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

Chapter 9 Taking money to do things
The next day, at 8:30.

Zhang Yang's Nokia 3250 phone, which was charging on the table, vibrated twice, and he could clearly feel it while sleeping on the top bunk.

Already half-awake, he got out of bed and picked up his phone to check.

[尊敬的客户，您尾号2389的建行账户于2009年4月2号8点29分收到华国币20000元（大写：贰万元整）转账汇款，可用余额20294元，备注：《华信证券模拟盘大赛》替操盘的劳务费用。]
"Twenty thousand in hand."

Zhang Yang was in a great mood. He had to admit that taking shortcuts was the fastest way to make money.

However, making quick money also comes with risks. If the teacher finds out, or if the senior from Huaxin Securities finds out, Lai Weijie and he may be disqualified from the competition.

But risk and reward are proportional, and Zhang Yang is willing to take that risk.

Although they have violated the rules of the game, they can go their own way as long as they can bear the consequences.

This principle applies not only to competitions but also to society at large.

It's like you're not allowed to stop on the highway, but your bladder is about to burst, seriously affecting your driving safety, and there are still tens of kilometers to go before the next service area.

If you encounter this situation, as long as you can bear the consequences of being penalized, you can stop in the emergency lane to relieve yourself and save your bladder.

The biggest difference between students and office workers is that the former tend to be rigidly rule-abiding, while the latter are relatively flexible.

……

After washing up, Zhang Yang took his laptop to the cafeteria, quickly ate his fill, and then went to the library.

Upon entering the library, many students preparing for postgraduate entrance exams had already taken their seats to study.

Besides those preparing for postgraduate entrance exams, there are also those preparing for civil service exams, those preparing for professional certification exams, and some couples who are looking for a quiet place to be together.

Zhang Yang went straight to the sixth floor, to the study area of ​​the financial analysis room.

After plugging in the computer and connecting it to the library's wired network, he first logged onto QQ and, sure enough, found unread messages from Lai Weijie.

[Lai Weijie]: Have you received the money?

"received."

Zhang Yang responded by typing.

"Cough-cough-"

QQ's cough alert sounded.

[Lai Weijie]: Then log into my securities account. I'll log back in when the market closes at 3 PM.

[Zhang Yang]: Hmm.

Last night, Lai Weijie sent the securities account number, password, and trading password to Zhang Yang, who has already saved them.

Zhang Yang opened the Huaxin Securities platform webpage, logged out of his own account, and easily entered Lai Weijie's account number and password.

"despair--"

Click "OK" with the mouse.

The webpage redirected to the account page.

Lai Weijie's actual trading capital is zero yuan, and he has no actual trading records. It is likely that he recently opened a Huaxin Securities account to participate in the competition.

Zhang Yang switched to the demo account, and the total account capital was 103.19 million yuan, with a total return of 3.19%, which is very inconspicuous in the Shanghai Finance Investment School.

But don't forget that its initial drop was as high as 26%, so its current return can be considered a remarkable comeback.

Lai Weijie's stock holdings and capital amounts are as follows: Baosteel shares (40 yuan), JAC Motors (20 yuan), and Haide shares (30 yuan). The account's capital investment rate is 87.38%, which is almost a fully invested position.

Zhang Yang guessed that he intended to use the remaining 13 yuan for intraday trading. What is intraday trading?

As we all know, stock prices fluctuate in real time.

Suppose a stock opens down 4%, and you choose to cut your losses by selling all your shares. Then it hits the daily limit down, and you buy back the corresponding shares at -10%, which is equivalent to performing a reverse T, avoiding a 6% drop.

As for positive T, you need to hold the corresponding stock first, because A-shares are traded on a T+1 basis, meaning you can only sell it after one day.

Of course.

There are also T+0 ETFs available for trading on the exchange.

Let's assume you want to do a positive T. When a stock opens lower or fluctuates downwards during the day, you choose to buy more shares. When the stock price rises, you sell the shares you bought. This completes one positive T.

Whether it's a reverse T or a positive T, its essence is to reduce the cost of holding positions.

……

As trading commenced at 9:20 AM, Baosteel and Haide both opened 1.4% and 1.9% higher, respectively.

During the call auction, only one price level is visible. Zhang Yang decisively used the visualized price to list both Baosteel and Haide shares.

Since it's a demo account and doesn't go into real trading, the chips will be traded directly by the system.

His reason for selling Baosteel and Haide shares was very simple: their valuations had been repaired, the market had digested the positive news, and after several days of rising and falling, there were signs of a short-term peak.

Zhang Yang admires Buffett's investment style. His trading strategy is similar to that of retail investors: he likes to buy at the bottom and then trade to reduce costs.

But unlike retail investors who won't admit defeat until they see the coffin, he will be the first to liquidate his positions and leave the market when it's at its hottest.

Almost every few years, someone questions Buffett's investment decisions, thinking he's too old and has missed out on opportunities.

The result is that he may have missed out on 20% of the gains, but he precisely avoided 50% or even higher declines, so that he could remain unscathed during every economic crisis.

Not making the last penny is a habit of Buffett's.

The market officially opened at 9:30.

As Zhang Yang predicted, Haide Shares surged to a 3% gain before turning downwards, erasing all of its gains by 9:54 AM.

Haide Group's stock is included in Zhang Yang's market research report. It is a real estate company in Hainan Province. In its 2008 annual report, the net profit attributable to the parent company was 2908 million yuan, an increase of 17.22% year-on-year, and the earnings per share were 0.1923, an increase of 17.78% year-on-year. However, the debt ratio was as high as 40.82%. Considering the impact of the subprime mortgage crisis on the economy, the high debt ratio is understandable.

However, Zhang Yang did not find any outstanding features in this company; all the data were mediocre.

If I had to point out a bright spot, it would be that it's a real estate company, directly benefiting from the "Four Trillion Yuan Stimulus Plan".

However, the "Four Trillion Yuan Plan" alone could not have supported its extraordinary increase of 81% within five months.

Therefore, this stock is classified as a stock manipulated by market funds.

As for Baosteel, it is also a direct beneficiary of the "Four Trillion Yuan Plan". Unlike real estate companies, its business scope is broader. It is a contractor of infrastructure materials. Moreover, compared with its high point in 2007, it has been cut in half by nearly 77.8%, so it is perfectly acceptable to hold it for the long term.

However, long-term investments take time, and Zhang Yang only has 15 trading days left to operate this stock. He can only sell it.

He has also noticed in the past few days that the automotive sector is showing signs of activity.

The government's rural car purchase subsidy policy has had an almost immediate effect, and automakers such as Shanghai Automotive (now SAIC Motor) and Great Wall Motors have already released their first-quarter reports, showing a significant improvement in performance. This has increased future expectations for the commodity consumption market.

Zhang Yang opened his research report on the automotive sector, looking for actionable targets. He had been studying the automotive market and had also done detailed information categorization during this period.

After a quick search, he typed in a six-digit stock code and muttered, "Changan Automobile's capital is diverging, and it's currently in a technical sideways consolidation phase, offering a huge opportunity for trading."

(End of this chapter)