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

Chapter 117 The Secrets of Intraday Short-Term Trading (3.5k views, please vote)
A customer dressed in a black suit was tempted and, ignoring his partner's advice, rushed to the counter to buy 200 shares of Remington.

Before the trader could even finish filling out the order, the stock price jumped from $38.75 to $39.25!

The trader coldly changed the previously entered "Buy 200 shares of Remington at $38.75" to "Buy 200 shares of Remington at $39.25".

A price difference of 50 cents wiped out the customer's profits instantly.

The customer loudly berated the teller for changing the original price, but the teller coldly replied...
"Before the transaction order leaves the counter, it will be calculated based on the latest price. Do you want this transaction order? If not, I can help you cancel it!"

The customer hesitated for a moment before slowly pulling out $200 and 25 cents for transaction fees and slapping them onto the counter...

But just then, Remington's prices came up again.

"Remington, $39.5!!" the young man at the price quote machine shouted to the crowd.

The teller snorted and quickly spread the transaction slip back on the counter, changing the price to $39.5.

The customer was furious, but when the teller asked him with a sour face if he wanted it, the customer swallowed his anger and quickly put the transaction slip into his pocket.

By the time the morning session was about to close, Remington had officially broken through $40, reaching $40 and three-quarters!
That customer made $250 instantly from 200 shares!

His partner, who had just tried to dissuade him, immediately gave him a sharp look and advised him to quickly cash out...

The customer hesitated for a moment, looked up at the wall clock, gritted his teeth, took the transaction slip, and walked to the counter.

The next quote from Remington climbed to exactly $41, and the client's face showed a determined look, because his profit had already reached $300!
This is two and a half months' worth of my salary!
At 12 o'clock sharp, the morning stock market closed, and the last Remington offer returned to $40 and three-quarters.

The client in the black suit had just assumed that the $300 was his profit. Now that the stock price had fallen back to $40 and three-quarters, the client suddenly felt that the $50 he had earned had vanished, and he felt heartbroken.

Oh, there's only $250 left!

The $50 I just lost is equivalent to 10 days' wages for me...

No, what if the stock drops further this afternoon?
The customer in the black suit became increasingly upset and rushed to the counter to cash out his 200 shares of Remington, pocketing the $250 profit and the $200 cost.

But as soon as the market opened at 1 p.m., Remington's stock price jumped to $42 and one-eighth.

The customer in the black suit suddenly felt he had suffered a huge loss. If he hadn't sold his 200 shares, his profit would be $525!

In an instant, the regret of closing out his position in the morning, the pain of missing out, and the fear that the stock price would continue to rise overwhelmed the client in the black suit, leaving him suffocating.

The customer in the black suit had veins bulging on his forehead, a surge of nameless anger rising within him; he stormed to the counter, slammed $400 on it, and yelled at the teller inside.

"I want to buy 400 shares of Remington! Yes! 400 shares!"

The friend who had just advised him against buying and then urged him to cash in his money rushed up to him again to tell him not to act impulsively!
The customer in the black suit retorted with a dark expression, "If I hadn't listened to your lousy advice, I would still be holding 200 shares with a profit!"
The teller, who had seen this kind of thing many times, glanced coldly at the customer in the black suit and his partner, and filled in the transaction form: "Buy 400 shares of Remington at $42 and one-eighth, at a cost of $1 per share."

The transaction slip was then handed to the customer in the black suit.

Before the customer in the black suit and his partner could even figure out whose fault it was, the latest price was released.

The young man standing in front of the price quote machine shouted, "Remington, $40.25!"

The customer in the black suit could hardly believe his ears. He picked up his transaction order for 400 shares, looked at the price of 42 and one-eighths, and felt as if he had fallen into an ice cave.

Oh no!! The stock price has dropped by nearly two dollars, and my margin for 400 shares is only $1.

The margin was wiped out instantly, and the transaction order became worthless...

I'm out! My $400 profit vanished in an instant...

A pain, regret, and fear even more intense than before enveloped the customer in the black suit once again.

The customer in the black suit was devastated. He had originally made $250, but Remington stock opened high in the afternoon, and in a moment of impulsiveness, he rushed in again...

I bought at the peak! I lost $400 in one go!

The customer in the black suit was in extreme distress. After a moment of silence, he felt he needed to place another order, and he would stop once he could earn back the $400 he had lost.

He suddenly looked up at the price chart and saw that it was still $40.25. A thought flashed through his mind, and he realized that the stock had probably stopped rising and was starting to fall!

So, the man in the black suit took the remaining $50 in his hand, then took out another $50 from his pocket, walked a few steps to the counter, and said to the clerk,
"Short 100 shares of Remington! Now!"

The trader glanced at him, pocketed the $100, filled out a trade order for him to short 100 shares of Remington, and handed it to him through the fence.

The man in the black suit clutched the $100 transaction slip, but before he even reached the bid board, the latest offer from Remington arrived…

"Remington, 42 and a-eighths of a dollar!!"

The customer in the black suit was stunned on the spot!
Remington's stock price didn't fall, and it's starting to rise again?

My short order for 100 shares of Remington has become worthless again!
I was making a lot of money, but how come not only did I not make any money, I also lost all my US dollars?!

That's two whole months' salary!

The customer in the black suit clutched his head and let out a painful howl like a wild beast.

Larry, who witnessed the whole thing, shook his head, sighed, and sat back down in his seat.

In theory, gambling dens that leverage extremely high amounts of money and take on unlimited risks are the most likely to go bankrupt.

In reality, however, most betting companies make a fortune. This is not because the operators of betting companies are particularly clever, but because of probability, since 95% of traders ultimately lose money.

