Because of the frequent trading in the futures and spot oil markets, Xing Baohua suffered some short-term losses.
This is a typical operational error, caused by insufficient margin.
If the margin is sufficient, short-term fluctuations will not be affected. Within the range, let it fluctuate freely; at worst, it will give you a range of a thousand points in a short period of time.
This lesson cost Xing Baohua over 300 million US dollars, all due to a margin call.
The loss of so much money is not the trader's fault, but his. Who told him to choose obedient traders who didn't need to use their brains?
He said to buy at that price point, and that's exactly what people bought at that price point.
The boss didn't tell them when to exit the warehouse, so they could only watch as the warehouses were liquidated.
So Xing Baohua came along. The short-term rules needed to be changed; sticking to old ways wouldn't work in the financial field.
Upon arriving in Hong Kong, I sat in the office and had a meeting with the management of Haina's marketing, investment, and information departments.
"Have you found the cause of this market surge?" Xing Baohua asked Song Lianjia from the information department.
"It is likely that the US will release a batch of strategic oil reserves into the market."
"..." Xing Baohua didn't speak, but instead looked at this person. This immediately made Song Lianjia nervous.
Realizing that his words weren't strong enough to convince Xing Baohua that the news was true, he showed Xing Baohua a report compiled by his department.
Xing Baohua flipped through several American newspapers, one of which stated that starting this December, the United States would release 60 million barrels of strategic oil reserves, some of which would be sold to its allies.
The purpose of the US releasing strategic oil reserves is generally to control oil prices.
With oil prices so low now, why are they still trying to lower them?
Of course, from an economic perspective, the explanations differ. After all, OPEC also relies on oil to make money, and which wealthy individuals and capital groups would be happy about that unless an agreement is reached?
It's clear that the US made significant concessions to keep OPEC quiet and turn a blind eye.
The underlying meaning is obvious: whoever produces oil has a higher production cost.
This has led to frequent trading in the spot oil market. This is a sudden event, and no one else is to blame.
Fortunately, the loss wasn't significant; in Xing Baohua's eyes, it was a small amount of money. But to those recent graduates who were trading, it was an enormous loss.
I was quite frightened, but that's how the financial market is. How can someone stay calm without experiencing losses?
How can someone who has never experienced a margin call know how big their heart is?
Xing Baohua didn't blame them; instead, she had a meal and sang karaoke with them to help them relax.
During the conversation, he also told them some anecdotes about his work in finance, including how he fought against the Central Bank of the United States.
“A qualified trader is not responsible for profits and losses. How much money you make has nothing to do with you, and how much money you lose has nothing to do with you either. What matters to you is the commission on each transaction. So this loss can only be borne by me. Don’t feel guilty about how much money you lost for the boss. If you really have that thought, get out of here right now.”
It was Xing Baohua's speech that gave these newcomers confidence. They felt that Xing Baohua was truly a good boss; elsewhere, losing money for your boss would be the least of your worries.
Xing Baohua returned to his villa in Hong Kong, where Zou Wenjuan said she had a surprise for him.
You don't even need to guess; you can tell just by looking at their smiling and joyful expressions.
A medical examination report from a private doctor, and an ultrasound image.
Xing Baohua couldn't help but sigh, "The descendants of the imperial physicians are truly remarkable; that million-dollar sum was definitely well spent." Not only did it bear fruit, but it also resulted in several more offspring, averaging only a little over 300,000 per child.
Tell me, is it worth it?
Xing Baohua didn't ask about the situation with Master Zhou. If there was something going on, he would definitely let her know. Anyway, she would be staying at her place tomorrow, so she could just see his reaction then.
The next day, Xing Baohua returned to the company and deposited more money into the short-term cash account, this time ensuring sufficient margin.
We should still follow the tiered plan. If there are significant short-term fluctuations, we can decisively close out our positions without consulting him, minimizing losses as much as possible. This is what is known as timely stop-loss.
Here, Xing Baohua did not ask the new traders to set an automatic stop-loss point. Instead, he asked them to have a stop-loss point in their minds as they continued to learn. If they reached their mental stop-loss point, they had to exit the market decisively. Otherwise, the longer they dragged it out, the more they would lose, and the platform might even force them to liquidate their positions.
As for the long-term ones, ignore them. While the US is suppressing oil prices, we can even make a few more long-term trades.
Xing Baohua didn't reach many conclusions during his meeting in Hong Kong. The good news is that he lost money in the short term.
I'd always heard he was making money, and I was incredibly envious. But thankfully, heaven has mercy on him, and he's lost it all.
Those who followed his lead included both short-term and long-term investors, and they couldn't get any useful information from Haina. Short-term investors lost money and exited their positions, while long-term investors remained hesitant.
The vast majority gritted their teeth, closed their positions, and left, deciding to wait and see for a while before making any further moves.
This leads to missed opportunities. When prices seem low, people sell because they lack the financial resources to wait for a rebound, but who knows when the price will stop falling.
When I came out to observe, the price went up again, so I hurriedly went back in, only to find that the price was high again when I tried to trade.
If prices drop even slightly, you'll get trapped; it's painful for anyone who does it.
Xing Baohua stayed overnight at Master Zhou's place tonight, and nothing unusual happened during that time. He even collected honey in the evening.
Well, perhaps the time isn't right. Xing Baohua doesn't think it's his fault for now; perhaps it really is just not the right time.
Xing Baohua dared not stay in Hong Kong for long. A few days later, after arranging things in Hong Kong, he hurried back to central Shandong.
My dear reader, there's more to this chapter! Please click the next page to continue reading—even more exciting content awaits!
Continue read on readnovelmtl.com
