Chapter 43 The Most Dangerous Moment in the Stock Market
"Who?"
Li Feng stood up and opened the door, only to find Lin Menghan arriving without an appointment.
Today, she tied her hair into a ponytail, carried a backpack, wore a small down jacket, and paired it with a pair of slim jeans. She looked capable and generous, which made people's eyes bright.
"Reporter Lin...what's going on?"
Li Feng couldn't help but frown when he saw Lin Menghan.
Ever since what happened years ago, he really didn't want to meet her again.
"Are you not welcome? I'm here to learn stock trading from you. You promised me that, so you can't go back on your word."
Lin Menghan stood outside the door, pursed her red lips, and said happily to Zhao Xinyue,
"Xinyue, my dad heard that I wanted to invest in stocks, so he bought me a laptop. Here..."
As she spoke, she walked into the room, opened her backpack, took out a red laptop and placed it on the computer desk.
"drop--"
The computer turned on and automatically started the Changzheng Securities Trading Software.
Li Feng closed the door, sat aside, and looked at Lin Menghan coldly.
I don’t know what this witch is up to.
Lin Menghan and Zhao Xinyue were whispering to each other, not knowing what was going on.
Suddenly, Zhao Xinyue stood up and called out, "Li Feng, come here quickly. You have to teach Menghan how to trade stocks. You know? Her father gave her one million to trade stocks. You can't let her lose it."
One million?
One million is not a small amount, especially for the Lin family, whose business has been bad recently.
Li Feng looked at Lin Menghan with a puzzled look on his face.
Lin Menghan quietly turned sideways.
She obtained this one million yuan for stock trading by threatening her father with her resignation as a bargaining chip, with the condition that the loss could not exceed 10% and that the stock account had to be her own.
Seeing Lin Feng's lack of interest, Zhao Xinyue got anxious and walked over to him, pulling him and saying, "Come here quickly. One million, can you help me make a decision?"
"Besides, Menghan also said that if there's a loss, you won't be held responsible, and if there's a profit, she'll give you 50%!"
Zhao Xinyue's face flushed with excitement.
One million is an astronomical figure for her.
If I calculate based on my own salary, even if I don’t eat or drink, I will still have to struggle for more than 30 years.
Not to mention, if you make money from stock trading, you can get a share of the profits.
If I could catch the same opportunity as last year once or twice again and earn 50% or 30%, that would be hundreds of thousands or even tens of thousands of yuan in commission!
It is equivalent to several years' salary.
When Zhao Xinyue thought of this, she couldn't help but feel suffocated.
Li Feng couldn't persuade her, so he walked over and looked from afar. There was indeed a million yuan in capital in the capital account of the Changzheng Securities Trading Software.
Lin Menghan stood with her back straight and her head slightly raised, seeming a little proud.
Li Feng looked at her face and said calmly, "Reporter Lin, it's fine for you to come and learn how to invest in stocks from me, but we have to agree on three rules."
"Which three chapters?" Lin Menghan asked.
"First, avoid suspicion. Xinyue is my girlfriend, and you can only come to my house when she's home from get off work. Second, let's avoid suspicion. We should only talk about stocks, nothing else. Third, I don't want your commission."
"good!"
As if she had expected it, Lin Menghan agreed very readily.
"The market is open. Let's take a look at the market first. We can talk about this another day."
Lin Menghan changed the subject and lightly tapped the Shanghai Composite Index K-line chart.
Today, the market volume shrank significantly, with only a few billion transactions at the opening. Based on this number, the total transaction volume for the day may fall below 100 billion yuan.
It is not easy to be optimistic about the future market.
"Reporter Lin, how do you plan to use this one million yuan?" Li Feng went straight to the point.
No matter what, since I had promised to teach her how to trade stocks, I had to take responsibility.
After all, one million yuan is not a small amount.
Li Feng is not that kind of irresponsible man.
What you say and what you do counts, and every word you say counts.
