National Tide 1980.
Chapter 1848 Newbie Protection Period
It's 9:45 a.m. now, and the stock market has just opened.
Whether they made money yesterday or just rushed in today, most people like to make their move at this time.
Therefore, this period is not only the time with the highest trading volume of the day, but also the busiest time in the stock market.
Mi Xiaoran was a little slow because she had to organize her documents and pick up her mobile phone.
Before anyone could see, Zhang Shihui, eager for profit, had vanished into the noisy hall and disappeared without a trace.
But it didn't matter, there were plenty of staff in the lobby. Mi Xiaoran found someone and asked where the VIP room was, then went up a staircase in the corner.
The second-floor corridor is a completely different world from the downstairs. Starting from the stairs on the first floor, the floor is covered with a dark red synthetic fiber carpet that is silent when stepped on, isolating the sound of footsteps.
Therefore, it immediately quieted down as soon as it started.
Apart from the occasional faint sounds of laughter and hushed conversations coming from above, there was none of the hustle and bustle of a typical trading hall.
The twenty-odd rooms in the corridor are what people call "VIP rooms".
According to current standards, only customers with account funds of 200,000 yuan or more can use it.
"Excuse me, this is the VIP floor. Unauthorized personnel are not allowed to enter!"
Sure enough, as soon as Mi Xiaoran reached the entrance of the corridor, a "gatekeeper" blocked her way.
Two security guards stood in the middle of the corridor, blocking the entrance to the VIP room and reaching out to block Mi Xiaoran's way.
Mi Xiaoran neither answered nor got angry. She simply smiled slightly, opened her purse, and took out a hard card that she had just bought for 500,000 yuan to show them.
This card serves as your access to the VIP lounge.
Upon seeing this, their expressions immediately changed; their previously serious demeanor transformed into amiable smiles. One of the security guards spoke respectfully to him.
"Excuse me, miss, please come in. Rooms 5, 7, 9, 11, 13, 14, 15, and 19 are currently available. You may choose any of them."
As we all know, in the financial game of stock trading, the more capital you have, the more advantageous it is.
Therefore, many retail investors believe that as long as they follow the big players in buying or selling, they will definitely not lose money.
Since the brokerage opened the VIP room, many retail investors have been targeting the VIP room to inquire about information. The exchange also adopted the method of security guards to prevent unauthorized personnel from entering.
But the VIP room is not mysterious at all, especially when the business department first opened, the facilities in the VIP room were very simple.
Mi Xiaoran inquired about Zhang Shihui's whereabouts with the security guard and then pushed open the door to room number 9.
What she saw was nothing special; it was just a place like an office.
The room's aluminum alloy window frames were covered with thick beige curtains, blocking out the natural light. Only the overhead fluorescent lights were on, providing a soft glow.
The room is not large, with only four individual workstations with desks, each with the same configuration.
A very ordinary beige office desk and a black faux leather executive chair with casters.
A desktop computer sits in the center of the table, with a monochrome spherical monitor displaying stock market quotes received via a video call card, showing a scrolling stock price curve.
Zhang Shihui was intently observing the market trends at a table. The light from the screen reflected on his face, making his complexion flushed and highlighting his joy.
However, the most important thing in the whole room is not actually these computers, but a red landline phone sitting on the corner of the table.
To buy or sell stocks, you need to call a dedicated order clerk.
That phone line is a direct line to the red-vested staff inside the trading room, much faster than placing orders at the counter downstairs. This is the most valuable service in the VIP room—a relatively convenient trading channel.
"How's it going? Your stocks..." Mi Xiaoran walked over and sat down next to Zhang Shihui.
"It really surged, it just hit 12%, I sold."
Zhang Shihui said with a beaming smile, "I made over 100,000 yuan from this deal. I earned 25% in just one week. I'll treat you to lunch."
"One hundred thousand!" Mi Xiaoran was genuinely surprised. "So you invested four hundred thousand in this stock?"
"Haha, I started investing in stocks quite early, and I made a lot of money, so I played it big."
Zhang Shihui smiled broadly, appearing even more radiant.
"Stop telling me, you should buy too. The market is good right now, it can't fall too much, you can make money no matter how you buy."
"real or fake?"
"Of course it's true, and there are no price limits now. If things go smoothly, some people can double their money in a single day." Zhang Shihui kindly urged Mi Xiaoran to get started, eager for her to open for business and make money.
"What are the upper and lower limits?" Mi Xiaoran asked curiously, not in a hurry.
The US stock market does not have such a mechanism.
Zhang Shihui explained, "If a stock keeps rising endlessly within a day, it's not good for the safety of the stock market. Therefore, our China Securities Regulatory Commission (CSRC) sets a limit on the daily price increase for each stock. If the price exceeds this limit, it cannot rise any further that day. This is the daily price limit. Similarly, if the price falls to a certain level, it cannot fall any further. This is the daily price limit. However, this mechanism was abolished last year. We need to align with international standards."
