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

Chapter 22 Earning 4000 Yuan a Day

When Zhang Yang and Lai Weijie signed the bet, the market sentiment for Changan Automobile reversed dramatically, with a large number of self-media outlets beginning to support the "2009 Changan Automobile First Quarter Report".

One of the self-media outlets, known as "Brother Facaiquan," even published a lengthy article of over a thousand words, explaining in detail why Changan Automobile experienced a significant decline in net profit.

1. Upgrading production capacity.

2. Integrate the supply chain.

In layman's terms, capacity upgrading means purchasing production equipment and expanding production plants.

Since it involves expansion, investing a large amount of money is very reasonable, after all, the machinery and equipment for automobile production are extremely expensive.

As for integrating the supply chain, Changan Automobile suspended trading for five months for this purpose.

If Changan Automobile were simply replacing parts with inferior ones in pursuit of higher profits, there would be no need for the public to know about it.

Publicly declaring the intention to integrate the supply chain is undoubtedly a sign of further quality improvement.

Whether it's repurchasing B shares, upgrading production capacity, or integrating the supply chain, all these actions reveal that Changan Automobile's decision-makers are optimistic about the future.

As a flood of "positive" articles swept across the internet, some shareholders of Changan Automobile who had already sold at a loss were left heartbroken.

[A Big Matchstick]: I sold at a 10% loss and ran, and you're telling me the Q1 report is actually good???
[Crazy Egg]: You beasts! The main force is a beast! It pulled up 10 points in less than 20 seconds. I was even thinking of doing a counter-T.

[Stock Trading Wolong]: I just bought 20 yuan worth of stocks underwater, and now I have a profit of 2 yuan. I can only say that 99% of retail investors are idiots. They can't even understand financial statements and yet they try to trade stocks. Do they really think the stock market is a charity?

[Wind Howls]: Damn you, main force! I curse you to death!!!
The large amount of shares forced out has already made speculative funds very wealthy, and speculative funds such as Chen Sanrong have begun to continuously drive up the price.

……

And on the other side.

First floor of the Shanghai University of Finance and Economics Library.

Zhang Yang found Li Xiaochun, a junior student who worked part-time at the library. Since the two had met before, he was able to borrow A4 paper and ink pads without any problems.

He then wrote two wager agreements by hand, signed his name, and pressed his fingerprint on them.

Lai Weijie did not hesitate and signed the betting agreement, pressing his fingerprint on it as well.

To prevent them from reneging on the bet, the two held up the bet agreement and recorded a video of each other as proof that the bet was valid.

"Alright, now that the bet is signed, I hope you'll calm down and stop coming to see me all the time. Let's give each other some space, okay?" Zhang Yang said to Lai Weijie.

After confirming the contents of the bet were correct, Lai Weijie stopped worrying and replied, "Okay, I'll wait for the final result of the match."

Although he doesn't know where Zhang Yang's confidence comes from, how could he possibly still be in the top ten in his field after his entire portfolio plummeted by 10%?

He no longer aspires to intern at Huaxin Securities; he just wants Zhang Yang to return all his money.

"If there's nothing else, I'll head back to the financial analysis room. Oh, by the way, if you have time, could you please return the inkpad for me? Thanks." Zhang Yang packed his things and went straight back to the financial analysis room on the sixth floor.

After watching Zhang Yang leave, Lai Weijie first returned the inkpad, then went back to the second-floor study room, reopened his laptop, and checked the market trends of Changan Automobile.

"no!"

He was suddenly startled!
After rubbing his eyes hard, Lai Weijie looked at the computer screen again.

Changan Automobile rose 7.64%.

7.64%???

Lai Weijie couldn't hold it in any longer; a sudden difficulty breathing caused him to cough repeatedly.

17 points!
He never imagined that Changan Automobile's price fluctuation would reach as high as 17%, and that it would even make it onto the list of top traders in the market.

