Li Xiaoman and Zhu Yuehua listened attentively, their eyes fixed on Chen Dong.
Chen Dong was very satisfied with their performance. He took a sip of his drink and continued:
"It is common knowledge that making money in finance is easy; doubling or even tripling one's assets in a year is a simple matter."
"However, if you don't pay attention to risk control, it's easy to lose money, and in severe cases, you might even lose everything."
"As long as the market doesn't close, we'll always have a chance to make money. But if we're not careful and don't pay attention to risk control, we might lose all our capital, which would be a huge loss."
However, Li Xiaoman also had a different opinion.
She frowned and asked directly:
"Indeed, I admit you have a point; risk is something we must always be aware of. But what does that have to do with the lucky guy you're telling us about today and with investing?"
Zhu Yuehua didn't quite understand either, so she looked straight at Chen Dong, waiting for his explanation.
Chen Dong cleared his throat, straightened his back, adjusted his sleeves, and said:
"Attention, Mr. Chen's investment class is about to begin. Risk control is certainly related to what we're talking about, and very much so."
"Stop keeping me in suspense, just tell me!" Li Xiaoman said, somewhat annoyed.
Chen Dong gave him a reassuring look and continued, "I don't know if you've ever heard this saying: Be greedy when others are fearful, and fearful when others are greedy."
"Oh, that makes a lot of sense. Who said that?" Li Xiaoman asked with interest.
"This was said by an American investor. I think his words are very appropriate in the current situation."
"Tell me quickly, tell me in detail!"
"Don't you think everyone's looking for that lucky guy to make money for them? Doesn't that show the market's greed? People have lost all fear, only greed remains. That's when we need to be fearful."
"Let me ask you a simple question. Do you believe that someone can always go against the grain and still make money when the economic environment is bad?"
Li Xiaoman, being young, still wanted to debate with Chen Dong. "What's so hard to guess? Maybe he has his own unique skill!"
Chen Dong smiled slightly.
"Heh, most people are like you, holding this kind of view."
"When three people say the same thing and everyone is praising the wonder of the boy, everyone thinks that he has a secret formula and can succeed."
"These people don't realize that they've lost a lot. They no longer trust their own judgment or their own experience, and instead entrust the safety of large sums of money entirely to others."
"Regardless of what you think, I believe that to be absolutely foolproof in the ever-changing investment market, only a god could consistently make money."
“We have so many professionals and our own institutions, but now we don’t even trust ourselves, yet we trust a subsidiary of a bank, and specifically a trader in that subsidiary who does securities business? Do you think that’s reasonable?”
Zhu Yuehua, who had been silent all along, spoke up, "Mr. Chen, I think you're absolutely right. Everyone makes mistakes! Not to mention in the ever-changing investment market, no one can be completely trusted."
Li Xiaoman also frowned, because she knew Chen Dong was right. However, now everyone was ignoring common sense and only focusing on the trader's extremely high success rate.
Zhu Yuehua nodded, "In that case, we can't act rashly. We must remain highly vigilant about this matter."
Originally, she was also in the investment and securities business, but after hearing the story of this amazing boy that everyone was talking about, she felt a little down.
This news made her feel like a failure, that she hadn't been able to find such a person, nor did she have the ability to be so successful in securities investment.
Then consider your own Kingston Securities. The securities company has just opened and is still in its early stages. Although there have been some successes and some profits have been made, the profit margin isn't that high after offsetting the gains and losses.
Barings Securities, a subsidiary of Barings Bank, was already very strong. Now that another lucky guy has emerged, everyone wants to invest there, which naturally creates competition for them, making it feel like they can't cope.
However, after hearing what Chen Dong said, it seems that this matter is not simple at all, and there must be some inside story. The threat I am under should not be that strong.
Chen Dong said, "Hehe, what inside story there is, is beyond my knowledge. After all, Barings Bank is a large company with many secrets."
"What exactly is the inside story? Barings Bank itself might not know, after all, this kind of thing involves the bank's own operations, as well as the authority and work of its subordinates."
"But we can speculate that either Barings Bank concealed the information from the outside world, or Barings Securities concealed the information, or the trader concealed or altered the information, thus making the outside world believe that their success rate and profitability were very high."
Chen Dong cannot disclose details about Barings Bank's eventual collapse, which was ultimately brought down by a trader named Nick Leeson.
However, he could give them a hint, which would also provide him with some basis for making this judgment.
"In short, there's definitely something wrong here. For the sake of my funds, I will absolutely not cooperate with Barings Securities."
"I also advise HSBC or Kingston Securities not to cooperate with Barings Securities."
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