Reborn in America, I am a legendary short seller on Wall Street.

Chapter 109 Miscalculation (Part 2) (3.5K votes requested)
Following Larry's words, Henry Ford was already envisioning how to improve his car and how to break down the production process.

Larry, however, was taking stock of his assets to see if they were enough to increase the company’s share in the new Ford from the very beginning.

Larry had previously deposited $2.4 in Reading's own account.

He has now cashed out his long position in 1000 Colt firearms shares. The cost price of these 1000 shares was $26.5. The closing price is currently unknown, but it is definitely above $100. In total, he has made a profit of more than $75 per share from these 1000 Colt shares alone, for a conservative profit of $7.5.

This doesn't even include the 500 shares that haven't been liquidated yet, the $17927 profit from the Carnegie Steel stock that Logan brought him and is deposited in the bank off-exchange, the $3500 he has in his safe, and the nearly $3000 in cash in his wallet.

Larry felt that even at his most conservative estimate, he could put up $10 in Ford Motor Company’s first round of investment.

If Larry can successfully take over Ford, he can also contribute a lot of his previous life's experience with automobiles, allowing Ford to avoid many detours.

With Ford's technology and intellect, plus Larry's protection as a reborn individual, Larry was certain that the Ford Motor Company in the new timeline would achieve success much sooner than in his previous life.

This is the starting point for getting rich quick!

While Larry was quietly contemplating, the trader walked up to him, handed him the trade confirmation slip, and said with a smile, "Sorry to keep you waiting, here is your trade confirmation slip."

Larry nodded, took the transaction confirmation slip, and glanced at the latest Colt price on the price list: $104 and three-quarters, $2 higher than the previous low. This made Larry slightly puzzled.

Larry glanced at the clock on the wall again; it was 10:42.

Colt's stock price did not break through as expected, but it was somewhat surprising that it did not retest the 100 yuan mark.

Larry stared intently at his transaction record. The prices for his first 500 shares were:
105美元整，成交150股；104.5美元，成交300股、102.5美元，成交50股……

An average transaction price slightly above $104.5 is acceptable!
Larry thought to himself, placing the transaction confirmation slip under his palm...

Wait a minute! Something's not right here!

Larry suddenly felt incredibly agitated. He picked up the transaction confirmation slip again and examined it closely, instantly spotting the problem.

When I decided to sell, the stock price was starting to fall from its peak of $105.5. However, the transaction record showed that at the moment I sold, my own sell order of 500 shares drove the price down three levels, with the lowest transaction price being $102.5...

This means that, at least when Larry sold his 500 shares at market price, there wasn't much selling pressure in the market.

Haven't the big money investors sold? Are they still holding on? But I, a "retail investor," have sold...

Larry suddenly felt that something was wrong, and that he must have overlooked something in Colt's stock price increase.

My own stock trading records show that, most likely, it's retail investors like myself who are taking profits and closing out their positions who are selling, while the big Wall Street investors who know Colt is going to start fundraising and that Mr. Morgan is going to participate in the fundraising haven't sold...

Larry abruptly stood up, strode to the price quote machine, and urgently asked the young man in front of it,

"Can I see all the Colt offers for today?"

The young man pointed to the long strip of paper piled on the ground, "Help yourself."

Larry frowned as he picked up the paper strips and read them one by one. He soon discovered that during the time he and Mr. Ford were discussing the assembly line and equity distribution, Colt's stock price not only never fell to test the $100 mark, but it didn't even stay at the opening price of $102 for long. Instead, it jumped back to above $103 and stayed there for more than ten minutes.

"The path of least resistance remains unchanged! The stock price has not shown signs of exhaustion after breaking through $100; on the contrary, there is continued buying!"

Larry was suddenly struck by an answer that shocked even himself!
Larry appeared remarkably composed because he had anticipated every possible reaction from all sides… He had even considered that large Wall Street funds would take advantage of the positive news to unload their holdings…

Larry felt there was no need to try and profit from the start, so his plan for today was to exit gracefully. That's why he kept reducing his positions with the intention of closing them out as soon as the market opened.

But now a crucial question arises: when the market's reaction differs from one's expectations, is the market wrong, or are one wrong?
This problem is not a problem at all for Larry, who trades based on paper tapes of exchange rates.

The market is always right! Although the ticker tape couldn't immediately reveal the reasons for price changes, it was clear that Colt's stock price hadn't fallen; it was still rising...

Just then, the trader delivered a second transaction confirmation.

Larry quickly took the money and looked down: 100 shares were traded at $103.25 and 400 shares were traded at $103.5!

Something's wrong!

Larry clearly remembers that he sent the message after seeing Colt's stock price fall back to the opening price of $102.25. Larry had already prepared for the average transaction price of the second 500 shares to even drop to $100.

The order for the 500 shares was placed at market price, while the order for the 500 shares was placed at least five minutes later on the exchange floor. However, the average selling price was only $1 lower than the first order.

