Rebirth 1991: My Financial Era

According to Sun Chen's strategy, Lin Hui and He Linshi's operation plan was to buy call options first and then go long on the Hang Seng Index futures.

He Linshi obtained a license from HSBC for 10 times leverage on Hang Seng Index futures, which is a 10% margin.

Futures trading cannot be carried out with a high position, let alone a full position, as a single fluctuation will result in the liquidation of the position. Sun Chen does not have the special ability of other reborn people who are not afraid of liquidation, so he can only adopt a conservative strategy, generally holding 40-60% of the position, with an average of 50%.

If you buy and hold, the Hang Seng Index is expected to rise by 40%, which will result in a 4-fold return.

However, the stock index fluctuates in a wide range, forming countless peaks and troughs. The role of Lin Hui and He Linshi's team is to seize the small swing range and continue trading in order to obtain greater profits.

Take a long position as an example. If there is a correction, you can lock the position, which means opening a short position with the same amount as the long position. You do not need to pay a new margin. When it starts to rise, you can close the short position and the long position will not change.

Of course, if you do the opposite, you will definitely lose money quickly.

If the stock index rises sharply, the long position will make a profit, and the profit part can be used as a margin for the new position. This is called floating profit addition.

Sun Chen himself had a 996 blessing in his previous life, and his trading operations were not efficient. He knew this. Without good trading habits and risk control measures, you may lose money even if you look in the opposite direction in the bull market. He needs a team of traders to operate.

"Sun Sheng, my team adopted a radical strategy. Half of the funds purchased call options and the other half was invested in long positions in Hang Seng Index futures. The position has been established." He Linshi reported.

"Very good, where is Director Lin?" Sun Chen asked.

"Director Lin, one-third of the progress is made in opening a stock position, and one-half progress is made in opening a call option and futures position," He Linshi replied.

"Continue to add positions." Sun Chen ordered.

Sun Chen came to Li Minhong's operation room in person. Sun Chen rented a new office unit.

"Director Li, how close is it to opening a position in Nikkei 225 Index futures?" Sun Chen asked.

"All positions have been used to the maximum extent, the Nikkei Index futures margin ratio is 60%, and all put options bought have been traded." Li Minhong replied.

"Okay, you do mark-to-market operations and short trades. The lower the price falls, the less the margin will be, and the more funds you will have to add to the position due to floating profits. The transaction will be very smooth." Sun Chen said.

"Sun Sheng, our short position reduction was met with a counterattack by the bulls." Li Minhong reported.

"What's going on? Is there any loss?" Sun Chen asked.

"It should be that Japanese capital is still maintaining the index." Li Minhong guessed.

Li Minhong's guess was correct.

At the same time, in the investment room of Nomura Securities, Yamamoto Weiji of 30 Capital was excitedly doing long.

"Baga, the capital of Hong Kong City actually dares to compete with the capital of the empire, increase the intensity of long selling, and maintain the stock index at 24000 points." Yamamoto Weiji ordered.

"Hi, Section Chief, the funds have been used up." The subordinate bowed ninety degrees and said.

"Baga, a bunch of trash!" Yamamoto Weiji picked up the phone and called the president.

"Sir Iwasaki, the funds have been exhausted. Please give instructions whether to continue to allocate funds. Yes, hi!"

Yamamoto Weiji pointed at his subordinates and said, "The funds will be received soon, continue to scan the goods!"

"Hi!" The subordinate bent down and went out.

"Haha, great, keep adding positions. Increase the position to the maximum at the current index." Sun Chen instructed.

"Don't worry, Sun Sheng, we will keep an eye on it." Li Minhong said confidently.

"Okay, good luck." Sun Chen sincerely wished.

Sun Chen came to the crude oil trading team again. Crude oil fluctuated greatly. It was not very smooth in many cases and had many glitches.

When Wu Qixiong saw Sun Chen coming, he quickly stood up and proactively reported the progress: "Sheng Sun, I have established a short position, and the margin has reached 50%."

"Okay, the crude oil trading time span is long, your team must do a good job of mark-to-market rotation to prevent risky times from happening." Sun Chen instructed.

"No problem, I have already arranged it." Wu Qixiong assured.

"Okay, go about your business. I'm leaving."

What Sun Chen didn't know was that his crude oil account almost experienced a major retracement just now.

Citigroup's Lehman Trading Room. Trader Andrew said: "Boss, there is a small trash fish coming into the port city. Do you want to clean it up before sending the train?"

Investment Director Bruce said: "Shet, you're a dog-food guy. Don't be too meddlesome. Just follow the plan above. I'll be careful about firing you. Shet!"

