Rebirth of the Capital Legend

Chapter 265: The confidence of many short-selling investors is shaken!

Just when Su Yi persuaded several leaders of Huayin International Asset Management Institution to enter the market to short the British pound exchange rate and help hold back a number of long institutions in the market that were continuously forcing shorts.

Domestically, in various financial circles.

Previously, many retail investors, hot money, and private equity institutions had rushed into the pound exchange rate market to short sell after Su Yi's online call.

At this time, faced with various rumors circulating in the market about the imminent liquidation of the main fund product "Huayi Capital Chengyuan No. 1", Su Yi's mental confusion, and the pound sterling exchange rate trend that was still fluctuating upward under the long squeeze, it was obvious that he could not bear it anymore.

"Oh, it's too difficult. The foreign exchange market is not a game for humans. I am so depressed by the losses."

On a domestic online foreign exchange investment discussion platform, many investors who participated in speculative trading of the British pound exchange rate lamented.

"The name 'Demon Pound' is indeed well-deserved. It is so difficult to grasp."

"The 1.5400 level has been lost and regained several times. Judging from the market trend, the bulls' offensive has not weakened. It is estimated that the pound exchange rate will continue to rise in the future."

"Alas, I followed Mr. Su to short sell, and my losses have exceeded 50% of my principal. What should I do now?"

"Mr. Su is really good at the stock market. Whether it is the performance of his own operations or the performance of the newly established private equity fund, they are all unique in the industry. However, as for the foreign exchange market... I feel that Mr. Su still doesn't have a good grasp of it!"

"In the international financial market, Chinese institutions have never won in the battle between long and short positions. Sigh..."

"It looks like Mr. Su will be forced to stop losses and cover his positions this time."

"The current situation is no longer as simple as stopping losses and covering positions. Once the main funds of 'Huayi Capital Chengyuan No. 1' managed by Mr. Su intend to withdraw, as he covers his huge short positions, the bulls in the market will definitely accelerate the squeeze on the pound exchange rate, causing Mr. Su's losses to expand rapidly."

"I heard that the fund managed by President Su has lost more than $3 million. $3 million..."

"There have been a lot of rumors about President Su in the market recently. It's hard to tell what's true and what's false."

"It feels mostly like it's real to me."

"Is it possible that Mr. Su is destined to fail in the pound exchange rate market this time?"

"I don't think it's necessarily true. The logic that Mr. Su used to say that he was bearish on the pound exchange rate has not been disproven so far. I don't believe that Mr. Su will go bankrupt."

"What's there to be afraid of? In the past few trading days, the exchange rates of all non-US currencies have been falling. I don't believe that the exchange rate of the pound can move independently. I will continue to increase my short position. This time... I must stand with President Su."

"Anyway, I firmly believe in Mr. Su. Mr. Su's ability to make money is definitely not comparable to those state-owned asset traders who were easily harvested by foreign institutions in the international financial market in the past. Moreover... Mr. Su has hundreds of millions of dollars in his hands and is openly shorting. He is not afraid of such a large amount of funds, so what should I be afraid of? At worst, my account will be liquidated again this time. Anyway, it's not the first time that it has been liquidated."

“I feel that the possibility of Mr. Su’s position going bankrupt is not high.”

"The pound exchange rate is still under great pressure around 1.5400."

"I don't believe that the pound exchange rate can deviate from the euro exchange rate trend and strengthen on its own. The euro exchange rate has fallen a lot recently, and hasn't the Federal Reserve already made hawkish remarks, saying that it will start a rate hike cycle in the near future?"

"Yes, the euro is weaker, so why is the pound stronger?"

"I heard that the Bank of England is conducting open market operations. With the intervention of the central bank, it is not impossible for the pound exchange rate to climb to 1.5500 or even 1.6000 in the short term."

"Alas, this time President Su is facing a counterparty that is very likely to include the Bank of England."

"If the Bank of England stabilizes the exchange rate through continuous market operations, it seems that there is really no hope for President Su to leave the market safely!"

"I don't know if you have noticed a problem. In the current pound exchange rate market, the net long position is so large. What is the driving force for the pound exchange rate to continue to rise? You know... in the exchange rate market, the purpose of many investors' transactions is speculation. At present, many of the longs in the market are holding profits. Once these people feel the pressure of the pound exchange rate rising, they will definitely realize their profits quickly. The covering of these net long positions is also equivalent to the impact of opening short positions in the market, which will also seriously suppress the upward trend of the pound exchange rate."

"According to what you said... the probability of the pound sterling exchange rate going down is still much greater than the probability of it going up?"

"That's true. I think President Su is right to insist. In the current pound exchange rate market, the potential short-selling force is actually far greater than the long-selling force."

"Oh, forget it. There's no need to analyze it so much. I believe that Mr. Su will never gamble his entire fortune without any certainty."

"It's okay to continue to gamble with a small position."

"Anyway, I just followed Mr. Su and continued to increase my short position."

"Even if I don't short, I can't go long at this time. I can't stand in the opposite position of Mr. Su. Damn it... I've long been fed up with these arrogant foreign institutions. I hope that this time Mr. Su can blow up their positions."

Accompanied by many discussions about Su Yi on the Internet.

In some internal groups of the speculator circle, such as the internal group of the 'Fushan Group' speculators who had previously followed Su Yi to short the pound exchange rate.

