Reborn in 2012, building a new energy empire

Chapter 23 The bigger the storm, the more expensive the fish

In the dormitory, Fatty Li had just woken up. Rubbing his eyes, he saw the encouraging red color and the significantly increased equity figures on Jiang Haoran's computer screen, and instantly became wide awake.

His mouth gaped open wide enough to fit an egg: "I...Holy crap! Brother Hao, you...you made so much money in just one night? That's faster than robbing a bank!"

Jiang Haoran closed the trading software and began packing his bag with a calm expression: "It's just the figures on paper, not yet in my pocket. I have class today, gotta go."

He remained as calm as if the tens of thousands of dollars in increased profits had nothing to do with him.

Fatty Li stared at his retreating figure, lost in thought for a long time. Finally, he muttered, "Luckily, I trusted Brother Hao and bought some. I really don't understand Brother Hao anymore..."

Jiang Haoran remained calm because he knew this was merely an appetizer.

The real feast is yet to come. His "all-in" strategy is being initially validated by the market.

And his wisdom will be finally tested during this long journey.

After opening with a gap up, the market did not rush to continue its upward surge, but instead fluctuated at a high level between 3145 and 3166, digesting profit-taking and the remaining selling pressure from differing opinions.

This trend is healthy and necessary.

After the market closed today, Jiang Haoran did not leave his seat. He quietly looked at the candlestick chart, his gaze calm and serene.

A gap has formed, and the consolidation in the 3140-3170 range has lasted for three trading days. Trading volume has increased moderately, but there has been no panic selling.

This is a typical "mid-air refueling" pattern—a brief period of consolidation occurs during a strong upward trend, digesting short-term profits while attracting new bullish investors to enter the market.

His fingers tapped on the keyboard, bringing up detailed holdings and funds information for his account.

I have 100 long positions in the soybean meal 1301 contract with a cost of 3075, and now I have a floating profit of 80,000.

Staring at the number, Jiang Haoran calmly considered it for a moment.

In the futures market, if you want to grow your capital quickly, you must never stick to your initial position.

"The principle of making big money with small capital is to dare to bet heavily in the 'middle' of a trend," Jiang Haoran silently recited to himself.

On the chart, the price has clearly broken through the bottom consolidation range that has lasted for several months, with trading volume increasing moderately and the moving average system changing from a tangled pattern to a clear bullish alignment. This means that the trend reversal has been confirmed by multiple factors.

At this moment, the market has just broken out of the cost-intensive bottom area, with little resistance ahead and room for upward movement. This is the key point with the best risk-reward ratio and the most suitable time to "add strength in the middle".

Without further hesitation, he prepared to use the available funds in his account to increase his position along the trend, quickly turning his cognitive advantage into a winning position in his account.

On the second day of trading, the soybean meal 1301 contract continued to hover around 3160.

Jiang Haoran sat down in front of the computer, his expression focused.

He did not act immediately after the market opened, but observed for half an hour.

Market sentiment is stable, with bulls and bears reaching a temporary balance around the 3160 level, while the upper edge of the gap at 3056 provides significant support.

He opened the trading software, and the more than 80,000 yuan in floating profits in his account were now all converted into "ammunition" for him to expand his battle.

Instead of aggressively going all in, he adopted a more conservative "pyramid-style averaging down" approach.

Tap your finger to place an order. First order: Add 30 lots at the price of 3158. Margin required: approximately 30,000 yuan.

After the transaction, the price fluctuated slightly but remained above 3160.

Second trade: When the price slightly retraced to 3157, he made another move, adding 20 lots to his position.

At this moment, his total open interest has reached 150 lots.

The average cost of holding positions has been slightly increased, but it is still far below the current market price.

More importantly, his account equity will increase significantly due to the floating profit from adding to his position, but at the same time, the risk will also increase.

Every point of reverse fluctuation in the market will result in more than double the previous profit or loss.

Fatty Li glanced at Jiang Haoran's screen, his eyes nearly popping out of their sockets: "Brother Hao! You...you've increased your bet again? Adding to a winning position, only to lose it all in one go. This is unacceptable!"

"Yes, the trend is still in progress, so we should increase our positions when necessary," Jiang Haoran explained simply before closing the trading interface.

"But... what if it drops back a little..." Just thinking about the fluctuations in the numbers made Fatty Li's heart race.

"So the key is whether it will fall back down." Jiang Haoran stood up, picked up his book, and said, "I'm going to the library this afternoon. I've set a price alert; my phone will notify me if it falls below 3050."

His calmness gave Fatty Li a strange sense of shock.

It's a calmness that fully internalizes huge fluctuations and follows only strategy and discipline.

It was as if he wasn't dealing with real money, but rather with variables in a complex mathematical model.

Looking at his retreating figure, and then at the meager few long positions and a few thousand yuan in unrealized profit in his own account, Fatty Li suddenly realized how ridiculous his previous smugness had been.

In his previous life as a trader, Jiang Haoran had heard a famous "proverb": heavy investment, adding to winning positions, frequent trading, and trend analysis are all generally good. Sooner or later, you'll gain the upper hand.

In his previous life, Jiang Haoran deeply understood the meaning of these 16 words of wisdom when investing, and in this life he possesses this ability and has enough confidence in the trend.

Because behind these sixteen characters lies a deliberately ignored ultimate variable: uncontrollable risk.

In this life, he still believes in "trends," and is even more certain than anyone else about the surging wave of industry and capital before him.

He also possesses the vision and courage needed to implement "heavy positions" and "adding to positions." But what truly distinguishes him from those "brave warriors" who are about to be wiped out is his renewed understanding and absolute reverence for "risk."

The market is always fair. The fattest fish often swims in the most turbulent and murky deep waters, surrounded by reefs and whirlpools.

Risk is the ticket to that deep water.

To dream of catching the biggest fish without any risk is the foolish dream of a mediocre person.

True hunters are not afraid of risk itself; they are afraid of ignorance and loss of control over risk.

His "all-in" was not a reckless, blind rush without regard for risk, but rather a result of repeated calculations, confirming that the "risk ticket" he paid was far lower than the potential value of the "fish" in the waters behind the ticket.

He knew the location of the whirlpool clearly, remembered the distribution of the reefs, and secured himself with the strongest safety rope.

This time, he not only spotted the unprecedentedly large fish that was bound to pass through this area, but he was also fully aware of the price he would have to pay to enter this deep water, and he was prepared to pay for it all.

The greater the risk, the more expensive the fish.

His confidence did not come from nowhere.

"Adding to winning positions" is a way to quickly snowball your gains, but it's a double-edged sword. It requires users to have almost absolute confidence in their judgment of trends and to be very precise in timing.

From a macro perspective, the fundamental factors remain unchanged: the persistence of weather speculation in North America, the potential recovery in domestic demand from the livestock industry, and the historically low level of soybean meal inventory.

Technically, a gap up is a strong signal of trend continuation, while the current sideways movement at high levels shows a weak willingness to fill the gap, indicating that the market's intrinsic buying power still dominates.

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