Sun Chen returned to the office. Once the trading strategy was formulated and he entered the execution phase of trading, his job became easy.

As soon as Sun Chen was free, he thought of Zhang Xiping. He felt that he hadn't seen him for a long time and didn't know what he was doing. Sun Chen asked the girl at the front desk to find Zhang Xiping.

"What are you busy with?" Sun Chen asked him.

"I have recently been practicing and exchanging ideas in Wing Chun with Uncle Quan. There are many exquisite moves in Wing Chun." Zhang Xiping is focused on martial arts.

"Did you call your comrades? What was their reaction? Is there anyone willing to come over?" Sun Chen asked the main topic.

"Yes, the resettlement allowance is sufficient, and I can still work in the port city. Many people are interested and are preparing the procedures." Zhang Xiping's execution ability is not bad, but he reports a little less.

"Okay, they will need a training ground when they come over. If you have time, find money and go to Tseung Kwan O to have a look. You are a professional." Sun Chen told him.

"Okay, don't forget to practice. I'm leaving." Zhang Xiping left in a gust of wind again, probably to compete with Uncle Quan.

A week later, Li Daxiao, the editor-in-chief of Pujie, came over. The revision of "Starlight Daily" was completed and was brought to Sun Chen for review.

"Star Daily" has now been restructured into a financial-oriented newspaper. The headline on the front page is a comment: "The Hang Seng Index has reached a baby bottom and will never return to the sea." The author is Li Daxiao.

The article asserts that the Hang Seng Index, like the Hong Kong economy, has hit bottom this year. Like a newborn baby, it is growing all the way and has an unlimited future. The logic of the analysis was exactly the meeting minutes that Sun Chen had asked He Linshi to give before.

Sun Chen picked up the newspaper and began to read it.

Hong Kong's major events are relatively comprehensive, the Hang Seng stock market news is not very in-depth, and the reports from the mainland are fairly objective. Real estate comments are limited to the analysis of specific real estate properties, and there are no blockbuster articles.

"Editor Li, your page is confirmed and there is overall improvement, but the reporter's skills are not enough. You can make an appointment with Director Lin to see their analysis of the stock investment value." Sun Chen commented.

"The focus this week is to comment on the stock market. The editorial can publish a series of articles, and the language should be entertaining. You can find other newspapers to try." Sun Chen continued to only recruit.

Li Daxiao was about to reply "Okay Sun Sheng", but Sun Chen stopped him in time.

"Next week the main subject will be real estate. Remember to expand enrollment and dig deeper into real estate as a Feng Shui and entertainment topic. Now real estate developers are our best advertisers. Remember to let people from the marketing department run advertisements." Sun Chen continued to explain.

"Okay, stop talking, go back and keep working hard." Sun Chen waved his hand, not wanting to see this guy rush off.

The next day, the newspaper stall received a free copy of "Star Daily" and the stall owner couldn't wait to open it.

"Baby, you idiot, you are really good at talking nonsense!" He cursed and took a bite of sugar cane. Then he rushed to the newspaper truck and said, "Give me twenty copies to test the water."

The customer came over and gave me a copy. Seeing the customer laughing and cursing, he immediately took the newspaper to the front and started selling: "The revised version of "Star Daily" is on the market, and it's 5 cents a copy!"

Once it was passed down to ten, it was passed on to hundreds. "Baby Bottom" became completely popular, and Li Daxiao became famous.

When the Hang Seng Index opened, small-amount buying orders gradually increased. At ten o'clock, long buying orders poured into the trading center aggressively. The Hang Seng Index surged by 1.5%, catching short sellers off guard, and retail investors used financing to buy stocks.

In the trading room, Lin Hui's team is marking the market. Lin Hui saw the abnormal movement and issued an order: "The rising trend is established, step back and increase the position with floating profit."

The Hang Seng Index rose with volume.

At the closing time in the morning, financial reporters rushed out to find the reasons for the abnormal movements in the stock market. The reporter from the Chinese Channel saw many stock investors holding Star Daily News and asked the broadcaster to take the footage and bring it back to the noon news broadcast.

As the TV news feature aired, the baby bottom assertion quickly went viral. This is an era where everyone can be sold out because of a certain TV series, the era of television media.

"Star Daily" became popular, and a call from the newsstand requesting additional printing came to the editor-in-chief's office. Li Daxiao hurriedly directed printing and distribution.

Sun Chen saw the TV news and asked for a newspaper. He picked up the phone and dialed He Chaoqiong.