"I understand," Mi Xiaoran said. "Is there anything else I should pay special attention to?"
"Oh, you're quite cautious." Zhang Shihui nodded in approval. "Well, if I had to say, you shouldn't put all your eggs in one basket. You should buy different stocks. That way, if you get stuck with a losing stock, you won't lose everything. Also, try to choose Shanghai-listed stocks and avoid Shenzhen-listed ones."
"why?"
"Because the Shanghai Stock Exchange implements T+0 trading, stocks bought on the same day can be sold on the same day. This is not the case in the Shenzhen Stock Exchange, which uses T+1 trading, meaning stocks bought on one day can only be sold the next day."
"I see. The United States doesn't have such restrictions; it's all free trading on the same day..."
"Haha, sis, this just means we haven't learned from them thoroughly enough, we're not fully internationalized yet. But as long as we can make money, that's all that matters. At least we have places to make money in China now, which is better than before when we couldn't and could only watch others make money abroad, right?"
Zhang Shihui's words struck a chord with Mi Xiaoran. Remembering that Ning Weimin had made his fortune through stock trading, Mi Xiaoran no longer considered this minor flaw worth fussing over.
"Then what do you recommend I buy?" Mi Xiaoran asked. "As a seasoned veteran who has already made a lot of money, shouldn't you give me some pointers?"
These words further satisfied Zhang Shihui's vanity, so he readily agreed. "If you insist on my suggestion, I'd recommend buying some Yanzhong and Hualian Department Store. Yanzhong was one of the earliest stocks issued in Shanghai, and it was among the first to go public, along with Dafeile. It experienced a period of frenzied growth, with thousands of investors rushing to buy it, but its subsequent decline left many investors deeply trapped. Nowadays, with more people looking at stocks in Shanghai, Yanzhong seems to have been forgotten. However, I recently discovered that Yanzhong's after-tax profit last year may have reached 150 million yuan, a 216% increase from 1991. The stock is currently only 2 yuan, and it quietly rose in February. Although the increase wasn't significant, it showed signs of a breakout. It's worth a gamble. As for Hualian Department Store, it's a newly listed stock from last month. On its first day of trading, it was caught in a market correction and started to fall, but it has now stabilized and looks like it's about to surge upwards."
At this point, Zhang Shihui covered her mouth with her hand and whispered in Mi Xiaoran's ear, "Newly listed stocks usually rise, and it's rare for them to fall during market corrections. Since those who won the lottery are willing to earn less and sell their shares cheaply, this is exactly what we big investors want. So the more others sell, the more we should buy. I'm sure someone wants to manipulate this stock. And there's an unspoken agreement among the big investors; everyone can see the opportunity in this kind of stock. If we go in now, we'll be working with others to drive up the stock price, and we're sure to make a profit. When the retail investors outside see the stock price rise and chase after it, we can just sell."
Mi Xiaoran also believed in taking advice and didn't care whether retail investors made a profit or a loss, so she asked Zhang Shihui about her trading methods.
Immediately, someone followed suit and made a phone call to the policy clerk from their room.
"Sold."
A moment later, Zhang Shihui, who had been watching her operation, informed her, "You are now a shareholder of Yanzhong and Hualian, which means you are one of their owners."
Mi Xiaoran smiled and shook her head, indicating that she was indifferent to it.
Zhang Shihui said, "Don't rush. Trust me, once you get off to a good start and start making money, things will be different. This kind of thing is addictive. Only when you make money do you feel like a shareholder. You'll even feel terrible when you can't trade stocks on weekends, like someone watching TV is experiencing a power outage."
Mi Xiaoran ignored him and focused on watching the real-time price changes of Yanzhong and Hualian on her computer screen.
Suddenly, both stocks experienced unusual movements: Yanzhong fell by 2%, and Hualian fell by 4%.
Zhang Shihui was also watching closely, afraid that she would get anxious, so she immediately reminded her.
"Xiaoran, don't worry, please don't worry. You're just unlucky; the stock dropped as soon as you bought it. Wait a little longer. In my experience, I guarantee it will rebound. Don't worry, I also have these two stocks; I've already invested at least a few hundred thousand yuan in them. How much did you buy? No matter what, I'll be there for you."
Unexpectedly, Mi Xiaoran was not in a hurry at all. Instead, she took out another authorization form, filled it out again, and then made another purchase.
Zhang Shihui couldn't believe it; in less than five minutes, Mi Xiaoran had actually learned how to add to her position without any instruction.
Mi Xiaoran, however, seemed to have read his mind. She said, "Don't treat me like a complete novice. I learned a method in the US: divide your funds into small portions. Every time the price drops by a certain amount, you double your investment. Then, as long as it rises even a little, you can easily make up for the losses. If it recovers, you'll make a profit. I just placed an investment of 20,000 yuan on each stock. Now that Hualian has fallen a lot, I'll add another 40,000 yuan to my position. Let's see if this method really works."
