Chapter 19 Opportunities to Launch Market Trends
"Um?"
Li Feng was stunned, stopped and asked, "What stocks?"
"Qinling Cement!" Zhao Xinyue said happily.
As she spoke, she pulled Li Feng to the table, pointed at the computer screen, and said:
"It's this stock. Didn't you say before that you only invest in ST stocks? I spent an entire night researching and happened to find this stock."
Li Feng nodded.
Betting on ST restructuring was a strategy I used before.
Ultimately, it is a kind of institutional arbitrage.
Due to special reasons, shell resources in the stock market are extremely precious, ranging from tens of millions to hundreds of millions of yuan.
Therefore, even if a stock is ST, it is difficult to delist.
This is because major shareholders will not sit idly by and watch their wealth evaporate, and will definitely use various methods to remove the hat.
The simplest way is to increase revenue and reduce expenditure, and to increase performance by reducing staff.
The next simplest thing is to take a financial bath and start a new life.
If the first two methods don’t work, then sell the shell to cash out.
This is a little more complicated.
However, the big players outside the market will not mind the trouble, because once a backdoor listing is completed, the profits will be tens of billions or hundreds of billions, which far exceeds the tens of millions or hundreds of millions of yuan required to buy the shell.
For this reason, ST restructuring events are emerging one after another in the stock market, and there is even an ST sector, which also gave rise to the ST strategy implemented by Li Feng.
"Qinling Cement has only had two daily limit increases after being delisted, which is a bit less than other ST stocks that have been delisted. And you see, the market fell below 2,000 points today, but this stock pulled out a big positive line, rising by 5.78%. There must be major players involved." Zhao Xinyue analyzed.
"So how much do you plan to buy? When will you buy it? When will you sell it?"
Li Feng raised his head and asked with a smile.
"This..." Zhao Xinyue hesitated, not knowing how to answer for a moment.
After a brief pause, she tentatively asked, "Then, then why don't you buy less?"
Li Feng shook his head and said, "The stock market is not a vegetable market. If you haven't thought about the above three questions, don't buy a single share. Otherwise, you will become the main force's leeks and be harvested without knowing it."
Zhao Xinyue recovered and asked, "Then what do you say we should do?"
Li Feng stared at the K-line chart of Qinling Cement and analyzed:
"Stock trading is all about human nature. Since we've decided to buy this stock and play along with the market maker, we need to carefully analyze the market maker's psychology."
"From the K-line chart, it seems like it shouldn't be falling, which shows that there is indeed a major player. Generally speaking, these restructuring stocks have small market capitalizations and are not well-informed, so they are all controlled by a single dealer, resulting in sharp trends and a desire for quick returns."
"But now you see, it keeps going up and down, and it's always hovering around 3.5 yuan. Why is that?"
Li Feng stopped and deliberately stopped talking.
Zhao Xinyue was listening with great interest, and she was so anxious that she wanted to reach out and twist it.
Li Feng quickly continued, "There are only two reasons. First, the dealer's funds are insufficient. Second, the dealer's chips are insufficient."
"However, this stock has just been delisted, and the market maker has been planning this for a long time. It's impossible that there is not enough funds. So there is only one possibility left: there are not enough chips!"
"The volatility these past few days is just a market shakeout."
"Once we've driven away those weak-willed small retail investors, leaving only the strong-willed ones, the market makers will have enough chips and their costs will be lowered. More importantly, it will be easier to push up the price!"
"It only takes an opportunity!"
"What opportunity?" Zhao Xinyue asked.
She had never heard of the inside story of the banker's manipulation before. When she heard what Li Feng said, her eyes widened unconsciously and her mouth opened slightly, she was very surprised.
The market maker is a mysterious existence in the stock market.
It seems to be everywhere, yet it seems to be nowhere to be found.
It makes retail investors love and hate it.
Because, without a market maker, the stock market will have no vitality, let alone making profits.
However, if there is a dealer and you have to fight against the dealer, one may suffer losses if you are not careful.
The reason why Li Feng knows the inside story of the banker so clearly.
This is mainly because he has worked in the S City Metropolitan Daily for many years and interviewed many practitioners.
City S is a famous financial city.
Inside, there are countless financial tycoons, some from overseas, some from the North, and some from Hong Kong. There are good and bad people mixed together, and there are many factions.
Sometimes, these financial giants will conspire together, but more often, they fight each other in the stock market.
The winner leaves with a smile, while the loser leaves with nothing, becoming penniless and looking forward to making a comeback.
Thinking of these past events, Li Feng couldn't help but think of the bizarre car accident again.
Suddenly, his expression turned serious.
"Feng, what are you thinking about? Stop keeping me in suspense and tell me."
Zhao Xinyue shook his arm, bringing him back to reality.
"Where were we talking about?" Li Feng tried hard to get his thoughts back.
"Speaking of the opportunity to launch the market." Zhao Xinyue reminded.
"Oh, this opportunity is very complicated. Sometimes it's a company announcement, sometimes it's just a rumor, and sometimes it just depends on the trader's mood."
"Feeling?"
"That's right, build up your position, look for good days, and push it up directly," Li Feng said, "One big bullish candle, and thousands of troops will come to meet you!"
"As long as the stock price keeps going strong, there's nothing to worry about. Retail investors will naturally share all the good news, post it on forums, and spread it to their friends and family. Countless retail investors will then flock in and buy, and buy more!"
"Then, the butcher's knife will fall!"
As Li Feng spoke, he used one hand as a knife and chopped the table with a loud "clang".
Zhao Xinyue broke out in a cold sweat after hearing this.
If retail investors do not run fast enough and are trapped at the top of the mountain by the market makers, then they will be helpless.
At the mercy of others.
"Then, what should we do?" Zhao Xinyue was at a loss for a moment.
She was a new stock investor and originally thought that she could just follow the map, find a good stock, and make money by buying it. She never imagined that she would have to consider so many things.
Li Feng pondered for a moment and said, "Let's wait a little longer for this ticket."
"The market is going to fall below 2,000 points, and the market makers will definitely take advantage of the opportunity to conduct a final shakeout."
"Still waiting?" Zhao Xinyue seemed a little impatient.
Li Feng glanced at her and said with a smile, "A bit anxious? Then buy 100 shares first, observe, and also control your hands and temper your mind."
"Well, I'll open an account later and buy 100 shares."
After Zhao Xinyue finished speaking, she returned to the kitchen and started preparing breakfast.
Li Feng then went to wash up.
Soon, two egg breakfast pancakes came out of the oven.
One of them opened another can of milk, ate and chatted, having a great time.
After dinner, it was just half past eight, and Zhao Xinyue was anxious to open an account, so she urged Li Feng to change clothes.
Li Feng was still wearing the same suit. Zhao Xinyue put on some light makeup, put on some jeans, and went out with Li Feng's arm in arm.
Go straight to the Changzheng Securities branch in the Financial Pedestrian Street in the city center.
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