Chapter 49 The correct way to open short-term
As he spoke, Li Feng put the coupon in his hand into Yao Jiu's hand.
When Yao Jiu heard this, his eyes lit up instantly and he said to himself:
"Brother Li, you've really woken me up, haven't you? Right now, the hottest thing online is internet finance. There are dozens of well-known companies. I heard the boss say he's going to open a few more accounts and build a few more websites to conduct business. If things keep going like this, there won't be at least hundreds or thousands of companies online. What company wouldn't offer a big bonus when it opens? And what website would have to offer benefits to recruit people when it opens?"
"One family can make tens or hundreds of yuan, and if hundreds of families can make thousands or even tens of thousands of yuan... If all friends and family join in, that's tens or even hundreds of thousands of yuan..."
"High! High! High!"
Yao Jiu found a way to make money, so he stopped talking, picked up the camera and ran back.
Someone took the lead, and the others followed suit.
Gan Yitong watched everyone leave and smiled happily in his heart.
This money was not wasted.
Let’s not talk about whether the article will be published or not, let’s just say that it was a sudden idea to organize this stock trading competition, which is really the finishing touch.
Just by collaborating with the Changzheng Securities branch next door, it will definitely become popular throughout the entire B city.
By then, with high exposure, won’t money come in like water?
Thinking of this, Gan Yitong walked into the Changzheng Securities branch next door.
It was still early, so Li Feng wandered around for a while and went straight back to the trading room. When he pushed the door open, he saw Lin Menghan sitting quietly on the sofa waiting.
"Are you going to participate in the stock trading competition with Liu Bin?" Lin Menghan asked.
"good."
"I heard that Liu Bin is very good at short-term trading... Are you sure?" Lin Menghan bit her red lips lightly, a little worried.
"You don't have confidence in me?" Li Feng sat in front of the computer and turned it on.
"You should have no problem with long-term investment. I'm just worried that you won't be able to do well in the short term. I heard that this real-time trading competition will last for two years." Lin Menghan explained.
"There are long-term strategies, and there are short-term strategies," Li Feng said as he opened the trading software. "Well, I'll show you how to trade short-term, so you don't have to frown every day and age a few years."
"How to trade? Didn't you say that short-term trading is a dead end?" Lin Menghan was puzzled.
Li Feng listened, smiled and said:
"You heard me wrong. I meant that pure technical speculation is a dead end. Graphics and images are just auxiliary tools. The key to speculation lies in the game."
"It just so happens that I suddenly had some epiphany today, so I'll demonstrate it to you."
“This stock.”
As he spoke, Li Feng pulled up the K-line chart of Shanghai Steel Union.
"Why it?" Lin Menghan was puzzled.
"Because it's an internet finance concept stock," Li Feng explained, "Look at its pattern. It's recently bottomed out with heavy volume, which indicates that capital is flowing in."
"We buy it because we're betting that with the continued introduction of internet finance, especially Yu'e Bao and P2P, the concept will become increasingly popular, attracting more and more retail investors."
"These retail investors are our counterparties."
“The essence of short-term trading is to find your counterparty, the buyer.”
"You must remember that short-term trading is all about harvesting each other. If you are a small retail investor, you can only harvest dumber and more foolish retail investors, rather than guessing charts and looking at charts all day long in the delusion of harvesting the market makers."
"Also, what I mean by short-term trading is not the kind of short-term trading that Liu Bin does several times a day or dozens of times over several months. The short-term trading I'm talking about is generally more than a month, about six months."
"Pure intraday short-term trading is insane and a form of shamanic manipulation. It's like competing with quantitative robots for a living. You can't win, and even if you can, one day, someone will smash your job to pieces."
"However, even if you find the right buyer, the success rate of short-term operations is no higher than 60%. Therefore, you must keep a light position and operate with a playful attitude. A single position is enough. A complete loss will only lose 10% of your total assets, and a halving will only lose 5% of your total assets..."
As he spoke, Li Feng actually pointed out and bought a layer of warehouse, which left Lin Menghan stunned.
"Is it, that simple?" she asked with a stutter.
"It's that simple," Li Feng said. "You can throw away all the technical analysis books in your head, including the ones at home. Just remember the key point of finding a good buyer and an opponent. The rest is not important."
"Remember, technical charts are just tools for describing past and present stock trends. I often say this, and I use them frequently and they are very useful, but they cannot predict future trends."
"It's just like buying lottery tickets. Every lottery booth has a sign hanging on the wall with the winning numbers for each draw. Many people buy lottery tickets based on some pattern, but can they really win?"
"Yes! But it's all just guesswork."
"Just like stocks, you might be able to win by chance, but in the long run, if your approach is wrong, it's like buying a lottery ticket, you're bound to lose money."
After a pause, Li Feng continued:
"On the contrary, value investing has a very long investment cycle, ranging from a few months to several years, but the certainty is much stronger than short-term investment. With the blessing of compound interest, long-term performance will definitely exceed short-term investment."
"Short-term trading, after all, is a game of capital fighting."
“Even if you have a good record and trade dozens or even hundreds of times a year, the transaction fees alone are a considerable expense.”
"Someone once calculated that after working hard day and night for a year studying short-term trading, they still lost money when they calculated their accounts at the end of the year."
"Pull out the delivery note and study it again. Damn, the whole thing has already been paid for the handling fee!"
"Not to mention, short-term trading means fighting against the market makers. The dangers involved are beyond words."
After listening to this, Lin Menghan also stretched out her slender jade fingers and wanted to buy it.
Li Feng stopped her and said, "Don't buy it."
"Why?" Lin Menghan asked with a frown.
"Because you have a large amount of capital, you need to be stable. I have a small amount of capital, so on the basis of stability, I can and should take a gamble." Li Feng explained.
Lin Menghan pondered, "So, if you have a large amount of capital, you're suitable for value investing, and if you have a small amount of capital, you have to take a gamble? Isn't that too unfair?"
"Where in the world is there such a thing as fairness? In the financial market, weakness is the original sin. If you have little capital and don't fight, even if you double your money, it won't change anything. Therefore, the dealers have seized on the psychology of retail investors and created various traps to harvest retail investors, and it works every time," Li Feng sighed.
"It's just like the ecosystem on the African savannah. When the dry season arrives, the wildebeests start migrating, and countless lions and hyenas wait in wait to hunt where they must pass..."
After a pause, Li Feng changed the subject and said seriously:
"Value investing isn't a surefire method. There are all sorts of traps and hidden tricks that need to be carefully discerned."
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