Starting with a fully invested A-share portfolio to become a capital...

Chapter 20 Bloodstained Bargain

[尊敬的客户，您尾号2389的储蓄卡4月6日8时43分银转证支出华国币21900元（大写：贰万壹仟玖佰元整），可用余额212元。]
Zhang Yang transferred the money from his bank card to his securities account, and China Construction Bank immediately sent a notification SMS to his Nokia mobile phone.

Of the 21900 yuan, 2 yuan was Lai Weijie's management fee, and the remaining 1900 yuan was the revenue from the sale of market research reports.

He originally planned to start live trading when he had more funds, but he didn't expect to find a "golden opportunity" and figured he might as well take advantage of it.

Aside from money for food and daily expenses, Zhang Yang didn't keep a single penny.

In the words of stock market investors...

Always fully invested, always with tears in my eyes!
As Zhang Yang unleashed all his "bullets," the trading seats of speculative funds in the Renmin Road branch of BOC Securities in Sichuan and Chongqing, the Hongling Middle Road branch of China Merchants Securities in Shenzhen, and the Baisha Road branch of Guoxin Securities in Hangzhou had already been activated.

What are speculative trading seats?

Simply put, the brokerage firm directly opens a channel for you to connect to the stock exchange, enabling you to quickly execute trading orders and improve trading efficiency.

For ordinary retail investors to trade stocks, they first need to place an order through a securities account.

note!

It's a placement order in the securities account, not a purchase order!

Since it's a pending order, you need a trader from a securities company to buy stocks on the market for you. This creates an employment relationship between you and the trader, and you need to pay them corresponding compensation, which is the securities trading commission.

A trading seat in a brokerage firm is priced at around 30 yuan per year.

Don't think it's expensive. Having a trading seat not only allows for faster transactions but also saves you a lot of securities trading commissions.

Currently, the average commission rate of various securities companies is between 0.07% and 0.3%. For example, if you buy 10 yuan worth of stocks, the commission will be about 70-300 yuan.

However, if you open a trading seat for speculative capital, according to the well-known speculative capital expert "Master Zhang", you can negotiate with the brokerage to get a commission as low as 0.027%. That means if you trade 10 yuan, you only need to pay 27 yuan in brokerage commission.

If you expand 1000 yuan to 10 million yuan, the money saved will be considerable.

This is why speculative funds often purchase trading seats at brokerage firms.

If you trade millions, and the commission is charged at a rate of 0.1%, which speculative investor can withstand such exorbitant profits?

……

Deep in China.

China Merchants Securities branch on Hongling Middle Road.

Wearing a plaid short-sleeved shirt, carrying a backpack, and sporting black-rimmed glasses, Chen Sanrong, with his dull appearance, walked into the trading hall.

"Mr. Chen, your trading seat is over here." Wang Yougui, the business manager, quickly stepped forward to greet Chen Sanrong.

Although trading seats don't necessarily have to be accessed offline and can be activated online, the business department usually reserves trading seats.

Chen Sanrong liked to trade at the brokerage office. Trading stocks there felt like a teenager with an internet addiction going to an internet cafe.

"Thank you."

Upon arriving at the trading desk, Chen Sanrong thanked them and then took out his laptop from his backpack.

He didn't use the branch office's computer; he used his own.

"I won't bother you any longer. Please give me a call if you need anything."

"Okay, you get busy first."

After exchanging a few polite words, Wang Yougui, dressed in a suit and leather shoes, quickly left.

As soon as he stepped out of the trading area, a newly arrived female fund manager couldn't help but ask, "Manager Wang, who is this guy? He looks like a programmer."

"hehe!"

Wang Yougui sneered and said, "How can a programmer compare to him? This is a multi-million dollar speculative investor who has just made his mark in the market."

He added immediately after speaking, "You may have heard of him; he's known as 'Jumping Brother'."

"Is he the guy who jumped off the building?"

The female fund manager was shocked.

She never imagined that the unassuming, even somewhat honest, middle-aged man she had just seen was actually the "Jumping Brother," famous for violently crashing stock prices and causing them to surge in one go. While she was still in shock, Chen Sanrong logged onto his QQ account and quickly opened the "Changan Automobile Get Rich Group," sending a message to the group.

