Chapter 61: In a bull market, you must keep a clear mind
"Well, I'm a new investor, too," Zhao Xinyue pondered for a moment and said, "If it were me, I'd definitely buy those stocks that are cheap, have strong concepts, and are rising quickly."
"In a bull market, making quick money is king."
Li Feng affirmed, "Yes, new stock investors are all very smart. Some of them know that buying these stocks is a fool's errand, but they just can't resist the desire to make a quick buck. This is human nature and there's nothing wrong with that."
"In a bull market, greater foolishness is not a problem, nor is it a problem. As long as the stock market continues to rise and wealth is continuously created, there will naturally be a steady flow of funds, further pushing up stock prices."
"Today I take your order, tomorrow you take mine, we take each other's orders, we curse each other, we go long and short against each other, it's all normal..."
Zhao Xinyue found what Li Feng said so interesting that she couldn't help but cover her mouth and giggle.
Lin Menghan, who was standing next to him, listened thoughtfully and remained silent.
Li Feng continued:
"I once said that in a bull market, veteran investors can't outperform new investors. This is because veteran investors have been in a bear market for too long and their minds are not open, so they fall behind new investors."
"So, from now on, I will not move the margin positions in my account. I will take out 500,000 yuan of the remaining 2 million yuan and let Xinyue and Menghan handle it."
"I only ask one thing. Imagine yourself as a new stock investor. Which stocks are the most eye-catching, have the most compelling concepts, and are the lowest priced? Which stocks are trending the best? Buy whatever stocks you want. Don't worry about anything else. Once you buy, don't move. When it's time to sell, I'll naturally notify you two."
"What? I'll buy it?"
Zhao Xinyue was shocked. She had never handled such a large amount of funds before, and she couldn't help feeling uneasy.
Lin Menghan's own account has soared to more than one million, so naturally she does not have this kind of psychological burden. She thought about it again in her mind and agreed to the key points emphasized by Li Feng.
"I believe you, no problem. If you have any questions, talk to Menghan," Li Feng said, "you should start selecting stocks now."
"Yeah." Lin Menghan and Zhao Xinyue responded in unison, then gathered together and began to stare at various stock forums and discuss.
The concepts in the bull market are dazzling.
The K-line in the bull market is dizzying.
One stock god after another emerged, and stories of getting rich quickly began to circulate widely in the forums. Everyone's eyes were glowing red as they looked at this bull market excitedly.
There are so many opportunities, it seems like they are everywhere.
Money is so easy to make. You can make money by just buying any stock.
Every stock investor is seizing every minute to study stocks, study how to make money, study how to get rich overnight, and study how to change his fate.
Money, money, and more money!
It makes people crazy and crazy.
Lin Menghan and Zhao Xinyue were no exception. They took leave and sat in front of the computer for two or three days. Sometimes, Li Feng ordered takeout for them for lunch and dinner.
"We have found a few stocks. Li Feng, please come and take a look." Zhao Xinyue was the most anxious and shouted.
Li Feng put down the newspaper in his hand and walked over slowly.
Zhao Xinyue was impatient and urged, "Hurry up, hurry up, hurry up, what if the price reaches the limit?!"
Li Feng smiled bitterly, walked over, and asked, "What kind of stock is so good? It hits the daily limit every time? And it only takes me a second?!"
"Since the announcement of the reorganization on December 30, the two stocks of China South Locomotive and Rolling Stock Corporation and China Northern Locomotive and Rolling Stock Corporation have both hit the daily limit, and have been hitting the daily limit for six consecutive days. It is said that they will merge into China CNR Corporation Limited to reduce competition and work together to go abroad and compete with foreign high-speed rail counterparts. Their stock prices are low, only five or six yuan at the beginning, and now it is more than ten yuan. Their price-earnings ratio is..." Zhao Xinyue pointed at the screen and said one by one.
Lin Menghan added:
"Besides these two hot stocks, there's also Eastmoney.com, which has a low share price of just over four yuan. This company owns the stock forum, and I heard they also have brokerage and fund businesses. Their performance is sure to be very good during this bull market this year..."
"There's also LeTV, whose boss is the famous Jia Yueting... There's more of a concept story... The price isn't high either, currently just over 8 yuan..."
"besides……"
Li Feng looked coldly at the concepts of these stocks. The red K-lines of these stocks were both an exciting and soaring road to wealth, and a journey for the main players and retail investors to reap benefits from each other.
Whether it is a bull market or a bear market, these noisy hot stocks are little-known wealth traps. Those red K-lines are blood-red sickles, and those green K-lines are guillotines stained with countless retail investors.
Do not enter a dangerous country, and do not live in a chaotic country.
As a retail investor, you must keep a clear head and not fall into this kind of trap easily, especially in a bear market. If you must take risk, it is best to enter with a small position and find someone to take over.
It's a bull market now. There's no shortage of capital or people willing to buy stocks. What's lacking is courage. Li Feng thought for a moment and said, "Buy all four stocks, 125,000 yuan each."
