Those Years When I Was Forced to Top the Forbes List

Chapter 98 The First Week in the Stock Market

The thought struck him, and he was momentarily moved.

This is because entering the securities industry through stock trading software is a development path in the financial field.

Eastmoney has traversed this path.

Brokerages, also known as investment banks in other countries, act as a bridge between stock exchanges, companies, and shareholders. They are indispensable for any company that wants to go public. Their main businesses include securities underwriting and sponsorship, securities brokerage, and asset management, covering almost all aspects of the financial market.

Putting aside other factors, in the financial sector, which has extremely high qualification requirements, securities firms are the easiest to become "full-license" financial institutions.

Its status, well...

He is both the referee and the player.

It invests in other companies and helps them go public. It also goes public itself. It helps people speculate in stocks and speculates in stocks itself.

Goldman Sachs, a highly prestigious firm in the global financial sector, is a brokerage firm.

Entering this field means joining the ranks of "financial information tycoons." No inside information about investments and IPOs can escape their ears. They have privileges, but because they possess so much information, they also face numerous legal risks.

In general, working for a securities firm can be very beneficial if you want to get things done.

but…

Chen Xuebing frowned again.

Developing stock trading software is different from developing ordinary internet software. It requires access to far more complex information, which he himself doesn't understand, and he also lacks the talent to do so.

Making a profit by selling software is also a troublesome matter.

He didn't want to make his upcoming university life more difficult, and after thinking about it, he decided it would be best to wait until he had access to mobile phone channels before taking advantage of the situation.

Ultimately, the scale was too small, and there was no stock on hand.

Let's get the bullets first.

Chen Xuebing calmed down and began selecting stocks for leveraged trading.

Since the software didn't have much information, he searched online, pulled out the Shanghai Stock Exchange list released in 04, and looked for familiar names whose trading volume remained strong in later years.

Sinopec, China Minsheng Bank, Bank of Communications, CITIC Securities, Baosteel...

I selected about ten companies.

Moutai and China Shipbuilding (Hudong Heavy Machinery) were stocks he had considered buying since the beginning of his rebirth, and naturally, he also added them to his watchlist.

Unfortunately, Tencent is listed on the Hong Kong Stock Exchange, and there's no Stock Connect program these days, so you have to find a Hong Kong channel to buy it.

Next, we'll discuss his unique techniques.

Sector.

This bull market is known as the "reform bull market," and among the sectors that rose, he remembered were: non-ferrous metals, defense and military industry, and real estate.

I did a quick online search and selected nearly twenty companies from the three categories based on my experience.

The stocks in the sector were somewhat unfamiliar to him; he had no recollection of them at all. However, his greatest expectations lay in these "unknown stocks."

This list of margin trading companies consists of 40 companies in total.

Chen Xuebing made his selections quickly, creating a watchlist before 2:40 PM. He then selected 12 stocks that were close to their lows based on their 10-day and 30-day lows, and bought most of his portfolio, approximately 1.3 million yuan worth.

Not all the selected stocks need to be bought; they are only put into observation, and the timing of establishing a position is crucial.

Chen Xuebing adopted the tactics of large institutions, using extensive leverage to buy low and sell high.

No matter how much the sectors rotate, it will eventually be my turn. I'll take a one- or two-day profit from the sector's rise, then sell and buy back in at lower prices, waiting for the next rotation.

I won't sell if the price is too low, to ensure my win rate.

He can almost guarantee that most of the stocks in his watchlist will rise, so playing this way is very safe.

After the stock purchase was completed, the account had changed at the 3 PM closing time: 1995752.

The moment he opened the account interface, the group of observers behind him exclaimed in surprise: "Holy crap, he lost over four thousand in just one minute?"

Chen Xuebing smiled faintly.

What's the rush?

He glanced at the charts and saw that the market fluctuated at the end of the trading day, with some stocks in certain sectors declining.

I took a closer look at the stocks that had fallen, selected three of them, pinned them to the top of my list, and decided to increase my holdings tomorrow to lower my average cost.

When others panic, I buy more; the selling pressure becomes my cash cow.

You can buy based on your mood, your feelings, or even chase the rising price, but you must not sell casually. In a bull market, the problem is not getting trapped, but rather losing your composure and panicking to sell.

Moreover, there are costs associated with day trading. With all the transaction fees combined, a single buy or sell transaction can cost close to 0.4%. Without a profit of two or three points, he would rather hold onto the stock.

After nearly an hour of reviewing, he marked the target price for all 40 stocks on his watchlist, ready to buy when the price reached that level.

As for the selling point, it depends on the situation.

At 4:30, Hong Yongqiang called to ask if he could log in.

