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

Chapter 44 Market Recovery (Bonus Chapter for Monthly Ticket Sponsors)

On Friday, Mr. Porter rushed back to Boston from New York, bringing good news from headquarters.

Starting next week, all of Paine Weber Securities' brokerage offices across the United States will lower trading margin requirements.

Due to the rapid increase in the number of securities companies, competition in the industry has become increasingly fierce, so companies of medium and lower size in the industry have begun to try various methods, including price reductions, to further attract customers.

However, because the relevant member brokers on Wall Street have signed industry-wide clauses prohibiting disorderly competition, their trading commissions are all standardized at 1%, which cannot be further reduced.

Therefore, reducing customer deposits becomes the best way to lower prices.

Previously, customers needed to pay a full margin deposit. For example, if a stock was worth $10 per share, a customer would need to pay $1 to buy 10 shares. But now, customers can pay as little as $2.5 or even $2 to own the same 1 shares.

The remaining funds are advanced by the securities company, but the securities company will also charge the client financing interest based on the amount of funds paid.

In short, the securities industry, which has always been high and mighty, is beginning to resemble gambling companies more and more.

When the other employees in the sales department heard this, they were all eager to take the opportunity to develop more clients; but Larry didn't think much of it, because he didn't need to find clients to earn commissions, since people who trade on their own don't want to live a life dependent on others.

That's what people who make a living from trading are like.

After the market opened in the morning, Larry loudly read out the latest quotes at the quoting machine. In front of him were four telegraph quoting machines, each continuously spitting out quotation tapes.

The clicking and clattering of the price quote machine sounded like industrial heavy metal rock music from a later era.

Whether it's because it's the weekend or because Wall Street traders have emerged from their post-New Year hibernation, trading has improved across the board today: there are more quotes, more active trading, and stocks jumping and rising sharply are commonplace.

Larry's heart started pounding!
The bugle calls coming from the paper tape were getting closer and closer. Larry could even hear the clanging of the massive army's metal armor and the clashing of their swords.

Larry quietly took out his small notebook, spread it out in the small gap between the four price quote machines, and loudly read out the price quotes while comparing the stock price patterns recorded in his notebook with the latest stock prices.

Before long, he found his next batch of targets for long positions: Carnegie Steel, U.S. Steel, Morgan Guarantee Trust Company of New York, and Rockefeller Oil Company.

Larry astutely noticed that these stocks, which showed signs of growth, were also among the first to benefit from the modern American economic value chain.

Why are they moving so steadily? Larry was a little puzzled.

However, his memories from his previous life told him that after each New Year, when the economy begins to recover, the most essential upstream industries, such as steel and fuel, would be the first to be affected by orders, thus leading to a booming economic climate.

Thinking about this, Larry became restless.

However, these companies are all large-cap stocks, the most actively traded stocks in the entire market. Such stocks will not experience the same dramatic rises and falls as small-cap stocks. Larry understands that if he chooses such stocks, his profits will come from holding them for a relatively long period of time, rather than from short-term trading that requires him to get up from his seat immediately.

With that in mind, Larry suppressed the urge to ask for leave and instead waited quietly until the morning session ended at 12 o'clock.

Larry didn't have time for lunch. He put on his coat, rode his bicycle straight to Liberty Avenue, where there were several medium-sized betting shops that could take his orders. Liberty Avenue, adjacent to the Charles River, was Larry's usual route back to his old house in the countryside, so he was quite familiar with the area.

Turning the corner from the iconic Tremont Hotel, Larry spotted one of the betting companies Logan had mentioned.

This betting shop is located in the lobby of a luxury hotel, making it convenient for hotel guests to buy stocks and try their luck. The betting shop is beautifully decorated, and its clientele is clearly of a higher standard than that of smaller betting shops.

Larry locked his bicycle, paid 5 cents to a cigarette vendor on the street, and walked a few steps into the gambling den.

Since it was closed for the day, there weren't many people at the betting shop. Larry walked a few steps to the counter.

"Can I buy stocks here? I'd like to buy some Morgan Trust shares."

The two tellers, who had been chatting behind the counter, stood up when a customer entered. One of them, noticing Larry's young age, gave him a disdainful look.
"Little friend, are you sure your father allowed you to buy stocks without his permission?"

Larry paused, then coldly replied, "If you think I'm not qualified to make a deal, I'll go directly to your branch manager and place an order."

The teller was speechless and awkwardly stopped talking, while another teller looked at the price board, turned to Larry and said, "Morgan Trust is currently at $32.8. This is the last price this morning. If you'd like to place an order at this price, well, the margin is $1 per share. Maximum 200 shares."

Larry had already locked $1200 in a safe, and now he only had a little over $1700 on him. Not counting the spare change he needed for living expenses, Larry planned to invest all of his funds in this economic recovery.

Larry bought 200 shares of Morgan Trust, 200 shares of Carnegie Steel, and 100 shares of U.S. Steel from this betting firm.

This had reached the limit for the betting bank's purchases. The teller handed Larry three transaction slips, all in pink. One slip read, "Buy 200 shares of Morgan Trust at $32.8, with a margin of $1 per share." The other two slips read, "Buy 200 shares of Carnegie Steel at $72" and "Buy 100 shares of U.S. Steel at $16.5."

Larry paid the 75-cent transaction fee and put the three transaction slips in his suede bag.

Then Larry went to two other betting companies and bought 500 shares of each stock, up to the trading limit.

After the three betting companies came out, Larry had 10 trading slips in his pocket. His two largest holdings were in Morgan Trust, totaling 500 shares.
Next were 400 shares of Rockefeller Oil, purchased at $31.9; 350 shares of U.S. Steel; and 250 shares of Carnegie Steel.

After buying these stocks, Larry paid a total of $1500, plus $2.5 in transaction fees.

After deducting the change, Larry now has $200 in his pocket.

Unfortunately, having lost his "first love" in the pyramid scheme, Larry could only buy stocks haphazardly, which was not only cumbersome but also cost him far more in transaction fees than usual.

And in the end, that $200 couldn't even be used to buy stocks.

　Thank you to "Brother of Colonel Chu" for the generous donation of 32 monthly tickets, and thank you to all the other fans who voted for Yanzu and Yifei with monthly tickets and recommendation votes.

　　
　
(End of this chapter)