Chapter 405: Beat the Short Sellers and Jump Into the River, Awe!
Details determine success or failure, talent + hard work = success! The current Lu Jiehui made Li Xiaofan look at him with admiration.
After hearing what Lu Jiehui said, Li Xiaofan gave a thumbs up and said:
"Ah Hui, no wonder you are so successful in futures trading. The detailed research beforehand is so important!"
Lu Jiehui raised his glass and said, "Afan, you're very grateful. I haven't finished telling the story yet... Come on, let's go first!"
After finishing his glass of wine, Lu Jiehui continued his story:
“After we completed the research and other preparatory work, in the second half of last year, we brothers decided to go long on the red bean futures contract of the Jiangsu Stock Exchange. At that time, the 9602 contract of the Jiangsu Stock Exchange was the heavy position of our brothers. etc. After we completed the layout, due to the low futures price of red adzuki bean and the reduction of red bean production, etc. Interest rates prompted many funds to rush into the market to buy the bottom. The 9602 contract started at 3,380 yuan per ton in mid-October last year. Just 20 days later, it soared to 4,155 yuan on November 9, a surge of 22%. , allowing our brothers to make a leap from millions to tens of millions!”
"Awesome! What happened next?" Li Xiaofan praised.
"After the Hongzhongdou 9602 contract reached a high in November last year, it fell back and consolidated for a period of time. But in December last year, it began a second wave of surge, reaching a peak of 5,300 yuan per ton, an increase of an astonishing 57% . We follow the advice of Hongxiaodou of the Soviet Union. The main bulls squeezed out their opponents on the 96 series red bean contracts and beat them to the sword! The two waves of sharp increases in the 9602 contract caused heavy losses to the main short sellers and at the same time brought down many hedging institutions and major players. This battle will make me and my brothers earn a lot of money!"
"You've made so much money, shouldn't it be time to stop?" Li Xiaofan asked.
"Hey, it's just greed! Just when we brothers were planning to close our positions and count the money, on January 8 this year, the securities regulatory agency above suddenly issued an emergency document overnight, declaring that the red bean contract and transaction of the Soviet Union The rules are not perfect, requiring all contract positions to be reduced, and no forward red bean contracts after 9608 will be opened. This document will undoubtedly give us a blow to the bulls on January 9th! On the third day, January 10, the Suzhou Red Bean contract continued to fall by the limit after opening, putting subsequent long positions at high risk of liquidation and huge losses. Subsequently, in order to calm the matter, the Suzhou Stock Exchange launched a series of forced liquidations. As a result, the price of red adzuki bean futures fell sharply. On Women’s Day on March 8 this year, the securities regulatory agency issued another notice: suspending the trading of red adzuki bean futures contracts on the Jiangsu Stock Exchange!
Lu Jiehui said with a wry smile: "The red bean futures contract of the Jiangsu Stock Exchange started on Children's Day last year and ended on Women's Day this year. History is like a joke from children to women!"
"Ah Hui, did you finally make money on this Hongxiaodou contract?" Li Xiaofan said with a smile.
"The rooster crowed in the middle of the night on January 8 this year. After the sudden document was issued, the limit dropped for two consecutive days. We were caught off guard and didn't even have the chance to close our positions. Most of the previous profits were given back. In the end After the forced liquidation and settlement of positions on the Jiangsu Stock Exchange, it was pretty good and we made a small profit. However, the frequent changes in trading rules made us very disappointed with this futures market. Therefore, after withdrawing from the Hongzhongdou contract, we currently invest our funds mainly in stocks. market……"
The story of the red bean contract told by Lu Jiehui reminded Li Xiaofan of his previous life in January 2001. Mr. Wu said in an interview with CCTV: "Our stock market is very much like a casino, and it is very irregular. There are also rules in the casino. For example, you cannot Look at other people's cards. And in our stock market, some people can look at other people's cards, cheat, and engage in fraud. Making money, speculating, and manipulating stock prices can be said to be at their peak..."
At present, the basic system construction of domestic securities trading such as futures and stocks is still very imperfect, giving many people the opportunity to maliciously manipulate and take advantage of the market.