Chen Xuebing smiled and said it was okay to publish, but it was best not to.

Twenty minutes later, the phone rang again.

He started off a bit agitated: "You picked 40 stocks in such a short time? How could you pick them so quickly? And you invested 130 million? I see many of these are small-cap stocks worth over a billion. These aren't blue chips or white-horse stocks! Xiao Chen, I advise you to carefully observe the fundamentals of these stocks before investing. You can't just invest because the price is low!"

Chen Xuebing thought to himself, "You rely on research to make shots, I rely on prophecy to make shots. How can our speeds be the same?"
"Uncle Hong, we can't just stick to defensive sectors, can we? How are we going to make a profit then? ...You have other securities accounts, right? Why don't you put in 10 yuan and try it out according to your strategy? We can compare our profits in half a month?"

"Hey—you little brat, you won't listen to advice! You're gambling! You'll cry when you lose!"

"Welcome to come and do it."

……

On Friday, June 10th, a large bearish candlestick appeared, and the Shanghai Composite Index extended its panic selling from the late Thursday trading session, retreating (falling) 2.01% to 1108 points.

The Shanghai Stock Exchange's market capitalization accounts for the majority of the total stock market capitalization, at 2.3 trillion yuan, while the Shenzhen Stock Exchange's market capitalization is only a small fraction of that, at 1.3 trillion yuan.

What does it mean if the Shanghai Composite Index drops by two points?
A loss of tens of billions!
Chen Xuebing was caught off guard; the position he had just bought in the morning was already losing money in the afternoon, so he bought more shares.

Fortunately, the sector stocks performed relatively well today, with both Kweichow Moutai and China Shipbuilding Industry Corporation rising. Overall, I lost about 10,000 yuan.

Hong Yongqiang called to mock him.

"I sensed something was wrong this morning, thankfully I didn't enter the market. Look at your defensive sectors, are they as good as mine? You need to learn to stay out of the market! So, how about today, first day? I've already outperformed you by one percentage point!"

Chen Xuebing maintained his smile.

6. So, not investing in the stock market means you've outperformed others, right?
If you held no stocks for twenty years, you could easily outperform 90% of stock market investors.

"Alright, alright, Uncle Hong, that counts as today. We'll fight again next week."

……

The stock market is closed on Saturdays and Sundays, much like a breakup.

Chen Xuebing earns a fortune daily from his mobile phone and construction work, making over 20,000 yuan a day. However, he is still haunted by the kick from his newly reconciled lover, "Stock Market".

Although his daily income could cover two days' worth of losses in the stock market, he couldn't help but wonder: what if he had invested five million or ten million?
Am I really too arrogant?

The stock market makes people constantly reflect.

I spent half a day on Saturday researching the fundamentals of 40 stocks again, and then eliminated two of them.

Yang Qingyue rarely called to invite him to a picnic, and even said that many people from his class would be there.

She even used a coquettish tone to get him to go.

He showed little interest and declined, saying he was too busy lately.

He suddenly understood why he couldn't feel any spark of love.

Xin Mengzhen, Yang Qingyue's heartbeat for him was only strong at the beginning. No matter how much he was moved later, it never felt like a day apart was like three autumns. How could the stock market give him such a continuous and intense heartbeat?

The stock market has made me sexually indifferent!
No, no, I can't watch anymore, I need to get down to business.

……

The following week.

On Monday, the Shanghai Composite Index opened at 1106 points, forming a doji (a special candlestick pattern indicating that the opening and closing prices are the same or similar), down only 0.18%. The day was exceptionally fierce, but Chen Xuebing remained inactive.

He made a small profit of 1,000 yuan. On Tuesday, at 1093, Chen Xuebing suffered another 1.16% pullback in the market. Before the market closed in the afternoon, he realized that this was a downward trend and decisively abandoned his previous idea of ​​never selling. He sold some blue-chip stocks that were strongly correlated with the index before the market closed, keeping only the sector stocks.

I lost 12,000.

That familiar feeling is back again.

When you eat, you only take a small bite; when you spit it out, you get slapped so hard your teeth are knocked out.

Wednesday was a fortunate day. The index reached 1072.84, and after another significant pullback of 1.89%, his position, which was only 500,000, rose against the trend, and he actually made more than 5,000.

With a precise judgment in one day, his confidence returned, and he bought back blue-chip stocks at the end of the trading day, adding 120 million yuan to reach a heavy position of 170 million yuan.

Hong Yongqiang called to praise his operation. In the stock market, losing less is winning. However, Lao Hong also expressed concern about the three consecutive days of decline. He felt that the market had risen 100 points in a row from 998, which was too strong. He wondered if it would fall back to 1000 points.

