If you cheat, money will follow

Chapter 38 Adding positions at the bottom and fishing in troubled waters

Naspers did not publicize its decision to exit.

But there are no secrets in this world.

If there is one, there are two, and if there are two, there are four. Soon, the whole world knew that the media giant Naspers was going to withdraw from Goose Factory.

The news was fed back to the market, further pushing the stock price of Goose Factory down.

It directly broke through the issue price from 4 Hong Kong dollars per share to 3.2 Hong Kong dollars per share, and its market value evaporated by two-thirds.

In the stock bar, things must go to extremes, and the leeks are full of emotions.

"Brothers, market expectations and pessimism have been digested during the sharp decline in stock prices. The current price is reasonable and it is worth buying."

"I have added positions, but my butt determines my head. I think now is the best time to buy in batches. Looking at the long-term cycle, the probability of making money is very high. In this round of falling market, I continued to add positions. Today's plunge, I again I added 1600 shares. If it continues to fall, I will continue to add."

"A true warrior dares to face the dripping blood!"

"What everyone is concerned about is whether the stock price will hit a new low... I think it doesn't matter whether it creates a new low. The bottom is just an area, not a certain price. No one can guess what the lowest price is, and the lowest price is a fluctuation. It’s uncertain, we as retail investors can’t grasp it, what we can do is buy in batches at the bottom area, lengthen the cycle and look back, now we are buying at the low point.”

"The crash has come to an end, so you must dare to take action. When others are fearful and hesitant, you should be greedy in order to obtain excess profits."

"The fundamentals, long-term competitiveness and long-term ownership value have not changed fundamentally. With the largest customer base, the top business model, the strongest moat, the most stable monopoly, and the lowest valuation, we We should seize this once-in-a-lifetime opportunity, invest bravely, make contrarian investments, and take advantage of bargains..."

"Everything said above is correct. The current market performance is only temporary, and negative public opinion cannot shake the fundamentals. As long as we don't make fundamental and principled mistakes, the stock price will definitely rise again and reach unattainable heights. By then, it will really be It’s out of reach, and now is the best opportunity.”

This is an excerpt from a stock bar. It seems to represent the views of most people in the current stock bar and is extremely representative.

This seems to indicate that "buying the dip" has formed a consensus and occupied the absolute high ground of thought.

There is no room for decline, rebound is the only direction.

Thoughts determine action.

The next day, the opening stock price of Goose Factory... plummeted!

Countless retail investors fled regardless of the cost, which is in sharp contrast to the views in the stock bar.

The stock price fell from 3.2 Hong Kong dollars per share to 2.3 Hong Kong dollars per share, a drop of 28.13%.

Some people are cursing: "I... CNM, didn't you say that you should buy in batches at the bottom area? Didn't you say that the fundamentals have not changed? Didn't you say that extending the cycle is destined to make money? I just added 2000 shares, you all run away Already?"

"..."

"Upstairs, do you believe what they say in the stock bar? They are talking nonsense and are waiting for you to take over."

"In fact, if you look at the extended cycle, it is indeed at the bottom, but you can't wait."

"The only certainty in the stock market is uncertainty. You are not just a newbie, are you? They are just people waiting to escape to build momentum. I never look at these."

"Haha... lengthening the cycle? Who the hell would believe in lengthening the cycle and looking at the scenery from a high position?"

"Lengthen the cycle? People who speculate in stocks want to make quick money and enjoy it early. Who is really in the long-term?"

Jiangzhou.

While Zhao Zhiwei was implementing the planned plan, Chang Le also organized Gu Jiahui and some employees of the trading department to enter the global market in a big way.

It not only trades foreign exchange, crude oil, but also gold and stock index futures, multi-line, high-frequency, and ultra-short-term trading.

This year, more than 6000 financial institutions have collapsed one after another, which has brought about ups and downs in crude oil, gold, and stock index futures. It is a good time to take advantage of people's crisis and fish in troubled waters.

Loose monetary policy has led to a lot of hot money in the market.

The U.S. dollar has been depreciating all the way. Due to concerns about high inflation risks, the U.S. dollar is no longer the best asset.

Gold, crude oil and products that have a high negative correlation with the US dollar index have temporarily become "hard currencies" in the economic crisis.

Let’s look at crude oil first.

As early as early 2007, commodity futures guru Rogers predicted that oil prices would break through $100 sooner or later, and even rise to more than $150.

When he said this, oil prices had just experienced a correction from highs, and the price was only $50.

At that time, everyone sneered and dismissed Rogers' prediction.

Then, subsequent market trends increasingly proved that $100 did not seem to be an unattainable and unattainable price.

On the first trading day of 2008, oil prices exceeded $100.

After that, it fluctuated all the way up, reaching a record high of $7 in July, just one step away from the integer of $147.27.

Next, oil prices took another dramatic development that even Rogers did not expect.

In the following five months, oil prices fell from a historical high of $5 to $147, performing an extreme plunge.

The reasons for the surge in oil prices can be attributed to several categories.

Supply and demand, commodity speculation brought about by quantitative easing, and the continued depreciation of the U.S. dollar.

This is the result of a combination of market fundamentals and speculation.

Among them, speculation should be the main factor.

According to relevant data, speculative transactions by financial institutions and hedge funds account for 7% of the entire market transactions.

Before the crisis, the historical high was only 4%.

The reason for the collapse in oil prices is also very simple.

The financial tsunami broke out and penetrated from the financial market into the real economy. Major developed countries are facing the most severe economic recession since World War II, and the economic growth of developing countries has also slowed down significantly.

As the economy slows down, the demand for crude oil also decreases.

Let’s look at gold.

The trend of gold this year generally shows a sloping "N" shape, that is, high on both ends and low in the middle.

In January, gold opened at $1 an ounce.

In just one month, the price exceeded the highest price since 1980 - US$850 per ounce.

Within a month, the high was repeatedly refreshed, setting a new high on March 3: US$17 per ounce.

After that, the price entered into adjustment and fluctuated frequently.

Eight months later, gold fell back to US$680 per ounce. After stabilizing, it climbed steadily, reaching as high as US$881 per ounce again at the end of the year.

Generally speaking, this year's trend is dominated by wide fluctuations, with a difference of 34% between high and low points. Such wide fluctuations are rare in history.

This kind of market activity with ups and downs and strong speculation is most suitable for fishing in troubled waters with a B.

It’s not that the fluctuation range is large and suitable for arbitrage, but that there are many trading objects and hot money.

The high frequency of hand-changing transactions brings green and beautiful knives flowing in like water.

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like