"Dump the market!"
"Sell 5% of the stocks you have and see how the market reacts."
"Okay, boss."
"receive!"
"......"
Several traders licked their lips.
When is the most glorious moment for a trader?
That would definitely be a market crash!
Watching the stock, which was originally rising, being abruptly hammered down.
The exhilarating feeling of a waterfall plunging three thousand feet is beyond description.
However, being a short seller isn't so easy.
This includes assessments of relations between countries, national policies, the domestic situation, as well as individual stocks and sectors.
Most importantly, it's about judging human nature.
The water here is very deep, deep enough to bury a person.
There are also institutions that specialize in short selling.
For example, Muddy Water and Citron from the United States.
They typically provide short-selling information to the market by conducting analysis, due diligence, and other methods, and then issuing research reports.
This allows them to suppress stock prices and stock index futures, and profit from related stakeholders.
It can be said that behind every short-selling institution is a master of psychology.
Every word and every piece of data in their report captivated people's attention.
It makes you think that if you don't sell your stocks, they will become a pile of worthless paper.
When this mentality accounts for 60% of retail investors in listed companies.
These short-selling firms started to take action.
The method is the same as the one used by Chen Dong.
They would first borrow a large number of shares from securities firms, and then, with the help of news and research reports, drive down the price of their shares.
The stock, which was originally worth 100 yuan per share, suddenly shrank to only 20 yuan per share.
at this time.
These short-selling institutions are slowly buying back their shares.
The price difference between 100 yuan and 20 yuan is 80 yuan. After deducting various fees and interest, each share nets 70 yuan.
This is a tactic that short sellers have repeatedly used successfully.
In contrast, retail investors can only passively be exploited.
The reason is that there are no short-selling tools used by institutions.
In other words, retail investors can only buy when the price rises. If the price rises from 10 yuan to 20 yuan, the 10 yuan difference is the money earned by retail investors.
Conversely, if a stock price drops from 20 yuan to 10 yuan and a retail investor hasn't sold their shares, they will lose 50% of their principal.
That's the difference.
......
at the same time.
The Tokyo Stock Exchange was bustling with activity.
Traders and investors shouted excitedly.
"Charge! Charge forward!"
"Stay calm, hold on, we must get a foothold."
"Baka! Charge! I've staked everything on this! Charge!"
point.
point.
point.
"Ah...that's wonderful! Long live the Great Island Empire!"
"Waaaaah... Great, we've finally made it back to the station."
point.
point.
point.
When everyone thought the market index would continue to rise.
Bang!
Like a bolt from the blue.
A bucket of cold water fell from the sky, pouring over everyone's heads.
At this moment, the market situation also changed dramatically.
A large number of short positions appeared out of nowhere.
10 lots.
100 lots.
1000 lots.
In particular, these stocks are among the 50 constituent stocks of the Nikkei 255.
At the best bid price for each stock, a large number of sell orders appeared.
Warfare is based on deception!
In Chinese tactics, the most important move is to strike the snake at its vital point.
The stock market is also a financial market.
To be honest, it's no different from a battlefield.
Chen Dong deeply understood a principle: concentrate limited ammunition to launch a fatal blow against the enemy.
HK$1 billion, placed in the stock market of an island nation, is like a pebble dropped into a lake, only causing a ripple.
Moreover, Chen Dong only prepared HK$800 million for the stock market.
If they don't sell off in a concentrated manner, they probably won't even make a ripple.
But things are different now.
The ripple effects of allocating HK$800 million to 50 stocks are far more than just 1 plus 1 equals 2.
"Look, there's a large amount of money dumping shares."
"What?! Damn it, who's behind this?"
"No, please don't fall, please don't fall, you must close above the support level!"
The interior of the large apartment.
A trader suddenly looked up and said.
"Boss, other funds are also dumping shares, and the amount is huge."
The words had barely left his mouth.
The other three traders also reported what they had seen.
"Boss, some of the stocks I'm responsible for have also seen other funds dumping their shares."
"Boss, me too."
These 50 stocks represent only one-fifth of the 255 constituent stocks.
The odds of that happening are either nonexistent or incredibly coincidental.
There is only one possibility for this outcome.
Of the 255 constituent stocks, at least 200 experienced sell-offs.
In other words, Chen Dong and the trader of a large institution had the same idea.
They also chose to sell off above the target price.
certainly!
Chen Dong's ability to think of testing the market's reaction was definitely not due to his personal ability.
He knew it better than anyone else.
—The first line marks the end of this rebound.
The market index also started fluctuating around this level.
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