dhibooks Chapter 9: Early Signs of Success in the Stock Market
Chapter 9: Early Signs of Success in the Stock Market
Inside the VIP room, the air conditioner silently circulated warmth, completely shutting out the chill of early spring outside. The air was filled with the aroma of mahogany furniture, freshly brewed Longjing tea, and a silent, smoky scent of "capital."
Ling Yun sat on his own large leather sofa, leaning slightly forward, his gaze fixed on the 17-inch monitor in front of him.
The green numbers and curves pulsed against the dark background, like an electrocardiogram of capital. Downstairs in the lobby, retail investors craned their necks to watch the large screen, their emotions swayed by every fluctuation of the decimal point. Unlike them, Ling Yun's gaze remained calm; the slightest fluctuation couldn't affect his emotions.
On the coffee table in front of Ling Yun, there was a leather-bound notebook with simple candlestick charts and volume bar charts drawn on it in different colored pens.
He just hand-drew this based on his memory and recent data. In an era without sophisticated stock trading software, this was an essential skill for professional traders.
162 million.
This figure weighed heavily on his trading account, with 135 million of it being leveraged at a monthly interest rate of 3.5%. It was like installing a powerful but extremely unstable booster on his account, amplifying returns fivefold, but also increasing the risk just as much. The 105% liquidation threshold hung like a Damocles' sword, constantly overhead.
He couldn't just sit back and wait for Shenzhen Technology to take off like ordinary stock investors. Shenzhen Technology's launch would take another half month. He had to take the initiative and take advantage of all the fluctuations to quickly snowball his capital while ensuring the absolute safety of his principal.
Looking at today's price movement and trading volume, it perfectly matches Lingyun's technical analysis. On February 9th, there was a long lower shadow, forming a single-needle bottoming pattern. Before the Spring Festival, the price had been rising with increasing volume, steadily standing above the 5-day moving average, and all moving averages began to turn upwards.
Today saw a massive trading volume, followed by a gap-up opening and subsequent volatility with a range of up to 9.8%. This indicates that major players are shaking out recent profits by reselling their holdings.
The main force's shakeout won't end all at once. There will be a period of reduced volume and adjustment to shake out weak-handed retail investors, preparing for the future upward move. This will prevent a large number of retail investors who have made profits or broken even from selling off during the upward move, which would hinder the main force's progress.
After analyzing a series of technical indicators, Lingyun decided to increase his position. When the stock price fluctuated and fell back to around 4.6 yuan, Lingyun notified the trader by phone to add 14.2 shares.
After adding to his position, Lingyun now holds a total of 20 shares of Shenzhen Technology, with an average cost of 4.6 yuan per share, a total holding value of 92 yuan, and a cash balance of 70 yuan.
That concludes today's trading. If you have leveraged funds, you should still be cautious and not go all in, because Lingyun is not sure whether tomorrow's market will rise first and then adjust, or adjust first and then rise.
An upward surge is inevitable, attracting a wave of retail investors to enter the market. After adjustments, and a month of grinding down the market until retail investors lose patience and admit their losses and exit, is when the major players will start to exert their strength and push up the price.
Lingyun finally breathed a sigh of relief when the market closed at 3 p.m. and sat down on the sofa to rest.
Shenzhen Technology closed at 4.89 yuan, and Lingyun's holdings reached 97.8 yuan, with a profit of 5.8 yuan.
After the market closed, the various people in the VIP room began exchanging trading tips. Ling Yun packed his things and prepared to leave, partly because he wasn't familiar with them, and partly because he planned to go to the technology market to prepare for opening an internet cafe.
When Ling Yun came down from the second floor and walked into the trading hall on the first floor, several people looked at him. Before the leveraged trading, everyone in the hall knew that he had bought Shenzhen Technology with all his funds at a price of only 4.6 yuan. Today, his profit was guaranteed to be more than 6%.
The old man in the white undershirt approached Ling Yun. "Young man, do you think Shenzhen Technology will continue to rise? Should I buy more shares tomorrow?"
Ling Yun chuckled. This old man barely had any teeth left. Wouldn't it be better to have money for dental work? The stock market doesn't care if your money is your retirement savings; it won't show any mercy when it's harvesting profits.
Ling Yun patiently said, "Sir, I plan to sell tomorrow and buy back in after it adjusts. I estimate it won't start rising until the end of the month."
"Hey! You really think you're a stock market genius? You're saying the market will start rising at the end of the month." A middle-aged man wearing a baseball cap clicked his tongue, his tone full of contempt.
