2003: Starting with Foreign Trade

Chapter 439 Operations to Stabilize Morale

In the secondary market, a new speculative trading seat has emerged since mid-July: Qilu Securities Beicang Hengshan Road Securities Business Department.

The first time he appeared on the Dragon and Tiger List was as a seller on a certain stock.

On Thursday, July 19, which is known as the legal day for dumping shares, it sold a total of 17.2 million yuan, ranking second in the selling position, and was one of the main funds dumping shares that day.

Since then, this newly listed seat on the stock exchange's daily trading list has frequently appeared in the public eye, exhibiting exceptionally aggressive trading tactics, including day trading and holding onto a single stock for a week.

The Dragon and Tiger List mechanism can be traced back to the 1990s, but it was only officially released to the public in the form of the Dragon and Tiger List that is now common in the world, starting on July 1st of last year, making it a relatively new thing.

Those who frequently become "leeks" (victims of market manipulation) know that when new rules are introduced, there are always some astute individuals in the market who can fully exploit these rules to manipulate the emotions of "leeks" and extract money from their pockets.

You say you don't believe any news? Sorry, they have plenty of ways to make you believe it.

The Dragon and Tiger List mechanism, which had been in operation for a year, became a major focus for countless people hoping to get rich quickly and achieve financial freedom through short-term trading during the bull market of 2007.

In an era of severe information asymmetry, retail investors know very little about how speculative capital uses the stock exchange's daily trading data to fleece retail investors. As a result, these speculative capital investors have built up their own fan base over time.

This is what Tan Jincheng can't understand the most. Although he is also a leek (a term for someone who is easily exploited), he has never admired any speculative capital. They are all just harvesting leeks, so why distinguish between big and small?
However, human perceptions differ; what some people dislike, others will certainly like.

Since mid-July, Qilu Securities Beicang branch has frequently appeared on the list of top traders, attracting the attention of speculative investors and retail investors. It is unknown who this newly emerged speculative investor is.

Judging from the timing of its first appearance on the list and the amount of money sold, this fund should be a new hot-spot, and the amount is not large, but an expert can clearly see that this is the work of a veteran.

The methods of buying and selling at the limit up price are very aggressive. Although Ningbo has always been known for its real economy, its financial industry is also highly developed. It's just unknown who this newly emerging speculative capital comes from.

Speculative capital has always been a rather mysterious group. They hold large amounts of cash flow, but they act very discreetly. Of course, the insiders at Qilu Securities know which funds it is. If it were ordinary speculative capital, some rumors might have spread.

However, this is the ByteDance account controlled by Tan Jincheng. They are a securities company and have a background, but in Beicang, they are just a small branch and dare not disclose the details of ByteDance's funds account.

Therefore, even those who opened accounts at the branch office did not know who the funds came from, and the inability to find out made it all the more mysterious.

When it first appeared on the list, it had less than 2000 million yuan in funds. However, in late July, as the Shanghai Composite Index stabilized and rebounded, the index climbed back above 4000 points and closed at a historical high of 4471 on the last day of July.

The amount of money this securities brokerage firm has shown on the list of top traders has exceeded 3000 million yuan. Just from the amount of money on the list, it can be seen that this brokerage firm has made considerable profits this month.

Judging from the timing of its appearance on the list of top gainers and losers, this newly emerging position almost caught the rebound of more than 500 points in July. The timing was quite well-planned, perfectly timed after the market correction was completed and the rebound was in full swing.

"Wow, Liu, you really got this task done quickly! Haha, you've got some skills."

"Haha, not bad, not bad, but the boss is still awesome. He got us 4000 million when the market crashed and set an outrageous target of 50%. We were even joking that the boss was planning to fire us all."

"Haha, the boss is really awesome. If anyone tells me that the boss doesn't understand stocks, I'll get angry with them. Look at this rebound from 3600 points to 4400 points, the boss really hit the jackpot."

"Awesome, awesome, I'm impressed. If the previous bull market was due to those who bought early and the bosses getting lucky, then this time it breaks the previous theory."

No wonder everyone is happy, because in addition to Xiao Liu doing well, the stocks they bought also yielded considerable returns in this round of rebound, with even the worst-performing stocks seeing gains of over 10%.

The market has risen more than 22% from its low point since the correction, and the 4000 million yuan that entered the market was almost perfectly timed. In less than a month, the goal set by Tan Jincheng for them has been achieved!

Of course, the biggest credit goes to the short-term account controlled by Xiao Liu, but apart from Xiao Liu's account, the returns of the other 3000 million yuan in funds are also very good, with an average increase exceeding the index increase.