Lin Menghan thought for a moment and said, "I plan to follow your investment philosophy and conduct value investing in a bear market. I will buy all of Kweichow Moutai and wait for the flowers to bloom."
"Wrong, absolutely wrong." Li Feng retorted.
"Why?"
Lin Menghan frowned and asked, "Buying Kweichow Moutai, wasn't that your investment strategy set before the New Year? I'm following your strategy now, what's wrong?"
Li Feng stood up and said seriously, "The essence of value investing is to buy something worth one yuan for 40 cents. Kweichow Moutai is good, but the current price is still a bit expensive."
"In my value stock selection criteria, I will not even consider stocks with a PE ratio higher than 15."
Lin Menghan was unconvinced and pulled up Kweichow Moutai's PE ratio, saying, "Kweichow Moutai's PE ratio is a little over 14 times right now. Doesn't that just meet your stock selection criteria?"
Li Feng explained: "Now is the most dangerous moment in the stock market, you have to be a little more greedy."
"The most dangerous moment?"
Zhao Xinyue was listening intently and couldn't help but ask.
"good,"
Li Feng continued, "The most dangerous moment in the stock market is the end of a market cycle, like the super bull market from 2005 to 2007. The market plummeted from 6124 points to 1664 points in just over a year, a 72% drop! Many stocks have fallen to a fraction of their value. China Shipbuilding, once a major bull stock, plummeted from 300 yuan to around 30 yuan; Yunnan Copper plummeted from 98 yuan to 7 yuan, a 96% drop!"
"When the nest is overturned, all the eggs are broken. In this period of general decline and sharp drop, no company's stock will be spared. If you rashly enter the market at this time, you will be making wedding clothes for others and taking over the market for others."
"And now, the eating market has just ended, it is the end of a round of market, and a large-scale adjustment is underway."
Zhao Xinyue understood immediately and said thoughtfully, "You mean, we still have to wait?"
"How long will it take this time?"
Lin Menghan looked at the 1 million yuan in her account and felt so itchy that she could hardly control herself.
"How long do you need to wait? I suggest you take a look at this bet." Li Feng said, lightly clicking on the computer and opening a post in the Lingtong Value Forum.
Zhao Xinyue and Lin Menghan both looked over and sighed in unison, "A naked bet?!"
However, it was a bet made by Mr. Yang Tao, a well-known investor in the investment industry, and Mr. Dong Zhen, another famous fund manager.
The two parties agreed that if Kweichow Moutai falls below 100 yuan.
Mr. Dong Zhen ran naked for 30 minutes.
Under the post, stock investors exchanged sharp words with each other, and bulls and bears faced off, with no one willing to give in. There were already hundreds of messages.
Li Feng pointed to this post and analyzed:
"Both investment experts are very skilled. Mr. Yang Tao represents the bears in the market and is bearish on Kweichow Moutai. The reasons are well known to everyone. Mr. Dong Zhen represents the bulls in the market and is bullish on Kweichow Moutai. The reason is that after adjustments, Kweichow Moutai's consumption upgrade can make up for the market share lost to the three official consumptions."
"A share price of 100 yuan is the agreed-upon standard for the bet, which shows that there is a huge disagreement between the bulls and bears at 100 yuan for Kweichow Moutai, and it is also an important support point."
After a pause, Li Feng raised his head, looked at Lin Menghan, and said, "I've analyzed before that the principle of integers must be broken, and it also applies here."
"It's a bear market now. If the bears gain the upper hand, Kweichow Moutai will definitely fall below the 100 yuan mark. If the bulls gain the upper hand, they will also break through the psychological level of 100 yuan to collect enough chips to go long."
"So, 100 yuan is a point that must be broken."
"Break 100 yuan?" Lin Menghan swallowed and took a look at the K-line.
If Kweichow Moutai falls below 100 yuan, it will have to fall another 20 yuan from its current price, or 16%.
——
As one of the witnesses at the Lingtong Value Forum that year, I would like to pay tribute to Mr. Dong Baozhen with this chapter.
And, I miss the now closed Lingtong Value Forum infinitely.
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