[Jumping-off-the-building guy]: I'm all ready.

Not a moment.

Other group members' messages appeared.

[Zen City Shadowless Kick]: It's the same here. The market is in a state of panic right now. If this kick goes down, I don't know how many retail investors will die, haha.

[Stock Market Profiteering]: The more they die, the more we earn.

[Ghostly and alluring]: In the opening auction, I'll place a limit-down order with 10,000 lots to stimulate the fragile hearts of retail investors.

[Nanyang War Song]: It's shameless, I like it.

This QQ group has only 7 people, all of whom are speculative investors in the market.

Because Changan Automobile is too large, a single speculative investor simply cannot control the market. In addition, it is uncertain whether there are other major players involved. Therefore, to be on the safe side, these small and medium-sized speculative investors thought of joining forces to share the pie.

Although the Securities Law explicitly prohibits market manipulation, including collusion among speculative funds to pool their resources, the regulatory力度 in 2009 was quite limited, and many speculative funds were left to fend for themselves under the heavy hand of the law.

The manipulation of stock prices by speculative capital was not uncommon, not only in 2009, but even in 2019.

Although they will no longer chat and conspire like this, as long as a familiar branch "ignites" the fire, other speculative funds will immediately swarm in, which is equivalent to "acting according to my signals".

……

9 points.

A-shares have entered the call auction phase.

"Ghostly and alluring" didn't play any tricks; it immediately placed a limit-down order at 6.63 yuan, causing small retail investors on the forum to panic.

[Mr. Wang of AAA Steel]: Did it hit the daily limit down in the opening auction? This is not going to continue to rise, is it? No way, I have to get out of here right now.

[Little Fairy Loves Stocks]: Changan Automobile is trying to kill me! It hit the daily limit down in the opening auction. I have 70 yuan in this stock!

[逍遥游]: Help! I'll never trade stocks again! Can you give me my money back?

Once the 5-minute cancellation period expired, the 7 speculative investors used the simplest and most brutal method to dump 20 lots of sell orders at the daily limit down.

At the same time, they placed buy orders at the same price, which ensured that the market price was kept low while also ensuring that they had enough chips in their hands.

At 9:21, the automatic trading began at a price of 6.63 yuan, and a large number of retail investors were forced to hand over their shares.

[Stock Trading to Support the Family]: Price adjustment.

After the news of "stock trading to support the family" was released, the 20 lots of limit-down orders were basically filled, and a large number of shares flowed back into their hands, but they would not be immediately reflected in their securities accounts.

They then used their financial advantage to buy at 6.93 yuan, a drop of 6%, which prompted many retail investors to quickly seize the opportunity to sell.
-
7% -
8% -
10%
When the price hit the daily limit down again, more and more retail investors surrendered their chips in this psychological game, thinking of doing reverse T to reduce costs.

The continued unfolding of negative news has led other funds to adopt a wait-and-see approach.

Even if the secretary of the board of directors of Changan Automobile sees stock price fluctuations, she has no way to refute the rumors, or rather, there are no rumors for her to refute.

As speculative funds relentlessly slashed at retail investors, Zhang Yang also picked up bloodied shares at the limit-down price of 6.63 yuan.

The market officially opened at 9:30 a.m. Zhang Yang looked at the 3300 shares that had already been traded, which was 33 lots of Changan Automobile stock, and said with a faint smile, "Directly driving it to the daily limit down, this sickle is ruthless and violent enough."

He didn't care which speculative funds were behind it; all he needed to know was that he had bought 3300 shares of Changan Automobile at 6.63 yuan per share.

And on the other side.

Study room on the second floor of the library.

Lai Weijie looked at Changan Automobile, which opened at the daily limit down, and felt a wave of dizziness. He hadn't forgotten that Zhang Yang had been continuously adding to his position at the end of last Friday's trading session, and had gone all in on Changan Automobile.

"10% limit down..."

"10% limit down..."

Lai Weijie muttered to himself, gritting his teeth, "Full position in Changan Automobile hit the daily limit down, Zhang Yang, you're a fucking trading genius!"

(End of this chapter)