Chapter 37 Speculation is as old as the hills
"Hedge?" Lin Menghan was stunned?
She had heard of foreign exchange hedging, stock index futures hedging, and commodity futures hedging, but she had never heard of anyone calling their operations hedging.
Li Feng said: "It's mainly to hedge my trading desire."
"Stock traders, especially professional stock traders, watch the market and research stocks every day, and naturally develop a desire to trade. It's like a gambler standing around a gambling table every day. For a day or two, you can overcome it, but after a long time, you can't help but want to get in and try your luck."
"This is caused by human nature. Even gods can't change it."
"For gamblers, this isn't a big deal. But for stockholders, especially value investors, if they lose control of their trading urges and rush into the market without being prepared, they will inevitably fall prey to others and be slaughtered."
"Therefore, the best approach is to place the majority of your positions in stocks you have a good chance of winning, allowing the heavyweights to take center stage and hold them for the long term until they reach your target price. For the remaining 10% or 20% of your positions, change your trading strategy and, while maintaining your market sense and acumen, appropriately participate in investment opportunities."
"This year's opportunity should be in theme stocks, especially technology stocks and internet stocks."
"These stocks have small market capitalizations and are easy to manipulate. Furthermore, with the recent explosion of smartphones and widespread 3G applications, it's a perfect time for speculation."
Lin Menghan was still a little hesitant after hearing this and said, "Aren't you afraid of a repeat of the 2001 dot-com bubble?"
"Those tech stocks back then weren't just cut in half; many were reduced to a fraction of their value, a few cents or even collapsed. Over the years, investor education has often used that bubble as a topic to urge investors to be cautious."
Li Feng put down the melon seeds in his hand and said seriously:
"Menghan, don't underestimate the wisdom of stock investors, and don't overestimate your own judgment."
"Who among the investors entering the stock market doesn't do so with the ambition to get rich quick? They're not unaware of the dangers of the stock market; they dream of being the ultimate winner. Everyone knows hyping theme stocks is a game of pass the parcel, but once the game begins, everyone feigns ignorance, pretends to participate, and dreams of eventually exiting with a fortune, only to end up with nothing."
"Whether it was the dot-com bubble in 2001, the tulip bubble hundreds of years ago, the South Sea bubble, or the Mississippi bubble, it all followed the same pattern and process."
"It's like a game of draw-the-ladders. Everyone is scrambling to get to the house first, just gambling that when the ladder is drawn, they'll already be in the house and not on top of it."
"So, once a hot topic emerges in the market and huge amounts of funds start to push up the market, investors will certainly pretend to be unaware and rush in, fantasizing that they will eventually get out unscathed."
“That’s human nature.”
"That's why the great speculator Jesse Livermore said speculation is as old as the mountains. Why? Because human greed and fear remain unchanged even after hundreds of years. They are deeply ingrained into the human genome."
Lin Menghan was silent and thoughtful.
However, no one expected that Li Feng would analyze the stock market from a third perspective.
Stock market ecology theory, stock market seesaw theory, stock market human nature theory, I wonder from which angle Li Feng will look at the same stock market in the future.
She looked at Li Feng and felt for the first time that his eyes were full of wisdom and the pursuit that she longed for.
At this moment, Li Feng's cell phone started vibrating wildly.
"Hello, who is this?" Li Feng picked it up from the table and asked politely.
"Number one, this is number two. Please be careful these days and don't go to the vegetable market behind the hospital." The familiar yet somewhat unfamiliar voice of patient number two came from the phone.
"Why?"
"Beep, beep..." The phone hung up.
Lin Menghan listened to the general idea, thought a lot, and frowned unconsciously.
Li Feng took the phone, walked to the window and looked out.
I saw that the vegetable market downstairs was bustling with people and there were cameras everywhere. There was nothing unusual, and there would be nothing unusual.
Look at the path next to the vegetable market, it is hundreds of meters long and there is not a single camera. It is really a good place for a fight.
After thinking for a moment, Li Feng walked into the utility room, took a wrench, hid it in his sleeve, and was about to go out.
"Li Feng, don't go,"
Lin Menghan stood up and stopped him. "We can hide or call the police. Or I can contact the media to expose them, or have my dad warn Yan Liang again."
Li Feng waved his hand and said:
"No, he's already found my house. How can I hide? How long can I hide? I think Yan Liang is also a gangster. Since he has come to my house, I will talk to him according to the rules of the gang."
"Only in this way can this matter be completely resolved."
Finally, Li Feng remembered something and said, "Menghan, you stand by the window and use your phone to help record the video. We can collect evidence to prevent them from getting desperate and falsely accusing me."
Lin Menghan was worried, so she took out her phone and said, "Are you alone? How about I find a few more?"
Li Feng showed the wrench in his sleeve and said, "One person is enough."
After saying that, Li Feng patted Lin Menghan on the shoulder again and said, "Don't worry, it's a small matter."
Birds of a feather flock together.
A gangster of Yan Liang's level would not be able to find anyone powerful enough.
I have practiced Tai Chi for half a year and have a wrench to protect me, so I have nothing to worry about.
Lin Menghan nervously walked to the window and raised her cell phone to record the video.
Lin Feng walked slowly into the alley and looked into the distance.
Over there, Yan Liang appeared in front of them with two thugs, no one knew when.
"Hey, people are coming!" Yan Liang threw away the cigarette butt in his mouth and said.
"So fast? Don't mistakenly recognize the wrong person." A skinny golden-haired man who looked like a monkey asked next to him.
"Yes, that's him." Another burly man with a beer belly said, looking at the photo on his phone.
The three of them took out a baseball bat from behind and looked at Li Feng with a grin.
Li Feng was not afraid at all. He stood there quietly and looked at them.
"XXX! What are you looking at?!"
The skinny monkey felt that Li Feng's eyes were full of ridicule, so he swung the baseball bat at him.
Li Feng raised his left arm to block.
"Bang!"
The baseball bat bounced directly into the air.
The skinny monkey was stunned. Before he could react, Li Feng had already grabbed his wrist, pulled and tripped him, and he fell to the ground with blood all over his face.
"Let's go together!" Yan Liang said angrily.
The two men attacked from the left and right.
Li Feng's eyes fixed, and he slightly moved his body to the left to avoid the strong man. Then he swung his sleeve at his back, and with a "bang" sound, the strong man fell to the ground.
He covered his back and wailed.
But he was hit hard by the wrench.
Yan Liang was startled and quickly hid aside, with a look of surprise and confusion in his eyes.
After Li Feng knocked down two men, he looked at Yan Liang standing aside and slowly approached him.
There was a fierce and ruthless light in his eyes.
Yan Liang saw this and shuddered inwardly. He waved the baseball bat in his hand and retreated while saying, "Don't come over here, Li Feng. Let's talk it over nicely. Let's discuss it properly."
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