Believe it or not, perhaps it's because newbies have a protection period, or perhaps Zhang Shihui is indeed very accurate in predicting the numbers.
Both Yanzhong and Hualian fell to a certain level and then stopped falling. Then, near the midday close, Yanzhong even turned positive, turning from a maximum drop of 3% to a gain of 1%.
Hualian simply pulled out a big positive line, turning a 5% drop into a 7% rise. Mi Xiaoran decisively closed out the 40,000 Hualian position she had added.
Even without counting the unrealized profits in the books, I already pocketed 4,500 yuan in just one morning.
The key point is that after she bought it, Hualian started to decline, and by the midday close, Hualian's gains had shrunk to around 4%.
Mi Xiaoran filled out another order for a position of 20,000 yuan, based on the current price of Hualian being two points lower.
If I successfully add to my position in the afternoon, it will genuinely lower my cost basis.
Zhang Shihui was completely stunned by this incredible maneuver.
Even someone who considers himself an expert has never seen anyone so accurately time arbitrage in intraday trading.
He couldn't help but admire her immensely, regarding Mi Xiaoran as a complete genius.
"You're amazing, girl! You're absolutely incredible!" Zhang Shihui exclaimed involuntarily.
"Keep your voice down! People will think I made a fortune!" Mi Xiaoran said to him. "You only made a few thousand yuan. You made dozens of times more than me."
"That's not how it works!" Zhang Shihui's eyes widened. "I earn a lot, but I also lose a lot of money. The way you trade is much less risky than mine. Your operations are so stable. Compared to your stock trading method, I'm starting to doubt that I know how to trade stocks. I have to try it this afternoon."
“Okay, then you can try it this afternoon too.” Mi Xiaoran said smugly, “I’m not keeping my knowledge to myself. I’ll definitely tell you when I’m done eating, we can go together.”
It must be said that after several transactions in the morning, Mi Xiaoran's thoughts did indeed change, just as Zhang Shihui had said.
For her, stock trading is indeed a very peculiar experience; in addition to making money, it also gives her the feeling of having something to do.
The kind of way to make money by just watching stock price changes on a screen is indeed easy, and the returns are indeed high.
“Okay, let’s go eat now, and we’ll continue cooking this afternoon.” Zhang Shihui said, standing up, and added as if she wasn’t satisfied, “Don’t try to pay the bill later. Just for teaching me this method, I have to thank you properly.”
The investors in the hall gradually left.
To the left of the securities company was a restaurant called Good Luck. Mi Xiaoran followed Zhang Shihui into the Good Luck restaurant.
The restaurant is doing very well; it's completely full.
There was actually a wait for tables here; Mi Xiaoran and Zhang Shihui were seated at the eighth table.
“Most of the people eating lunch here are stock market investors,” Zhang Shihui told Mi Xiaoran. “This restaurant makes its fortune from the stock market. I heard that nobody comes here to eat on weekends.”
"When business is bad, fewer people come here to eat, right?"
Zhang Shihui nodded, "That's right, at the end of last year. There were hardly any customers here all day, maybe two or three tables. It's rare to see them today either, probably because most people made money today."
A young lady came in and asked if we wanted to order in advance.
Mi Xiaoran picked up the menu and found that it was all home-style dishes, but the prices were also home-style, at least one-third more expensive than restaurants of the same level.
She shook her head in considerable dissatisfaction. "Isn't this just taking advantage of someone's misfortune? I hope their food is really delicious."
"Hey, don't get your hopes up too high. This place is just convenient. If you're really looking for a good meal, you might as well go to Alan's Restaurant. It's just because it's too much trouble. Even though it's only a kilometer away, driving is too congested and walking is too tiring. When you get there, you have to wait for the food, and it wouldn't be good if it delayed the afternoon market opening. Just make do with this meal. To be honest, if you really make money in the stock market, people like to celebrate, but it's usually the dinner in the evening."
Zhang Shihui tried to be frank, saying, "But things will be better in the future. I heard that the business department will be providing meals. From now on, VIP rooms will have free meals, and the business department will provide free boxed lunches. It's more like having more options."
"Boxed lunches?" Mi Xiaoran suddenly had a flash of inspiration. "Hey, what do you think? Should I suggest that A-Jing Cantonese open another restaurant around here? We could also discuss providing boxed lunches with the securities company. Anyway, she was kicked out of Dongsi, so it's a good opportunity for her to come back and compete. I think a restaurant here would be a huge hit."
"Of course! Then my stomach will be saved too."
Zhang Shihui's eyes lit up. "Sister, I'm not saying this to be mean, but you're really smart. I never thought you could run a restaurant while trading stocks. You're so much better than me. I can only eat from one end, but you eat from both."
To everyone's surprise, Mi Xiaoran chimed in, "Mr. Zhang, you're being too modest. I run a restaurant, of course I need your wine. It's a win-win situation for us."
This time, Zhang Shihui couldn't help but burst into laughter. "Yes, yes, it's a win-win situation for us." (End of Chapter)
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