After hearing this, Zhao Xinyue quickly opened her account, nervously entered the code, and bought, fearing that she would miss a single minute.
Li Feng smiled and said:
"Why are you in such a hurry? The index is currently hovering around 3,000 points. This is because the Lunar New Year is approaching. The rest of the time will be a rubbish market."
"After the Lunar New Year, news of the bull market, stories of getting rich quick, and legends of the stock god will spread further among friends and family. Many new and old investors will invest in the stock market, and the index will naturally rise..."
Zhao Xinyue became greedy after hearing this and said:
"Since the index is going up, how about we invest more? You still have several million in your account. If you catch a limit up, that would be hundreds of thousands... hundreds of thousands..."
As she spoke, she looked at Li Feng, her eyes full of expectation.
Li Feng turned off the computer screen and said:
"Xinyue, if you want to survive in the stock market, you must understand that investment is investment and speculation is speculation. Buying these stocks now is not because of how good their performance is, but because you are speculating that someone will take over at a higher price in the future."
"The index is currently at 3,000 points, which is the median. Even if my judgment is accurate, there is always a chance it will be inaccurate. Therefore, when it comes to speculation, I can only hold a small position, not a large one. This is why I only put out 500,000 yuan, or 20% of my position, for speculation."
"Well, Xinyue, you handle the 500,000 yuan and train your mind. Menghan, since you're not busy at work, you can take charge of the new stock investment. Remember to calculate the profit and loss of each stock."
The computer screen was turned off, just like a magic mirror. Zhao Xinyue and Lin Menghan felt empty inside. They unconsciously wanted to take out their mobile phones from their pockets and take another look at the fascinating stock market situation.
"Stop looking at it! Your head will be buried in the stock market," Li Feng said with a smile. "I made money today, I'll treat you guys to shopping!"
"Where are you going?"
"The Tianxi Shopping Mall in the city center." Li Feng said.
"yeah!"
"Wow!"
Zhao Xinyue and Lin Menghan jumped up together.
The two of them simultaneously took Li Feng's hand and walked out of the trading room.
At the same time, there was silence in Liu Bin's trading room next door.
Looking at Li Feng's amazing rate of return, not only Cao Song was stunned, but Liu Bin was also a little dumbfounded.
"What is our current rate of return?!" Liu Bin asked with a cold face.
"Two million! 400%." Cao Song replied.
"You stupid piece of shit! I told you to fight, but you couldn't even beat Li Feng! What the hell are you doing?! If you don't do well this month, forget about getting your salary," Liu Bin cursed. "Keep fighting! Fight all of you!"
Cao Song listened and said in embarrassment: "Young Master Liu, it's a bull market now, and the trading volume of all stocks has increased. It's too difficult to trade against each other, and the friction cost is getting higher and higher."
"Just tell me, if you trade everything in a real account, how many tens of thousands can you make?!" Liu Bin cursed.
"Well, well, Mr. Liu, it's a bull market now, and we can't find any unpopular stocks anymore. Let's trade in hot stocks..." Cao Song said.
"No, it's too slow!" Liu Bin frowned and said, "You operate first. I'll see if I can borrow some more money from my father."
Upon hearing this, Cao Song turned around and continued to operate.
Liu Bin walked out of the trading room and heard a chorus of praise in the hall, feeling mixed emotions.
Just at this moment, Li Feng walked out of the trading room with Lin Menghan and Zhao Xinyue.
When Liu Bin saw this, he gnashed his teeth in jealousy.
He shouted sternly, "Li Feng, don't be too proud. There's still more than half a year before the competition ends. There's still a lot of time. Do you dare to say that your rate of return will always be higher than mine?"
Li Feng heard this, turned around and said seriously:
"Mr. Liu, your rate of return will never surpass mine, not now, not this year, but in the future. This is not self-praise, but due to our different levels of understanding and strategies."
Liu Bin was furious when he heard this and said angrily:
"I can't surpass you? Didn't you just use leverage? You can use it, but I can't?! Cao Song, go find Boss Gan and open a 10x leverage financing business immediately!"
Cao Song heard this and came over, urging him:
"Young Master Liu, the bull market is here, so it's okay to add some capital, but this tenfold capital increase is a bit too much. If there's any disturbance, the principal will be lost!"
"Get out of here! Can't you hear me? Why don't you do it quickly? What are you talking about here? I just lost all my money, and it has nothing to do with you?" Li Bin started cursing, shocking the people around him and making them shake their heads.
Cao Song was ridiculed in front of so many people. His face was extremely ugly. He took a deep breath and said, "Okay, Master Liu, I'll do it right away."
With Qianlin Group standing behind Liu Shao, Gan Yitong naturally approved the financing business with ten times leverage with a wave of his hand. However, unlike Li Feng's loan for stock trading, Liu Bin's account was directly transferred to a special financing account. Once the stocks purchased by Liu Bin fell below the liquidation line, the position would be liquidated directly.
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