Chapter 18: The hidden rules of the stock market: eating
Li Feng emphasized:
"If there is no opportunity, we wait. If the opportunity is not good, we continue to wait. If the main force does not pull, we can still wait."
"The main players are different. The top players come with a mission and have to do it even if they don't want to. The second-tier players, such as those funds and institutions, have performance requirements and have to do it. There are also some large speculators and giant retail investors who occupy a certain stock, either manipulating the market and stirring up trouble, or quietly waiting, like the silent crocodile, thirsty for blood..."
Li Feng told the story slowly and Zhao Xinyue frowned, feeling confused and unable to understand what he was saying.
After a long while, she finally figured it out and continued to ask, "So, how do you tell if a stock has a major player?"
"Xinyue, you asked a good question!" Li Feng became interested and continued,
"The simplest way to tell whether a stock has a major player is to see if it goes against the trend. For example, if the market keeps falling, it won't fall as it should. Or, if the market is booming, it won't rise as it should."
"This shows that there is an invisible hand controlling the stock market."
"As for its purpose, that's much more intriguing."
"Sometimes it's about distributing chips, sometimes it's about accumulating chips at the bottom. This requires specific analysis of specific issues."
Zhao Xinyue nodded, seeming to understand, and then pointed at the laptop screen and said, "In other words, the main force of Minsheng Bank is now accumulating shares at the bottom?"
"Yes and no." Li Feng said with a smile.
Zhao Xinyue said unhappily, "Stop keeping us in suspense and speak human language."
Li Feng continued, "If I say yes, it's because Shi Yuzhu, who keeps increasing his holdings, can be considered one of the main investors. If I say no, it's because I don't have any backers, nor do I have the ability to predict the future, and I can't be 100% sure that there are other major investors involved."
"Then why do you dare to buy heavily?" Zhao Xinyue asked puzzledly.
“Where in the world is there a place that is 100% guaranteed to make money?”
Li Feng sighed, "It would be icing on the cake if other major players intervened. If not, it wouldn't matter, because I predict that after the index falls below 2000 points, there will be a wave of profit-making market. At that time, even if there is no one to support it, as long as the index rises, Minsheng Bank, as one of the banking sectors, will have a steady stream of funds passively buying and supporting its rise!"
"You see, by then it will have to rise, and it will be difficult for me not to make money."
"Show off."
Zhao Xinyue said this, but she felt at ease in her heart.
Suddenly, she thought of something and asked, "Tell me, what is the eating market?"
Li Feng explained: "Look, the stock market has retail investors, large investors, speculative investors, and various institutions. Doesn't it look like an ecosystem?"
Zhao Xinyue was stunned when she heard this. She had never thought that the stock market could be compared in this way.
Li Feng did not elaborate and continued:
"In this dynamic system, everyone has to eat. Look at this year, from the beginning of the year to the end, only a few ST restructuring stocks are active, and only a few market makers have made a profit."
"Some of the other major funds are stuck in the stocks, some have escaped early and are crying out for food. At this moment, they urgently need to harvest a wave of leeks, change jobs, or replenish their blood."
"Secondly, with the index falling below 2,000 points, large-cap stocks, especially financial stocks, have reached the bottom of their decline. Downward movement is limited, while upward movement is unlimited, creating the conditions for a market rally."
"Most importantly, this is the winter sowing season..."
"What? Winter sowing? Wheat?"
Zhao Xinyue listened carefully, and as she listened, she couldn't help laughing.
Li Feng listened and scolded: "Don't interrupt, continue listening..."
"It's been a tradition for years. You can check it out. In the first two months of the year, banks issue billions of dollars in loans. For stock market tycoons, this is a long-awaited fresh flow of money, prey to be glimpsed, and leeks to be harvested..."
"It's a good time to start the market and hunt."
“Hence, there is the unspoken rule in the stock market that sow in winter and harvest in spring.”
The more Zhao Xinyue listened, the more mysterious it became. She couldn't help but ask, "Feng, is it true?"
"Really? If you don't believe me, go check it out. This was formed by policies and developed by the stock market. I didn't make it up." Li Feng said solemnly.
"So, we have to sell it in the spring?" Zhao Xinyue understood immediately.
"That's right, let's sell it after the New Year!" Li Feng thought for a while and said.
"Why?" Zhao Xinyue was puzzled again.
"Because once the market starts to develop, retail investors will inevitably rush in with hopes of a bull market, causing the index to soar. After the Spring Festival holiday, the market will definitely be no worse after the New Year. Now is the time to sell."
"Oh, by the way, I'll write about this topic in this issue of my stock review."
Li Feng suddenly remembered that he had not written this week's stock review yet.
Zhao Xinyue was still not satisfied and asked, "Aren't you afraid that if you write it down and the main force sees it, it won't work?"
Li Feng listened and laughed, "Forget about the main players, just talk about retail investors. After reading my stock review, how many people can believe it?"
"Tell me the truth, do you believe it now?"
"This..." Zhao Xinyue hesitated, asked herself, and said, "I half believe it, half doubt it."
"If you are half-believing and half-doubting, then the others will be half-believing and half-doubting at best." Li Feng smiled and typed out the title of the manuscript.
The dining boom is expected to return.
Then I followed my thoughts carefully and wrote slowly.
Zhao Xinyue sat next to him and patiently accompanied him for a while, then went straight to the kitchen to tinker with it.
After a while, two bowls of tomato and egg noodles were brought out.
"Eat something?" she asked.
Li Feng had just finished writing, so he sent the manuscript and closed his laptop. He said, "I'm hungry, let's eat together."
It was already past half past ten when the two finished their meal.
Li Feng looked at the wall clock, stood up and said with a smile:
"Xinyue, it's time to go to bed. You still have work tomorrow..."
Zhao Xinyue blushed and pushed him into the room, saying, "You go to bed first. I'm on shift change, so I'll take a break for the next two days. I'll think about the stock market for a while."
After saying that, she sat down at the table and carefully observed the stock market trends.
Li Feng looked at it from a distance, pondered for a moment, and said, "Xinyue, since you are so concerned, I will build a computer. From now on, we will each have a computer and check the market together."
"Yeah." Zhao Xinyue was watching intently and agreed softly.
Li Feng didn't take it seriously. He went back to his room, lay on the bed, opened JD.com, and started buying computer accessories.
Li Feng is a computer geek on the university campus, so he naturally knows everything about computer accessories.
The phone swiped gently.
The CPU, motherboard, hard drive, memory, chassis, power supply, etc. were put into the shopping cart one by one.
A total of 5,200 yuan.
The configuration is okay.
One-click payment, delivery tomorrow.
After buying the computer, it was already past 11 o'clock, and I could still hear the sound of keyboard typing coming from the living room.
This girl is really thoughtful.
As he was thinking about this, Li Feng fell into a deep sleep.
I don’t know if it was because of practicing Tai Chi or because he was a little tired from dancing tango with Lin Menghan, but Li Feng fell into a deep sleep and woke up at noon.
He just walked into the bathroom to wash up.
Zhao Xinyue came over with two panda eyes and said with a look of surprise:
"Li Feng, I also found a good stock!"
——
I would like to use this chapter to commemorate our country’s unique eating market (which is still valid now).
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