Chen Xuebing firmly stated that he would not, and told him that his own funds would soon be available to enter the market, reassuring him.

Three days of green trading led the two men, who were at loggerheads just last weekend, to start comforting each other.

Inside the office, people were cursing and swearing.

"Holy crap? Zhongyuan Expressway's stock price has dropped again!"

"Damn it, my Dongfeng Motors stock also dropped by one point! Are you even capable, bro?!"

The office had six vice presidents, plus Jiao Gui, Chen's personal assistant. All seven of them were envious of their boss's stock trading, but none of them had time to open an account at a brokerage firm. Last Friday, each of them picked a "racehorse" in the stock market to see who was the best.

By the end of last weekend, the newbies to the stock market started arguing, each thinking they were the future stock market geniuses.

As the argument escalated, Gou Hongyi proposed that each person contribute 500 yuan to set up an internal gambling platform.

He also consulted Chen Xuebing.

Chen Xuebing wanted them to understand the capital market, and since everyone was now earning over two or three thousand yuan, and it was an internal competition, he didn't stop them.

So they raced their chosen stocks based on their price fluctuations, with a one-week limit. The first-place winner won 1,000, the second and third-place winners won 500, and the rest each lost 500.

The seven people suddenly became very engaged, checking the market every day after the market closed at 3 PM.

Currently, the top spot belongs to Huang Jin, who was quite lucky and picked "Fujian Expressway," which received some positive news in the past few days, causing its stock price to rise slightly.

The second place went to Yu Yi, who chose a Shanghai-listed company with the number "600000" – Shanghai Pudong Development Bank.

There's been basically no movement these past few days; the numbers are still red, and the increase is minimal.

Everything else was lost.

Yu Yi proudly shared his business acumen with everyone.

"My dad invests in stocks! He told me that in a bear market like this, choosing top-ranked stocks can actually help stabilize market sentiment, as they won't fall much!"

Gou Hongyi was full of ambition and chose a small stock with the highest volatility. As a result, he, who was usually the most astute, ended up losing the most, with a drop of more than 7%, and his eyes turned red with anger.

"What the hell! If you're buying stocks not for big gains, but just for stability? Then what's the point?"

Lu Yiwen, the third in line, said with a smile:
"You don't understand, do you? You want it to surge? Surges are all traps! How can we small investors make money? It's all the big players who make money. They buy stocks at low prices, then release a positive news announcement with the listed company, spend some money to push the price up, and the stock price goes up in an instant. When everyone is buying, they take the opportunity to sell it all."

Zhang Hang, an honest man, was immediately filled with righteous indignation: "Then what's the point of keeping the stock market? Let these bloodsuckers bleed us dry!"

Chen Xuebing came out of the inner cubicle after making a phone call and overheard their conversation, which made him feel slightly gratified.

This "hands-on experience" has made these clueless guys start brushing up on their stock market knowledge, and that's progress.

"Who says it's a bear market now? Have you seen the trading volume these past two days? The overall trading volume has remained stable at 90 billion, which is double that of the same period last month. Bull and bear markets are not so easily determined. Your knowledge is far from sufficient."

As Chen Xuebing spoke, he walked over and sat down next to Zhang Hang, continuing what Zhang Hang had been saying:
"Do you know what would happen if we didn't have a stock market?"

Everyone fell silent. Zhang Hang thought for a moment and shook his head.

Chen Xuebing lit a cigarette and exhaled a smoke ring.

"If there were no stock markets in the world, it wouldn't have a big impact on us. But if others have them and we don't, then all the companies in our country will be unable to fetch a good price, capital will flee in large quantities, our money will go to help others develop, others will be happy, and we will suffer."

Everyone in the office was taken aback, even Ren Ying, who was looking down at her book, looked over.

"Surely not, boss. The stock market is only worth a few trillion."

The most knowledgeable person, Yu Yi, looked doubtful.
"I heard that our development relies on GDP! Our annual GDP is over ten trillion! My dad's workplace talks about GDP every day, but never about the stock market!"

“Yes, GDP is indeed very important.” Chen Xuebing raised his hand, and Jiao Gui immediately found an ashtray and placed it in front of him.

He flicked his cigarette ash before slowly saying:
"But GDP is a product of production in all aspects of society. It needs the continuous rise of new industries to ensure its growth momentum. Do you know what new industries need most?"

"It's financing."

“Emerging industries face significant challenges in their initial stages. In addition to policy support from the national level, only professional investment institutions can recognize their potential, provide funding to help them grow, and transform them into profitable enterprises.”

"But what are investment institutions after?"