"I think it's just a lucky break! This kid just got lucky!" A thin old man next to him, surnamed Hu, whom everyone called Old Man Hu, was the one who had previously scoffed at Ling Yun's "all-in on Shenzhen Technology". At this moment, his face was a little ugly, but he still stubbornly insisted.
"One day doesn't prove anything; it might fall back down tomorrow," someone added sourly.
Hearing what the people around him said, Ling Yun didn't show any particular expression on his face. He didn't care, just glanced at them calmly, and then prepared to leave the sales department.
However, his calmness was seen by some as a silent boast.
"Oh, stock market guru, so proud of yourself just because you made money in one day?" Old Hu's sarcastic voice rang out first. He deliberately raised his voice so that everyone around could hear him. "You made quite a bit in one day, didn't you? Tsk tsk, young man, you've got guts."
Ling Yun paused for a moment, but he didn't intend to pay attention and continued walking forward.
The tree may wish to be still, but the wind will not cease.
Another fat man, who had previously echoed Ling Yun's mockery, crossed his arms, glanced at Ling Yun sideways, and said to his companion, "Hmph, he's just caught the wave; even pigs can fly. Stock trading relies on experience and foresight, not brute force. You might make money today, but lose it all tomorrow! This kind of play will eventually pay the price!"
That was a bit harsh, carrying a clear sense of curse.
Ling Yun stopped completely. He turned around, his gaze calmly meeting that of the fat man, then sweeping over Old Man Hu, who had a "I told you so" expression, and the curious, jealous, or gloating looks around him.
He knew that in this place where people believed in "making a fortune quietly," constantly backing down would only make them think he was easy to bully. If he didn't fight back against this unhealthy trend today, similar voices would only increase in the future.
He chuckled softly, a laugh devoid of warmth, yet carrying a clear hint of mockery.
"Sir," he said, looking at Old Hu, his tone unhurried yet clear, "you previously called Shenzhen Technology a 'dead fish' and advised me to buy Changhong and Shenzhen Development Bank, saying they were 'proper leading stocks.' May I ask, how much did Changhong rise today? And how much did Development Bank rise?"
Old Hu was stunned, his face instantly turning red. He knew, of course, that the two "proper leading stocks" had performed poorly today, their gains far less than Shenzhen Technology. He opened his mouth, wanting to refute, but couldn't find the words.
Ling Yun didn't give him a chance, turning his gaze to the fat man, his words suddenly becoming sharp, like a dagger drawn from its sheath: "And this one, you say I rely on luck, that I'm a pig on the wind? Then I'd like to ask, yesterday Shenzhen Technology's stock price fluctuated, with consecutive small positive lines accumulating at the bottom, and this morning's volume surge breaking through the previous platform resistance level—did you, this senior relying on 'experience and insight,' see these technical signals?"
He paused, his tone becoming even more sarcastic:
"Do you only think that every stock price movement means the big players are pumping up the price to sell off their holdings, and every pullback means the end of the world? Besides chasing highs and selling lows and making sarcastic remarks here, what else has your 'experience' taught you?"
"You...you're talking nonsense!" The fat man was red-faced and trembling with anger from the barrage of questions and scathing sarcasm. "When I was investing in stocks, you were still wearing diapers!"
"Ha," Ling Yun scoffed, his eyes sharp as knives, "You've been trading stocks for so many years, and you're still stuck in the lobby on the first floor, not even managing to get a seat in the VIP room. What right do you have to spout nonsense here? If I were you, I wouldn't even have the face to come here to trade stocks."
These words were too harsh! They practically tore away the fig leaf of self-comfort that many people were wearing! The surroundings fell silent instantly, everyone was stunned by Ling Yun's merciless and sore words.
Old Hu was so angry his fingers trembled as he pointed at Ling Yun: "You...you're arrogant! Disrespectful to elders! Uncultured!"
"Elders?" Ling Yun slightly raised his chin. His soul, emanating from the information age of the future, made him scoff at this kind of feudal patriarchal authority. "In the market, there are only winners and losers. If you want respect, let your account profits speak for themselves, instead of showing off your seniority and making empty promises here."
After saying that, he stopped looking at the group of retail investors who were speechless and pale-faced after he had rebuked them, and walked straight to the door.
Behind him came Old Hu's furious roar: "You brat! You don't know your place! Just you wait! You'll regret this!"
The fat man, enraged, cursed, "You think you're so great just because you've made a little money! Let's see how long you can be so arrogant!"
He didn't care about offending these people. He knew that the road to success would never be without doubts and stumbling blocks. Sometimes, showing appropriate sharpness and aggression was the best way to protect oneself and reduce trouble.