But the more muddy the water becomes, the more opportunities there will be for reborn people like Li Xiaofan. All he has to do is be a quiet "follower"...
In fact, Li Xiaofan also knew that for people like Lu Jiehui who were born to rely on the futures and stock trading markets, it was impossible for him to completely leave the futures trading market.
In his previous life, it was precisely because he had experienced many fierce battles such as the 327 National Debt and Su Xiaodou that the battle-hardened Lu Jiehui later became a powerful man in the futures and stock markets...
After telling his red bean story, Lu Jiehui asked Li Xiaofan:
"Afan, you were working in Singapore last year. You were fine. Why did you suddenly come back to China to make the 327 Treasury Bond product?"
Lu Jiehui's question suddenly made Li Xiaofan not sure how to answer.
He blinked his eyes, took a sip of wine, and prevaricated:
"Among the workers who work together in our factory in Singapore, there is a college student whose hometown is in Zhoushan. He used to trade plywood futures for a state-owned material company in the provincial capital. Later, their company was liquidated and suffered huge losses on the plywood contract. The company subsequently closed down and was dissolved. At the beginning of last year, he accidentally mentioned to me during a meal that a group of his old colleagues were operating the 327 Treasury bond product. At that time, I heard about it and later came back to China to gamble. Got a handful!”
After hearing this, Lu Jiehui was shocked: "Oh my god, you are more courageous than me! Afan, I remember you were a good and obedient student when you were studying. I remember we used to bet in the park next to the school after class. At that time, you never participated. Why has gambling become so big now?”
"People change! Ah Hui, you used to be a self-employed seafood trader, but now you have become a major securities trading business."
Lu Jiehui said with a smile: "Haha, I have always been naughty and disliked reading. Since I was a child, I have always liked to think about ways to make money in business. Now, it really surprises me that a good boy like you also ends up gambling heavily!"
"Who would have trouble with money?" Li Xiaofan said with a smile.
"But the 327 treasury bond variety you chose surprised me. At that time, without the inside information above, most people would not have dared to touch this contract. If you don't play it well, you will lose everything and be shattered to pieces if you are not careful!"
Lu Jiehui continued:
"On February 23 last year, I followed a well-informed 'leading brother' to go long on the 327 treasury bond contract. At that time, I invested a total of 327 treasury bonds with my family's savings and money borrowed from relatives and friends. More than 10,000 funds were used for short-term trading of 327 treasury bond contract products until the afternoon close. In the first 8 minutes, the funds in my account reached more than 1 million. When the market closed, 327 Treasury Bond Futures suddenly encountered a huge short order from Wanguo Securities. The funds in my account increased from a profit of more than 1 million in a few minutes. It turned into a loss instantly. After the market closed that day, I still owed the securities company more than 400,000 yuan!”
"After the market closed, I sat alone on the edge of the Yongjiang River all night! I couldn't figure out why I lost money in that instant... I didn't dare to go home, I didn't dare to go home and face my parents, I didn't dare to face the neighbors who lent me money Neighbors, relatives and friends from the seafood stall! That night, I drank a whole box of beer alone, trying to numb myself with alcohol!”
At this point, Lu Jiehui's eyes became red and moist with excitement, and he continued:
"Afan, to tell you the truth, at that time I almost wanted to jump into the river and be done with it! But then, maybe I drank too much and fell asleep on the bank of the river. When I woke up, a little brother Find me, Xida Puben, and tell me that all transactions on the 327 Treasury futures contract after 16:22:13 yesterday are invalid! All the profits of nearly one million yuan in my account are back!"
"That night, God seemed to have played a huge joke on me! After this painful experience, I began to be in awe of the market. So, Affan, it's hard for me to understand now why you didn't work properly in Singapore last year. , taking huge risks to invest in 327 government bonds..."
After listening to Lu Jiehui's story, Li Xiaofan was deeply shocked, but he still had a cynical look on his face and said with a smile:
"It's rare for a person to play with his heartbeat. Last year, I was just like you. I wanted to take a gamble and change the trajectory of my life!"
"Afan, I heard that you made far more money than me on 327 Treasury Bond Futures last year. So what are you doing now?"
"I said I was speculating in stocks, do you believe it?" Li Xiaofan said with a smile.