It's also human nature, because most traders find it difficult to escape the control of human weaknesses such as greed and fear.

Furthermore, these traders are particularly prone to getting carried away and easily get angry at the market for profits and losses that don't belong to them, which is simply unreasonable!
Larry is very fortunate that he understood a key principle early in his trading career:
The market is always right, and it doesn't care who makes money or who loses; it simply moves forward silently according to its own rules. If you feel your forehead burning, your body sweating profusely, and you have to unbutton the top button of your shirt to breathe properly, then you're no longer suited for trading!

Many people only wanted to "make up for their losses and then stop", but ended up losing everything for this elusive goal.

Taking advantage of the black-suited short-term trader's breakdown, Larry once again reminded himself:

If you want to do intraday short-term trading, only do one direction per day. If you are right, hold the stock until the price increases with volume but stops rising, or turns down and falls below the profit-taking level.

You must respect the market, and when you feel overwhelmed, leave the betting company immediately to ensure you can protect your principal.

……

By the time the market closed at 3 p.m., Remington had broken through $50!

Larry had no intention of making too much of a splash with this initial 100-share trial, and soon closed the deal at the trading desk when the share price exceeded $50 and three-quarters.

The teller, who had been wearing a cold expression all day, frowned when she received Larry's transaction slip.

He first glanced at the price of Remington on the bid board: $50 and three-quarters, then looked at Larry, paused for two seconds, and slowly said...
"Well done, sir!"

Larry smiled faintly and replied slowly, "Just lucky!"

The trader filled in "Closed position of 100 shares at 50 3/4", then added his name, handed the transaction slip to Larry, casually pointed to the teller counter, raised his eyebrows and said, "You can go there to cash out your profits."

Larry thanked him for the reminder, walked slowly to the counter, and handed his transaction slip to the cashier.

The cashier was slightly surprised when he received the transaction slip. He glanced at Larry first, and then began to calculate the client's profit.

50.75 minus 32.25 equals 18.5.

In other words, if you earn $1850 per share, then the total profit for 100 shares would be $18.5!

The cashier first counted out $100 in costs, then $1850, for a total of $1950, and handed the money to Larry.

"Thank you!" Larry smiled kindly at Na, put the $100 he had used as principal back into his pocket, put it together with the $50 he hadn't used that day, and neatly put the $1850 profit into his wallet.

Including the $315 that was left in my wallet, I now have $2165 in my wallet.

good! good!
I'm definitely more suited to the kind of short-term, quick-in-quick-out trading that's common in the gambling industry.

Not only does it offer liquidation prices that transcend time and space and are immediately visible, but it also provides high leverage for potentially huge gains with minimal investment.

A $30 stock has 30x leverage, and a $100 stock has 100x leverage!
If it weren't for the fear of not being able to come up with the money, Larry would be willing to stay in the betting company for life.

Larry put his wallet in his coat pocket, looked around, and then walked out of the betting shop.

Larry tried his hand at something today and got some good results, but unfortunately, he didn't get to see the person he wanted to meet.

Larry was actually really looking forward to seeing Henry Williams, the one who gave the call-outs, again.

Larry felt that if he wanted to avoid attracting too much attention from the metropolis regarding the gambling house, following his lead was the safest option.
.
The next day, Larry entered the Metropolitan Casino at exactly 10 o'clock.

The Metropolitan Casino remains unchanged.

Customers arrived early, holding sugary and alcoholic beverages, and sat in front of the price board, waiting for the market to open.

Larry had a sudden inspiration: if he had the ability to transcend time and space, he could make some metformin and liver-protecting pills and sell them to these Metropolitan customers.

When Larry walked to his usual seat, he was surprised to find that someone was already sitting there.

This person turned out to be Henry Williams, the man I had been dreaming about all day yesterday, the famous caller at the Metropolitan Casino.

Larry's eyes lit up, and he walked over to him in a few steps, asking softly, "Mr. Henry Williams, you've finally arrived..."

Henry Williams, a burly man with thick arms, turned to stare at the blond boy who had greeted him, his brows furrowed deeply.
"What do you want?" Henry Williams asked in a muffled voice.

"Sir, I've heard so much about you here. I've heard you're very skilled and make a lot of money, is that true?" Larry's tone was full of sincerity.

Henry Williams' face lit up with arrogance. "Of course, I think that in the Boston Metropolitan Casino, the only customer they truly fear is me!"

Larry nodded and continued, "...Then, can I learn how to trade stocks from you? I'm willing to pay. Every time you give me a trading signal and I make money, I'll pay you one-third of the profit as a reward!"

As he spoke, Larry took the $150 from his pants pocket.

Henry Williams looked surprised. He glanced at the $150 in Larry's hand, hesitated for a moment, and then slowly nodded.
"Okay... I'll let you know when I see a good opportunity."

　The part about the client in the black suit was added by me: "A friend of mine (and I really mean a friend; I haven't traded for two months because I've been writing a novel), had his lithium carbonate account liquidated today..."

　　He went long on lithium carbonate on Friday, but exited too early and went short again. He didn't sell at the end of the day, and today it hit the daily limit up and then exploded.

　　Fortunately, the position wasn't large, just a small amount, around a hundred thousand...

　　It's truly disgusting. Those who went long ended up going short, those who could have made a profit from a limit-up stock ended up losing money, and those who were supposed to be day traders ended up holding overnight short positions...

　　This section serves as a control group for Larry, and also contains some personal opinions; hopefully, everyone will take it as a warning.

　　Trading is a test of the mind, a perilous journey.

　　Good luck to everyone, and please don't do anything when you're in a bad mood.

　　May you be safe and sound, and may you prosper!

　　
　
(End of this chapter)