Rebirth of the Capital Legend
Chapter 20: Shorting the stock index again!
"This feeling of free consumption is so good!" Su Yi said with emotion.
After paying back his credit card and making revenge purchases, he still had more than 750 million in funds in his bank card.
Of the more than 750 million, he will use 600 million to continue shorting the China Securities 500 Index futures. With the remaining more than 150 million, he wants to buy a car first.
As for buying a house.
With the millions he has in hand, he can't buy any high-quality housing in Shanghai.
Therefore, he wanted to wait until he had accumulated more funds before talking.
After buying a house, he also wanted to take his parents over, let his mother receive medical treatment in Shanghai, and find a suitable kidney source for his mother; he also wanted to start a company and use the advantages of his rebirth to expand his business; he also wanted to accumulate more money. Capital, in the next ten years of development that it knows, will seize more dividends of the times; it also wants to...
There are many things he wants to do.
And these things require a lot of money and capital to achieve.
So, make money.
It is still urgent to take advantage of the huge short-selling opportunities of the current bull market crash, desperately make money, and accumulate stronger starting capital.
After thinking about this, Su Yi passed away from the excitement of crazy consumption.
I started to calm down, opened my laptop, synthesized various current financial information in the market, and formulated a follow-up trading plan.
After today’s market counterattack.
During the discussion among the broad market investor groups, the bull market atmosphere became intense again.
Moreover, the article "2 points is just the starting point of the bull market" that was published as a front-page headline by a well-known official media two months ago was once again reprinted and quoted by everyone to express the 4000 points for this round of market correction. Nearby, it is the policy bottom defined by regulators, which is the extreme position of market correction in the bull market trend.
At the same time, it also shows that the regulatory authorities are still strongly protecting the market and hope that the market's bull market can continue.
With the support of these arguments that are generally recognized by everyone, the bullish sentiment began to advance again.
Suddenly, there are more and more investors who are optimistic that the Shanghai Composite Index will hit a new high in this bull market in the next month, and even believe that the Shanghai Composite Index will inevitably hit 6100 points within three months.
Su Yi discovered that less than a day had passed.
Everyone seems to have forgotten the tragic scene of 'thousand stocks falling to the limit' just last week, and the despair dominated by panic under the extreme plunge in early trading today.
Someone once said to him.
Retail investors in the financial market are like fish in a fish tank, with a memory of only seven seconds.
A huge positive line can change their bearish belief; a huge negative line can also change their strongly bullish belief.
Su Yi deeply agreed with this.
He knows that the A-share market is an investment market dominated by retail investors.
The vast number of retail investors, due to their different cognitions and various cognitive flaws, are bound to be overwhelmed by emotions and make irrational trading operations or investment decisions.
Therefore, when market investors are generally optimistic, the stock price must rise too high, and when they are generally pessimistic, the 'pendulum effect' of stock prices must fall too high is often performed in the A-share market.
Of course, this extreme sentiment trend is caused by the structure of major investor groups.
Su Yi believes that this is also the unique charm of A-shares.
And every time emotions become extreme, there are often good trading and investment opportunities hidden there.
In and outside the market, bullish sentiment continues to surge.
The trend of the external market in the evening was also quite consistent, opening higher and moving higher, injecting higher investor expectations into the A-share market trend the next day.
Just as investors' expectations are gradually rising, everyone is shouting "Bulls Turn Back".
The next day, Wednesday, August 6th.
The Shanghai and Shenzhen stock markets opened higher across the board, with the Shanghai Stock Exchange Index opening directly above 4650 points, up 1.12%.
Su Yi looked at the market that was opening higher across the board. He sat in the VIP trading room of the Huaxin Securities Financial Street Fuxing Road Sales Department. After transferring 600 million funds into his stock index futures trading account, he was not in a hurry to open a position. .
"Mr. Su, is this position okay?" Lin Xiaoxiao, as his stockbroker, put the cup of tea he had just made on the computer table in front of Su Yi, and inadvertently glanced at the 600 million in Su Yi's account. The balance of available funds, the smile on his face became brighter and brighter, "If you have any other needs later, just call me directly, or send me a message on WeChat."
Su Yi turned his head and glanced at the bustling Financial Street outside the window and the Shanghai Stock Exchange vaguely visible in the distance, and responded: "Okay, thank you for your hard work, Miss Lin."
"This is my job, as it should be." Lin Xiaoxiao replied with a smile.
Then, he left knowingly.
Next, the time quickly reached 9:30, and the two cities entered the formal stage of continuous bidding transactions.
Supported by the fiery sentiment and after regulators eased the pressure on panic selling of leveraged funds, the Shanghai Stock Index opened higher and continued its upward trend.
At 10 a.m., the Shanghai Stock Index rose 1.5%.
At 11 a.m., the Shanghai Stock Index rose 2%.
At 1:45 p.m., after a plunge in the Shanghai Stock Exchange Index, it quickly recovered from its plunge and refreshed the day's gain to 2.32%.
At 2 p.m., the Shanghai Stock Index continued to fluctuate higher.
Su Yi patiently watched the market and still wasn't in a hurry to place an order.
At 3 o'clock in the afternoon, the Shanghai Stock Index closed at 4690.15 points, up 2.48%, almost closing at the highest point of the day. The main contract of the China Securities 500 Index stock index futures, which he planned to open a short position, had an intraday increase of basically the same as the Shanghai Stock Index.
Faced with strong covering by bulls.
Su Yi watched the market for a whole day and found no better entry point for short selling.
But he was in no hurry.
Ten years of trading in the financial market have long made him understand that the first and most important lesson in trading is to be patient.
Without suitable opportunities, forced trading is the source of losses.
Although he knew that the Shanghai Stock Exchange Index would never return to 5000 points and the market would plummet sooner or later, the market fluctuations between bull and bear transitions were huge.
According to the financial product of stock index futures, it has extremely high leverage attributes.
Once he chooses the wrong time, he continues to be short-selling without any thought.
Even if you go in the right direction, it is very likely that you will be wiped out after the short-term emotions are vented and the long-term crazy counterattack occurs.
Therefore, even if you have the advantage of rebirth, you know the mid- to long-term development trend of the market.
He still must be cautious and calm, and maintain sufficient patience and timing judgment when trading.
Seeing Su Yi sitting in front of the computer for a whole day without making any transactions, Lin Xiaoxiao felt puzzled, but she did not boldly ask why.
Just follow Su Yi's instructions.
After Su Yi left, he continued to leave a place for him in the VIP trading room of the sales department.
Another day passed.
October 6th, Thursday.
In early trading, after continuing to open higher, the Shanghai Composite Index did not hit a new high for more than an hour.
At this time, Su Yi's eyes looking at the market finally showed a look of "happiness". He used the 600 million funds in his stock index futures trading account to short sell a large position near the 500 point of the main contract of the China Securities 10300 Index futures. 20 lots of contract orders.
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