Do not!
It's no longer 17%, but 18%, and Changan Automobile is still rising; it's still climbing rapidly.

At 10:12 AM, Changan Automobile appeared on the daily limit-up list, with 100 million lots of sell orders. Many retail investors sold at a loss, while others chose to chase the price at the limit-up price. Lai Weijie looked at Changan Automobile's limit-up and subconsciously wanted to question Zhang Yang.

But halfway there, he shook his head and admitted defeat, saying, "Damn it, I shouldn't have gambled with that Zhang Yang guy."

He regretted it.

But is it useful to regret it now?

The bet has been made. If Zhang Yang really gets him into the top ten of the investment major, he will have to pay Zhang Yang an additional 2 yuan, which is a total of 6 yuan in operation fees.

After a three-minute silence, Lai Weijie said with relief, "No wonder he's a top student. Damn it, I'll just consider the 2 as tuition."

Although he doesn't have that much money on hand, his family does. As long as he can get into Huaxin Securities, spending 6 yuan is actually not a loss.

After all, only those who have given gifts know that the biggest headache is not the value of the gift, but having a valuable gift but no way to give it away.

……

Sixth floor, financial analysis room.

Zhang Yang returned to his study area and entered his laptop's lock screen password.

The moment he turned on his computer, he saw that Changan Automobile had hit its daily limit, with a total return of 22.22% for the single stock, yielding a profit of 4861.5 yuan.

This is because Zhang Yang bought 3300 shares at the limit-down price of 6.63, and now that the price has hit the limit-up price, the amplitude is 22.22%, and the total return is naturally 22.22%.

Apart from Changan Automobile, Zhang Yang's real-money portfolio also showed positive returns in Huaguo Bank, Baosteel, and JAC Motors, although they were small in size and only earned 96 yuan.

In other words, as of 10:14 AM, his live trading account had a total daily unrealized profit of 4957.5 yuan.

Zhang Yang, contrary to his usual behavior, ignored Lai Weijie's demo account.

Once he confirmed that speculative funds were in control, he knew that the market was likely to rise in the next two days, so there was no need to rush into any action.

The fundamental reason why retail investors lose money, besides their tendency to buy at the bottom, is that they can't hold onto stocks, meaning they can't capitalize on upward trends.

Even though they've broken above the 10-day moving average, formed a golden cross, and seen increased trading volume, they still choose to reduce their positions, fearing they'll get trapped again.

Buying at the bottom halfway up the mountain and then profiting from the bottom is a true reflection of 90% of retail investors' experiences.

As a professional investment manager, Zhang Yang would naturally not make such a basic mistake.

Instead of selling any shares, he opened the "Stock Market Discussion Forum" on Baidu Tieba and posted his profits from Changan Automobile, the time he bought the shares, and his bottom-fishing experience.

Not a moment.

There were numerous replies from stock market investors.

[Takoyaki]: A 22.22% increase in a single day? I admire the expert, please tell me if it's still a good time to buy Changan Automobile.

[Big Silly Cow]: Damn, bro, you're awesome! You bought at the bottom perfectly, and your analysis is so good. Anyone who can read financial statements is awesome!
[一字干干干]: I also think there's something fishy about Changan Automobile's limit down, but I didn't dare to buy the dip. The poster is really bold and skilled.

[Lightning Speed]: Boss, please carry me!
After Zhang Yang posted the message, he immediately received more than a dozen private messages from users asking if he had any stock trading tips.

However, he ignored it and simply closed Baidu Tieba.

He shared his account profits not simply to show off, but to gain the trust of individual users on the forum.

What happens after you gain their trust?
Very simple.

Sell ​​market research reports to them to maximize your own profits!

As for why we're not replying to them now, it's actually quite simple. Trust is built step by step. If we rush to sell them research reports now, it might make them think that Zhang Yang is a fraudster.

So he wasn't in a hurry; he fired a few more shots and let the bullets fly slowly for a while.

(End of this chapter)