50% is a bit of an exaggeration, but with such a good start, it's not unattainable. Besides, Cheng Linfeng's strategy enabled these traders to achieve their minimum target ahead of schedule.

"Alright, don't let your guard down. You can get a share of the money you earn next month. How much you get depends on your abilities. The boss has given everyone room to grow and funds. Xiao Liu has already proven himself, and you can't fall behind."

"clear."

The trading room was filled with excitement. Today was Tuesday, July 31st, the last trading day of July. This 40 million yuan share was different from the previous ones. Before, they only earned a share of the profits from day trading and received a basic salary. They earned a lot, but no one is ever truly satisfied.

In this booming bull market, who wouldn't want to earn more?

The 4000 million yuan that Tan Jincheng took out at this time, besides being used to make money for himself, also unintentionally played a role in stabilizing morale within the army.

In the later stages of a bull market, people's emotions are at their most volatile, whether they are retail investors or legitimate professionals. Once this gets going, very few people can remain rational.

The fact that the traders at ByteDance's trading platform were able to maintain normal operations during this bull market was simply because Cheng Linfeng turned a blind eye to their private manipulation of their own accounts.

However, this situation certainly cannot continue for long. No one can do personal things while at work. As the company's operations grow, rules and regulations will definitely be needed.

However, Cheng Linfeng couldn't think of a good solution for the time being. People in the financial industry have an extremely high pursuit of money, and you can't keep a trader who really thinks he has the ability.

They either went out on their own or were poached by a private client with a large sum of money; it's simply impossible for you to stop them from making money.

Fortunately, Tan Jincheng managed to raise 4000 million yuan. Although the benchmark for this 4000 million yuan was set very high, now that the project has been completed, Cheng Linfeng is no longer worried.

This 4000 million yuan is similar to a tycoon handing over funds to a trader, with the portion beyond the guaranteed return being split proportionally. The higher the return, the higher the share. For example, if Xiao Liu is allocated 1000 million yuan, he only needs to achieve a profit of 500 million yuan to participate in the profit sharing of the rest.

This is why Xiao Liu works so hard; the account he manages has already doubled in value. After deducting the guaranteed profit of 500 million yuan, the extra amount is his share.

His return rate has reached the highest commission standard of 30%, which means that if he earns 1000 million yuan, he can get 300 million yuan in commission.

This model is similar to a big boss paying a trader with no capital to manage the market. Losses are no problem, and profits are shared. There is not much risk for the trader, and in a bull market, it is the best way for traders who want to make a name for themselves to earn their first pot of gold.

If this model is signed privately, it certainly isn't very formal, but from the perspective of the company's reward mechanism, there's nothing wrong with it. As for performance-based commissions, top salespeople get more.

The boss's move subtly stabilized the morale of the company's traders. Instructing Xiao Liu to engage in short-term trading was not only for performance considerations, but also, as Cheng Linfeng wanted to motivate the other traders in this way.

The boss said that this was a short-term investment, and he would withdraw the funds if the target return was met. He also said that he would not engage in this kind of operation again. The highest profit share he could get was 30%, which could be considered a benefit for the employees.

After all, the traders who have stayed and worked diligently until now have already passed the test. Regardless of their future plans, Tan Jincheng is giving them a chance to make their first fortune at this time, which can be considered as forming a good relationship.

Who knows, maybe one day the group's listed companies will also need market capitalization management? That's when the goodwill we've built will come in handy.

Tan Jincheng is indifferent to employee departures. Whether they are capable or not, he believes in amicable parting. As long as you don't disgust the company or do anything despicable, Tan Jincheng always adheres to the principle of amicable separation.

The turnover rate at ByteDance's advertising platform is actually quite high. During this year's bull market, many traders wanted to go out and work independently or for private clients to earn more money. In fact, quite a few traders have already left.

Those who can stay here, besides their abilities, actually have personalities that are close to the company's style, and Tan Jincheng doesn't mind giving them an extra income.

With Xiao Liu setting an example, the other traders became even more enthusiastic. Who would turn down money? As for whether they switched to a short-term trading style, Cheng Linfeng didn't care.

Not everyone is suited for short-term trading. The more they trade, the more mistakes they make. When they lose money, they naturally know to go back to what they are good at.

The trading room of ByteDance was bustling with activity, while Boss Tan had already left Yiwu and arrived in the Ham City area. After leaving Yiwu, he would definitely go to Yongkang.

After a brief stop in Yongkang, Tan Jincheng went to Huzhou, and then to Hangzhou.

P.S.: The secondary market is not the main theme of this book, but it will definitely be mentioned in some way, though not in large sections. Don't worry, this part is free.

There should be another chapter tonight, barring any unforeseen circumstances.

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(End of this chapter)