Japanese retiree loses $4,000 on semiconductor stocks, calls it 'tuition fee'

A 68-year-old Japanese retiree learned a costly lesson about the risks of individual stock investing after losing a significant sum chasing the semiconductor market boom.

Faced with a dwindling retirement fund, the man, identified as Shoichi Fujimoto (a pseudonym), began investing in global stock index funds through Japan's "new NISA" (Nippon Individual Savings Account) system. However, after six months, he felt the returns were too slow, earning less than 20,000 yen (about $130 USD). This dissatisfaction grew when he heard about the rapid surge in semiconductor stocks.

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The returns were less than 20,000 yen in half a year. Although he didn't lose money, Mr. Fujimoto felt that at this rate, his retirement funds would not increase much.

Driven by a desire for quicker gains, Fujimoto invested approximately 2 million yen (about $13,000 USD) into semiconductor stocks. His life quickly became consumed by monitoring the market. From the 9 a.m. opening bell to the 3:30 p.m. closing, he constantly checked stock prices on his phone. Even after trading hours, anxiety persisted, preventing him from concentrating on anything else.

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From the day he bought the stock, his life completely changed. Every morning after the stock market opened at 9 a.m., he kept checking the stock price through the app until trading ended at 3:30 p.m.

The constant market watching took a severe toll on his physical and mental health. He experienced eye strain, headaches, hand tremors, and a loss of appetite. As the stock prices continued to fall after his investment, his paper losses amounted to about 30%, shrinking his investment to around 1.4 million yen (about $9,200 USD).

Ultimately, Fujimoto decided to "stop loss and sell," accepting a loss of 600,000 yen (about $4,000 USD). He described the loss as a "good tuition fee," prioritizing his mental well-being and freedom from the constant stress of market fluctuations over the financial loss. He now plans to focus solely on fixed, regular investments in global stock index funds and is considering part-time work to supplement his income.

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Losses of 600,000 yen are not small, of course I am troubled. But more than that money, I want to quickly get out of the state of being led by stock prices and controlled by my phone life. This is a good tuition fee.