"They're definitely after something to sell."

"Moreover, it's not sold to others, but to the stock market. Only through this channel can they maximize their profits. Without this channel, no one would be willing to engage in venture capital, and many companies would not be able to take off."

"Although the stock market is small and most companies cannot go public, it is a source of hope."

"Without hope, foreign money won't come in, and domestic financial institutions will also look for opportunities abroad. There's a saying in the American financial world: wherever money flows, there will be prosperity. Is America prosperous because they're good at production? Their industry has long since declined. Their prosperity is due to their technological and financial hegemony. Every day, a large amount of money flows in and out. Even if you get some oil on pork, it will leave a bit of grease. If you keep getting oil on it, you'll get half a piece of meat off, and that's how people get rich."

As soon as she finished speaking, Ren Ying suddenly said, "Our company can also go public in the United States. The listing channels are not closed, are they?"

"Would foreign markets trust companies from countries without a stock market or corresponding regulatory policies?"

Chen Xuebing smiled and stubbed out his cigarette: "Without our stock market backing us up, some of the companies that ventured abroad wouldn't have fared too well. Besides, Chinese companies listing in the US have to be registered in the Cayman Islands, which is a tax haven. How many of them are willing to bring their money back? In the end, it's the other side that prospers, and we're even using our high-quality assets to endorse the US's credit. Going abroad to list is sometimes a last resort. Although it carries suspicion, most business owners have good intentions. But in the end, for various reasons, many of them become the prophecies of the skeptics."

Ren Ying had studied some finance in college, and upon hearing this, her throat bobbed, but she couldn't find any rebuttal, and she felt resentful.

"So... those emerging companies with poor financial statements can't go public in China, so they can only try to go abroad?"

“We have Hong Kong,” Chen Xuebing chuckled and said.
"Hong Kong stocks are highly inclusive, it is an international financial port, it also has tax reductions and exemptions, free entry and exit of foreign capital, and it adopts the US dollar-linked exchange rate, which makes domestic investment convenient. We should also use the advantages of foreign policies, but we should use them under conditions and restrictions. We should let foreign capital come to Hong Kong to send us money, but we cannot let them come in and completely affect the mainland. This is called Chinese wisdom."

He didn't mention the New Third Board or the Science and Technology Innovation Board that will be launched in the next few years. The government hasn't released any information about these things yet, so it would be too presumptuous to talk about them in advance.

These people may not understand now, but they will eventually understand in the future. We can't treat them like fools.

In other words, he said all this so that they could gradually understand.

"Oh...!" The group of people only half understood.

"Then as long as there's a stock market, it doesn't matter whether it's good or bad!"

Chen Xuebing's smile faded.

"The relationship is still very significant. The stock market enjoys the power to price assets. When we acknowledge the United States' position as the financial superpower, everything seems to be fine. But if one day we become strong enough and want to get our hands on some of the assets, and start competing with the United States for the core battlefield of global capital pricing, will investors in other countries be more willing to trust a strong stock market or a weak one?"

That's incredibly awesome.

Competing with the United States?
Everyone fell silent for a moment.

Chen Xuebing also knew that they lacked that confidence.

These days, without the Soviet Union to keep them in check, the US is like a BBK lighter, with 737 military bases overseas, able to do whatever it wants. The US dollar is the world's hard currency, and its financial standards are studied by everyone. It also exports its culture... Take that lion shaking its head and opening its mouth at the beginning of the movie, for example. How many people born in the 80s and 90s haven't seen it?

That's the MGM logo.

The Statue of Liberty holding a torch is a Columbia Pictures film.

The shield in the middle of the blue sky and white clouds is Warner Bros.

The gold logo of 20th Century Fox signifies the 20th Century Fox company.

A blue planet, that's Universal Pictures.

They belong to the eight major Hollywood film studios.

There are also things that are not visible to the general public but are closely related to the market. For example, last year, the four major grain companies, A, B, C, and D, manipulated the market by selling genetically modified soybeans, thus reaping the benefits of my country's soybean and soybean oil markets.

What about us? We've just entered the low end of the global trade market. The slogan of the Ninth Five-Year Plan before the millennium was "to initially establish a socialist market economy system."

This round of the "15th Five-Year Plan" aims to "enable people to experience a more comfortable and prosperous life."

Who can imagine what the next 20 years will bring?

Chen Xuebing, immersed in the moment, felt his blood boiling and didn't want to say anything more. He raised his hand to check the time and stood up.

"Liang Hui, come with me to the construction site tomorrow. Lu Yiwen, Gou Hongyi, wait for me to come back and come to Shenzhen with me."

(End of this chapter)