Becoming the King of Bottom Fishing After Going All-In on A-Shares

Around 6 p.m., my three roommates who were interning also returned one after another.

Although studying in the third year is not mandatory, almost everyone will take the initiative to do an internship.

Without two or three internships, one is basically ineligible for top-tier positions.

Therefore, everyone takes advantage of their spare time or weekends to do daily internships.

Yang Cheng was the first to be admitted. He came from a powerful family and was directly assigned to an internship in a core department of a ministry, a respectable and easy position.

"Shen Zhou should also eat some of the fruit provided by the ministry."

Before Lu Chenzhou could answer, Xia Yaozong, who had followed him in, said, "No classes today. I went with MD to meet the chairman of a listed company, and just wasted another day."

As the top rich kid in the dormitory, he got an internship in the investment banking department of CICC by relying on his family's capital connections.

Zhang Yixing was the last one to get in, relying on his solid skills to secure an internship at a top securities firm's research institute.

Amid the financial crisis, the industry has reduced hiring, and interns are working even harder than full-time employees, writing research reports, analyzing data, and organizing minutes every day, often without even having time for dinner.

"The team leader threw out three more in-depth reports today; I'll probably be up until 2 a.m. again tonight."

Xia Yaozong picked up an apple, took a bite, and then looked at Lu Chenzhou: "By the way, did you buy any stocks today?"

When I visited in the morning, the chairman's secretary reported that their company's stock had hit the daily limit down, and the overall market had fallen by more than 6%.

According to the chairman, he is also pessimistic about the market outlook and plans to sell some of his shares when the opportunity arises.

Zhang Yixing hesitated and said, "When we have the post-market review meeting this afternoon, the chief analyst predicts that the index might fall below 1500 points. If you've already bought it, Chenzhou, you can consider selling it tomorrow."

Yang Cheng also said, "Today, the ministry held a macroeconomic symposium. I listened to several directors talk about the market rescue policies, and they didn't seem very optimistic."

All eyes in the dormitory turned to Lu Chenzhou.

Just as he was about to answer, there was a knock on the door.

Zhang Yixing opened the door, looked at Zhao Xianglong outside and the large group of thugs behind him, and asked tremblingly, "What are you going to do?"

Although he was a little scared, he still stood at the doorway, blocking the way.

Lu Chenzhou glanced at it and said, "It's fine. This is a school dormitory. Unless they don't want to graduate, they won't dare to cause trouble."

Zhang Yixing was stunned for a moment, then realized what was happening and made way for them.

Zhao Xianglong and his group came in, filling the dormitory to the brim.

He stared at Lu Chenzhou for a while before speaking, "You're quite a ruthless person, daring to go and leverage 10 times, throwing all 60 into CITIC Securities."

You were very lucky today. You bought at the limit-down price and made more than 5% profit by the close, earning over 30,000 yuan.

Do you know that if the stock hits its daily limit down tomorrow, the loss in just one day could be equivalent to a year's worth of your future earnings?

As soon as Zhao Xianglong finished speaking, the people in the dormitory erupted in a commotion.

"Holy crap! Chen Zhou, you're ruthless? I thought you were just saying you'd buy in with your entire capital, only a few thousand dollars, but you went all in with ten times leverage! Are you crazy?"

"Awesome! Renmin University has produced a ruthless person with 10x leverage. I can't help but admire him."

"What were you thinking, buying CITIC Securities at the daily limit down price? Buying securities stocks in a bear market? Are you out of your mind?"

"Damn it! I even lent him 500 yuan. Do you think I'll ever get that 500 yuan back?"

"Ugh! Don't even mention it. This morning he came to our dorm saying he had an urgent matter and needed to borrow money. I gave him 1000 yuan, and I guess it's all gone now."

"I never expected that he would dare to leverage ten times his investment and go all in on CITIC Securities, which had hit its daily limit down."

"Shenzhou, go sell it first thing tomorrow morning and give me my money back, okay?"

"Yes! Let's sell it while we still have a small profit, and then pay us back."

Lu Chenzhou looked calmly at the chattering crowd and said, "I won't sell it tomorrow. I will also repay the money I borrowed from you with interest, so don't worry."

Zhao Xianglong shook his head and exposed Lu Chenzhou's stubbornness.

"The loan from the high-interest lender next to Galaxy Securities has a monthly interest rate of 0.2 yuan, which means a monthly interest rate of 20%. With compound interest, the annual interest rate is close to 800%."

