Chapter 51: The hidden rules of the stock market: Don’t hang out with the majority
Under this negative rumor, the market slowly slid from 2100 points to around 2000 points.
Finally, on January 8, 2014,
Kweichow Moutai suddenly broke through 90 yuan and reached 82 yuan.
The news reached Lin Yiyun's ears. Looking at the loss in his stock account, he couldn't help but feel a headache. He shouted, "Menghan, look at what crappy stocks you bought! They're already 82 yuan! You bought them at 98 yuan, and then 89 yuan. Now you've lost more than ten yuan per share! I said the loss can't exceed 10%. I'm going to sell out!"
"No! Dad, this is the bottom, we can't clear the position! If we do, we will suffer a real loss." Upon hearing this, Lin Menghan hurried over to stop him.
"If I don't clear my inventory, what if I lose more money? If it drops to 70 yuan, or 60 yuan? Ever since you bought the stocks, I'm running out of cash. No, I have to sell them and buy some wine."
"Dad, how could that be? Right now, its dividend yield is over 5%. Just think of it as putting it in the bank. No, just think of it as buying a batch of Kweichow Moutai liquor and hiding it in the basement. Wait a few years, and it will definitely appreciate in value."
"Nonsense! I know hoarding alcohol can make money, but how can you increase the value of something you can't see or touch? Let me tell you, this is one million yuan, and you lost over a hundred thousand. This is all your dowry. If you lose it all, I wonder how you'll get married?"
"Then I won't get married!"
"You? You! You're going to piss me off to death! Tell me, are you attracted to that Li Feng? Sigh... I've told you so many times, that guy has a girlfriend, and they're in a good relationship. You shouldn't get involved and become the third party. It's not like you're unwanted. With so many suitors, who isn't better than that Li Feng? You're such a stubborn person."
"I'm going to get involved, even if it means death. I don't want you to interfere!"
"You don't want me to take care of you? From childhood to adulthood, I've taken care of everything for you. What you eat, what you wear, what you use, including where you live now, aren't they all taken care of by me? You don't listen to the advice of the elderly, and you're about to suffer the consequences. Go ahead and get involved. When you suffer the consequences and gain nothing, you'll regret it."
"My regret is my business, not yours. I am willing."
"You, you, are you willing? Am I willing?"
"I'm happy with it. I don't care about him. I'll do whatever I want!" After saying that, Lin Menghan slammed the door and left crying.
"You...you...you..." Lin Yiyun was so angry that he stood up and looked at the door, his hands shaking all the time.
Inside the house, Lin's mother rushed over after hearing the noise and tried to persuade him: "Stop arguing. What are you arguing about? It's just 1 million. If you lose the money, we can earn it again. If you get sick from anger, how are we going to live?"
"Your health is more important. Calm down, calm down. You know Menghan's temper. Let her go on. When she hits a wall, she'll know when to turn back..."
"Come, sit down, sit down first..."
Lin Yiyun slowly sat down on the sofa and murmured, "Well, whatever, whatever, a girl can't be kept at home when she grows up, do whatever you want..."
But Lin Menghan ran out of the community crying, wiped away her tears, and was also very worried about the trend of Kweichow Moutai.
In the end, can its stock price still go up?
She had been very confident before, but now she was a little hesitant.
I couldn't help but take a taxi and go straight to the trading room of Hengtong Financial Company.
"Huh? Menghan, why are you crying?"
Li Feng asked when he saw Lin Menghan coming in with red eyes.
"I'm not crying. Why would I cry?" Lin Menghan forced a smile and asked, "Did you see the negative impact of refinancing? Kweichow Moutai has fallen to over 80 yuan. Sigh..."
"Are you afraid of losing money?" Li Feng teased.
"Yes, a little bit..." Lin Menghan looked at her account. She had lost 170,000 yuan, which was equivalent to her three years' salary. If she said she didn't feel sad, she would be lying.
Moreover, she really has no idea whether the price will rise or fall in the future.
She felt very scared, as if she was walking on a night road, lost and confused, or about to fall into an abyss.
Li Feng consoled him, "Let's talk about the restart of the IPO first. This isn't bad news, but good news."
"What did you say?"
Lin Menghan widened her eyes, her face full of disbelief.
Whether on the forum or among the stock friends around me, I have never seen anyone say that this news is good.
Everyone knows that IPOs suck the blood out of the stock market. How can it be said to be a good thing?
Li Feng saw her expression and knew that her understanding was still not in place, so he explained:
“In the stock market, never stand with the majority. That is very dangerous.”
Experienced stock investors all know that in the stock market, only a few people win, and only one out of ten people can make a profit.
This is because, whether in life or in the stock market, most people are blindly obedient mobs, following the tide of various information, just like the herds of wildebeest migrating on the African savannah.
Where there are many prey, there are also the most hunters.
In the stock market, where retail investors gather, it is also where the sickle harvests the most harshly and ruthlessly.
You need to be extremely careful not to be with the majority, so as not to be harvested by the sickle.
After a pause, Li Feng continued:
"The resumption of IPOs, which had been frozen for several years, had an impact on the market. The higher-ups couldn't have been unaware of it, but they just tried it out anyway..."
"What does this mean? It means the higher-ups are confident and have a backup plan. As the saying goes, don't take on a job you don't have the skills to do. You must clearly understand your position. The people above you are far smarter than us, and they have far more tools at their disposal."
"This shows that we need to pay more attention to the stock market and restore its financing function. Various favorable policies will definitely be introduced in the future..."
"As an old stock investor, I have already smelled the wind of a bull market."
Lin Menghan was stunned and asked, "Bull market? How did you know?"
"Feeling." Li Feng replied with a mysterious smile.
"Feeling?" Lin Menghan didn't believe it.
"I once told you about the bull-bear cycle in the stock market. Now it seems like the time is almost up and the valuations are almost there. It all depends on when the policies catch up..." Li Feng explained.
"As for investing in Kweichow Moutai, or any other investment in the stock market, we must keep a close eye on our counterparties. Most retail investors and funds have already fled, and our largest counterparty is this company. If the company is fine, then this investment is fine."
"It's normal for stock prices to go up and down."
"Just like walking a dog, the stock price sometimes runs ahead and sometimes runs behind, but in the end it all depends on the leash we hold it with."
"Really, really?" Lin Menghan put down her phone and stopped looking at the jumping K-line. She felt a lot more relaxed.
"Absolutely." Li Feng said.
Lin Menghan was about to say something.
“Dang, dang—”
The door rang.
It was Liu Ying, the sales department manager of Changzheng Securities, who walked in.
"Brother Li, good morning - beautiful lady, good morning -"
Liu Ying had her signature smile on her face.
"Hey, Miss Liu, what can I do for you today?" Li Feng put down the mouse and started talking without restraint again.
"Well, our company is striving for the indicators of margin trading and short selling, and there are gifts to be won. I see that Brother Li has not yet opened the authority. Do you want to open one?" Liu Ying walked over with a smile and handed over a flyer.
Margin trading, to put it simply, means borrowing money from a brokerage to trade stocks, or borrowing securities to short sell, which is a form of leverage.
Leverage is a double-edged sword. If used well, it is a sharp blade to kill the enemy. If used poorly, it is a murderous knife.
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