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

Chapter 47 Funds Exceed 19

Time flies, and it's Grain Rain on April 20th.

Grain Rain is the sixth of the twenty-four solar terms and the last solar term of spring, named after the phrase "rain nourishes all grains".

At this time, Shanghai was experiencing torrential rain, accompanied by bursts of spring thunder.

Shanghai University of Finance and Economics.

Wudong Road Campus.

With only three trading days left until the end of the "Huaxin Simulated Trading Competition," the performance of investment majors graduating students in the simulated trading sessions is gradually widening.

He Jing, who ranked first, has already achieved a return of 58.4%, just one step away from a 60% return.

The second-ranked student is Zheng Shaohui. He performed steadily for the first 25 trading days, maintaining a ranking of around 30th.

But as the end of the competition approached, he, like most students, went to the stock exchange's daily trading data to chase after hot stocks.

Ultimately, with Kailuo Technology (which has since been delisted), a 15% increase was achieved, breaking through the 50% return mark.

The third place goes to Qi Junze, who also achieved a 14% increase by chasing the top in the rankings, thus joining the ranks of those with a 50% return.

Apart from these two students who squeezed into the top ten by chasing high prices, all the other students who participated in market hotspots suffered extremely serious losses.

One of the girls, Liang Qi, suffered a loss of 60%, ranking last, and was even criticized by Professor Wang Xingbang as a typical case of investment failure.

……

13:42 p.m.

Library, financial analysis room.

Wearing a gray knitted tank top, black hot pants, and black boots, He Jing, exuding a mature and sophisticated vibe, approached Zhang Yang with two iced Americanos in her hands and said, "Here you go, your half-sweet iced Americano."

"Thank you."

Zhang Yang thanked him and continued watching the market.

In the five trading days last week, the four major banks he had previously acquired, as well as ST Zhongfangji, all saw significant gains.

I bought ST Zhongfangji on April 10th at its daily limit of 11.28 yuan. The returns over five days were...

April 13: 1.77%, stock price 11.48.

April 14: 4.97%, stock price 12.06.

April 15th: -1.33%, stock price 11.89.

April 16: 1.17%, stock price 12.03.

April 17: 0.93%, stock price 12.14.

The price rose from 11.28 yuan to 12.14 yuan, and the account showed an increase of 7.62%.

It's worth mentioning that on April 20th, which is today, ST Zhongfangji saw 60,000 lots of buy orders placed by major investors in the morning session, pushing the price up by 5% to the daily limit of 12.75 yuan.

If you buy in with a cost of 2 yuan and the stock price rises by 13.03% over six days, then the profit from ST Zhongfangji would be 2606 yuan.

Zhang Yang bought shares of the four major banks for 12 yuan, but only held them for two trading days. On the third trading day, the market opened lower, and he immediately closed his position and left the market without hesitation. The cumulative increase was 3.7%, and the total profit was 4440 yuan.

After selling the four major banks, Zhang Yang used 12.4 yuan, plus 4 yuan transferred by Tao Yuang, for a total of 16.4 yuan, to trade stocks such as Baosteel, Ping An Insurance, and Shaanxi Guotou A. He achieved a 2.6% return in three trading days, and the funds in his securities account increased at a visible rate.

As for He Jing, since she needed to prepare market research reports for Zhang Yang, she also came to the financial analysis room of the library to trade stocks, and could also consult Zhang Yang when necessary.

Over time, a unique understanding developed between the two.

At first, He Jing was surprised to find that Zhang Yang was playing real money trading, but gradually she discovered that Zhang Yang not only played real money trading, but also played demo accounts with Lai Weijie and Xu Zhiruo.

She didn't ask further questions, but instead marveled at the terrifying power of multitasking.

"Rumble--"

Outside, there was lightning and thunder, and the rain was pouring down.

Even if many students have umbrellas, they dare not leave the library rashly. They need to find a place to take shelter when it rains, which is common sense that even elementary school students know.

As 3 p.m. arrived, Zhang Yang looked at the closed A-share market and couldn't help but let out a long sigh of relief, his tense nerves finally relaxing.

Watching the market is really exhausting, and with three securities accounts to manage, he was feeling quite tired.

Fortunately, after selling Huaxin Securities, which he bought at a low price yesterday, and making a profit of more than 2,000 yuan, Zhang Yang's real trading account has reached 190,900 yuan, of which 27,600 yuan was earned through stock market trading.

At this point, his actual holdings are as follows:

ST Zhongfangji: 22606 yuan.

Huaguo Shenhua: 40000 yuan.

Yangtze Power: 40000 yuan.

One-day reverse repurchase agreement for treasury bonds: 8.8 yuan.

He Jing glanced at Zhang Yang's account holdings and asked with some surprise, "You've switched all your holdings to defensive sectors?"

"The market has seen declining trading volume for three consecutive days. The banking sector, after being hyped by the market, is also experiencing declining trading volume. To be on the safe side, I'll buy some coal and power stocks to reduce my position," Zhang Yang explained his strategy.

The so-called defensive sector refers to sectors where the market demand for individual stocks is highly stable and not significantly affected by economic cycles.

The most frequently mentioned sectors are banking, power, and coal. If the market is to decline, the fundamental profitability of these sectors can provide good resilience against market downturns.

For example, in the coal sector, as of April 20, 2009, according to the first quarter's publicly disclosed national energy information, thermal power generation accounted for 81.81% of total power generation, with an installed capacity of 6.51 million kilowatts, accounting for 74.49% of the total installed capacity. It can almost be said that China's power supply is all generated by burning coal.

Since it is produced by burning coal, it is obvious that the performance of coal companies will be more stable than that of other types of companies.

In addition, with May approaching, temperatures across the country will gradually rise, and residents' electricity demand will also increase accordingly.

"The risk index is indeed rising. The market is up 2.14%, but the MACD indicator is in a state of shrinking volume. The DIFF line and DEA line are about to converge. If we can't get a big positive line tomorrow, I also predict a pullback." He Jing said, looking at the market information.

"Yes."

Zhang Yang nodded slightly and continued, "Moreover, the most crucial point is that the market has come down from 6000 points, and there are countless shares waiting to be sold off above, so it's impossible to pull it up all at once."

In his previous life, as a fund manager, he had specifically studied the psychology of retail investors.

Many retail investors who have been trapped in losses for a long time actually only have one thought: to get out of the trap and run.

For example, if you buy at 10 yuan and are stuck at 8 yuan, if the major players spend 10 trading days to pull the stock price back to 10 yuan, retail investors often won't immediately sell their shares because they will think it can continue to rise.

To get retail investors to hand over their shares, major players will tacitly create a sideways trading pattern.

If the market trades sideways for a month and you don't sell, or for three months and you still don't sell, what if it trades sideways for six months or even a year? Would you sell then?
Many retail investors might say they would never sell, no matter how expensive or cheap it is.

But in real trading, who can actually do that?
Basically, their patience is worn out, and as soon as the trading day reaches the cost price, they rush to get out of the market and exit the position.

There's an old saying in the stock market: the longer the sideways movement lasts, the more wildly it will rise.

The point is that the longer the price consolidates sideways, the more retail investors are shaken out. With fewer retail investors, the major players are more willing to push the price up.

Even if we take a step further and assume you are a major investor, looking at the massive amount of retail investors' shares above 6000 points, would you be willing to use your own money to help them get out of their predicament?
obviously.

You won't help me get out of this mess.

The stock market is not a charity; it is a place rife with human nature and strategic maneuvering.

(End of this chapter)