever.

Lessons Learned

This ordeal reveals what it takes to become a trading icon:

1. Unbreakable Psychology: Despite catastrophic losses, he held steady. Without panic, he absorbed the damage and stuck to his strategy.
2. Ruthless Risk Awareness: Survival through this "black swan event" cemented his understanding of market hazards. Though he kept his bold, concentrated style, he recovered fully—then soared to new peaks.
3. Losses Are Inevitable: His story confirms even the "gods" of trading face devastating drawdowns. Success hinges not on perfection, but on:
   • Winning big when you’re right.
   • Surviving when you’re wrong (without getting wiped out).

Ultimately, Takashi Kogakukawa’s ascent was anything but easy. Like every exceptional trader, he clawed through market chaos—with the Livedoor Shock etching a permanent scar and serving as his most brutal, transformative lesson.