The transaction price further demonstrates that no one is selling these shares; on the contrary, some people are secretly accumulating them.

Larry's eyes lit up like a wolf's. He approached the front desk manager with a cold face and asked with a frown, "Mr. Manager, I request that you help me as soon as possible to find out what exactly happened to Colt's stock?"

The portly manager looked up at Larry, adjusted his gold-rimmed glasses, and asked doubtfully, "Collt firearms? He announced financing yesterday, and Morgan Bank is planning to participate in the financing plan..."

“No, it’s not just that!” Larry said coldly. “Isn’t this news explosive enough?” the fat manager retorted.

Larry's eyes narrowed, and he suddenly said sharply, "Just investigate! Don't give me any more damn nonsense!"

The portly manager never expected Larry to suddenly turn hostile, and his face flushed slightly. But Larry's words were icy, like cold water poured on scalding coals, like a cold sword cleaving through a hemp ball; his tone and words carried an undeniable authority.

The fat manager dared not say anything more, and hurriedly ran to the telegraph room to have the telegraph operator send a telegram to the New York headquarters to inquire what had happened.

Henry Ford and many of his clients had overheard the argument at the front desk and were now looking up at Larry. But Henry Ford was astonished to find that the once amiable young man seemed to have suddenly become a different person, no longer like a teenager, but rather intimidating.

At this point, Colt's latest offer arrived.

The young man standing by the price display shouted, "Collt firearms, $106.25!!"

The whole place was in an uproar! !
Everyone in the sales department was captivated by Colt's latest offer, which surpassed its previous high of $105.5 and continued to rise.

Larry's face turned ashen; he knew he had made a mistake in selling. The stock hadn't fallen as he'd expected; instead, it continued to rise.

Larry was now certain that he had overlooked something!

However, now was not the time for regrets and hesitation. Larry strode to the trading counter, pulled out his trading slip, and began scribbling on it with his pen.

"Collt firearms, purchased at market price..."

As Larry finished writing, he looked up and asked the trader, "How many shares of Colt can I buy with my current margin?"

The trader was taken aback and quickly looked down at today's chart:
This client, Larry Livingston, had $2.4 in spare funds in his account.
I just closed out 1,000 shares of Colt at an average price of less than $104, leaving me with $104,000 in margin. The total of these two items is $128,000.

In addition, Mr. Livingston's 500 shares of Colt firearms that he had not yet closed out yielded a profit of over 20%, amounting to $3.19.

Therefore, his total available funds, including his credit account and temporary credit account, amount to $15.99.

This gentleman's leverage is still 4 times, so the number of shares he can actually buy in his margin account is about 6000!
The trader double-checked twice before stammering to Larry, "Sir... your stock margin account can buy a total of 6000 shares, or maybe slightly less, but 6000 shares should be fine..."

Larry remained silent and finished writing the trading instruction on his order book:
"Colt Firearms, buy 6000 shares at market price."

He then signed his name, "Larry Livingston".

The traders were dumbfounded when they received the order. Despite the fat manager's previous experience, they still nervously checked and confirmed it with Larry.
"You mean... buying 6000 shares of Colt firearms at market price? Right now? But... the stock has already gone up a lot?"

The instant the trader asked the question, a series of warning words flashed through Larry's mind:

"Don't buy in! This is just a feint by the big players; the stock price will fall further..."

"You're an insider on this stock. If you don't know why the price keeps rising, this kind of price increase must be fake, there's something wrong with it..."

"Are you crazy? If you trade at market price now, the cost price you could be buying is already over $110. How can you possibly make a profit at such a high stock price?"

"Damn it, your current purchase price is already much higher than your previous selling price! You're chasing the price up!!"

"You've already made money, don't be too greedy, know when to stop."

"There's no way any news could cause Colt's stock price to double and then surge again. Let's get out of here, Azu!"

……

These voices echoed in Larry's mind like the whispers of ancient gods, and Larry even admitted that these words were true and wise.

Even if I don't add more shares now, I've already made a fortune on Colt stock, so there's no need to take any more risks!
But the only rebuttal to those voices was: "We need to look at whether the trend exists, not the level of the stock price."

The current frenzied performance of stocks shows that the price trend has not changed at all; the path of least resistance is still upward. Therefore, as a trader, there is no need for further reasons.

The market is always right!
Larry looked at the trader and said in a cold, uncompromising tone, "I confirm that you will buy 6000 shares of Colt firearms at market price right now!!"

The trader dared not say anything more and hurriedly took Larry's trade order to execute it.

Larry stood motionless, his face utterly calm, but his heart was in turmoil, unable to find peace for a long time...

Those inner voices continued to pour out their grievances, lament, and berate their own irrational decision...

Larry's face contorted in a grimace as he silently roared at the voices within him:
"Enough!! I earned all that money with just $5. At worst, I'll lose it all and start over!! Give me three months, and I'll be back in Reading's temporary VIP customer seat!"

As soon as I finished speaking, all the jumbled thoughts in my mind vanished without a trace...

(End of this chapter)