The daily interest rate for a loan of 10,000 yuan is about 67 yuan, and the daily interest rate for a loan of 600,000 yuan is about 4000 yuan.

In the current financial crisis, it's questionable whether a good job can even pay 4000 yuan a month, let alone 4000 yuan a day.

Oh right, I forgot you haven't even found an internship yet. You have no idea how hard it is to earn money and how tough it is to make a living.

Even though you earned over 3 today, will your luck stay on your side?

A group of people stared at Lu Chenzhou in disbelief. He borrowed money from loan sharks? 4000 yuan a day in interest? He must be crazy.

Lu Chenzhou frowned slightly: "You didn't get burned by a limit-down today, and then watch the stock price rise again but didn't dare to buy back in, did you?"

Zhao Xianglong's expression changed drastically, but he quickly recovered.

"So what? I can afford to lose a few hundred thousand, but what about you? If the stock price hits the daily limit down tomorrow, your life will basically be over."

Lu Chenzhou shook his head: "I never gamble on luck, I gamble on the overall trend."

You only saw the panic of the market hitting its daily limit down, and the exorbitant interest rates of high-interest loans, but you didn't understand the unusual fund flows during today's trading session, and you didn't see through the underlying dynamics of this market.

Zhao Xianglong scoffed, "The big picture? You, a student who hasn't even found an internship, dare to talk about the big picture? Don't fool yourself. You have a gambler's mentality; just wait to be wiped out and pay off your debts!"

Lu Chenzhou smiled and said, "Gamblers? Everyone gambles. They gamble on their jobs, their industries, their marriages. Every choice they make is a gamble, only the stakes are different."

Every transaction I make is based on a thorough understanding of the risks and a precise grasp of the market dynamics.

You can afford to lose hundreds of thousands because you have family savings to cover it.

I dared to borrow money at exorbitant interest rates to invest all my capital because I knew that after tonight, the entire A-share market would change dramatically.

When he said that, everyone in the dormitory thought he had really gone crazy.

Zhao Xianglong laughed in anger: "Fine, I'll see how you gamble, and see how the A-share market changes."

If CITIC Securities opens lower and continues to fall tomorrow, you'll not only face a margin call, but also be burdened with high-interest loans and ruined reputation.

Lu Chenzhou said calmly, "When the market opens tomorrow, you will understand whose side the tide is on."

I will make a fortune at the bottom of this bear market.

Looking at Lu Chenzhou, who was obsessed with stock trading, Zhao Xianglong chuckled and said, "I must be crazy to compete with a gambler like you who uses ten times leverage. Let's go, it's pointless."

After saying that, he left with his group of onlookers, and the crowded dormitory returned to quiet.

The three looked at each other, and finally Yang Cheng spoke first: "Chen Zhou, do you know the consequences?"

That's a loan with a monthly interest rate of 20 cents, which amounts to 4,000 yuan in interest per day. Forget about a margin call, you couldn't even withstand a slight pullback in the stock price.

Although the ministries haven't finalized the market rescue policy, nobody dares to gamble that an announcement will be made tonight. Your move is too risky.

Zhang Yixing quickly chimed in: "Yes, Shenzhou. Our institute's chief researcher repeatedly emphasized today that there is no bottom to a bear market, and 1500 points is not a defensive line at all."

If you leverage ten times and hold a single stock with a full position, you've completely blocked all avenues for retreat.

"How about reducing some of my holdings when the market opens tomorrow, paying off some of the high-interest loans, at least to avoid pushing myself to the brink."

Xia Yaozong said in a deep voice, "It's not just about the risks. You should also know that Warren Buffett, the stock market guru, has been against leverage his whole life, saying that leverage is investment poison."

Even if you correctly predict the overall trend, a small fluctuation in the middle can wipe you out of the market, leaving you no chance to wait for the positive news to materialize.

I've seen some big names in institutions fail because of leverage. You don't need to gamble on this; you still have a bright future ahead of you.

Lu Chenzhou looked at the three of them calmly, without wavering in the slightest: "I can take responsibility."

It consists of just four words, with no further explanation.

Silence fell in the dormitory again. The three of them looked at Lu Chenzhou, who was still stubbornly clinging to his beliefs, and knew that it would be useless to persuade him any further. They could only hope that he wouldn't go bankrupt.