Li Jinshi, who had taken some short positions on the British pound exchange rate, was obviously a little shaken at this time. He couldn't help but sigh in the group: "It turns out that you can't take it for granted when you are not familiar with things and unfamiliar fields. I lost nearly $50 on 25 short positions on the British pound exchange rate."

"So exaggerated?" Chen Guiyun was shocked. "It seems that the market rumor that the short positions of the British pound held by the main fund product "Huayi Capital Chengyuan No. 1" managed by President Su have lost a total of more than 3 million US dollars is not groundless."

"Based on the size of Huayi Capital's short positions of at least 10 lots, it is entirely possible that it will lose more than $3 million," Li Jinshi said. "It feels like this time... our President Su will have to suffer a lot in the pound exchange rate market and be drained of blood by foreign institutions before he can get away with it!"

"A loss of $3 million!" Chen Guiyun sighed. "It would be a huge loss for any institution."

"I'm afraid it's not as simple as just breaking a bone." Liao Guoxiang responded at this time, "If Huayi Capital completely fails in this battle in the pound exchange rate market and exits with a huge loss, judging from the recent crazy financing signs of our CEO Su in the market... once his position is liquidated, the debt crisis will erupt instantly. It can be predicted... this Huayi Capital, which has just been praised by a group of people in the Magic City financial circle, is on the verge of collapse and bankruptcy."

"Shouldn't it be?" Li Jinshi said, "The current 'Hua Yi Expedition No. 1' fund is still operating normally, and the performance report released last week is still the best among similar fund products in the market. It's hard to comment on Mr. Su's gamble in the foreign exchange market, but... his stock investment ability, his ability to see opportunities in the domestic stock market, and his ability to grasp the main line are still top-notch in the industry. No one can deny this."

"No one denies his investment ability in the stock market," Liao Guoxiang said. "It's just that the danger of the foreign exchange market is far more exaggerated than we all think. Anyway, I don't think he can get away with it unscathed."

"Alas... In this situation, it is basically impossible to get out of this unscathed." Li Jinshi said, "I guess Huayi Capital is about to stop loss, right? Damn it... I won't hold the order anymore, I'll stop loss first."

"I don't think so." Chen Guiyun pondered for a while and said, "I always feel that this is a trap." "Trap?" Li Jinshi was stunned, "What trap?"

Chen Guiyun replied: "It feels like a trap to lure more investors into buying. The entire market is bullish, which I find very abnormal. And judging from Mr. Su's previous operations in the domestic stock market... he is not someone who is slow to perceive the market and does not know how to stop losses. I always feel that he is holding on to such a huge loss and is still shorting the pound exchange rate market. He must have a firm reason and underlying logic."

"Even with the underlying logic, it is difficult to shake the trend of the foreign exchange market." Liao Guoxiang said, "The foreign exchange market is often trading hundreds of billions or trillions of dollars. The little money in Huayi Capital's hands alone cannot move the market. What's more... I heard that the Bank of England has already left. Facing a large central bank, how can a counterparty institution resist when the other party has all kinds of trump cards?"

"What Brother Liao said...does make sense." Li Jinshi nodded slightly.

"If you lose money in the foreign exchange market, you lose money. Stop the loss quickly." Liao Guoxiang said, "Just take it as a lesson. It is still safer to trade in the domestic stock market."

"Alas..." Li Jinshi sighed softly.

Then, he closed his 50-lot short position on the foreign exchange trading software.

And when he had no choice but to stop loss and close his position.

At this moment, they are among the main hot money group of 'Magic City Super Short Gang'.

Xu Qiao looked at his short position of up to 100 lots and the huge floating losses in his account, and felt very troubled.

"Lao Zhang, Lao Wu, Brother Chen...how much did you lose?" Xu Qiao asked everyone in the group.

Lao Zhang responded: "Almost $60, alas... a house in Shanghai is gone."

"I'm fine. I don't hold many short positions." Old Wu replied, "I lost tens of thousands of dollars. I just considered it as supporting Brother Su."

Brother Chen replied: "I have already stopped the loss. I really don't understand the foreign exchange market. Besides, the impact of my position on Brother Su's position is probably not even negligible."

"Alas..." Xu Qiao sighed, "This foreign exchange market transaction seems simple, but it is actually extremely dangerous. These long institutions that continue to squeeze out short positions are really crazy."

"The bears will not stop until the bulls are gone." Old Wu said, "I feel that at this time, the bulls will not stop until the huge short positions held by the 'Huayi Capital Chengyuan No. 1' fund managed by Brother Su are liquidated."

"Are our Chinese-funded institutions really no match for these foreigners in the international financial market?" Lao Zhang said in obvious dissatisfaction, "This is really weird."

Brother Chen's emotions did not fluctuate much. He replied, "It can't be helped. Our capital volume cannot match theirs. The market pricing power is also in their hands. How can we play by their rules? This time, Brother Su... I'm afraid it will be difficult for him to get out of this unscathed."

"Don't even think about getting away with it." Old Wu said, "I looked at the news on the Internet. It seems that everyone is waiting for the 'Hua Yi Cheng Yuan No. 1' fund managed by Brother Su to go bankrupt."

"Will Brother Su really go bankrupt?" Xu Qiao asked.

"It's hard to say." Brother Chen responded, "The current market situation has already fully oriented towards bulls. Next... we can only hope for a miracle."

As he spoke...

The global trading market has entered the US trading session.

The British pound exchange rate, which had been fluctuating around 1.5400 for almost a day, began to break through the short-term volatility platform under the strong market bullish force and attacked above 1.5420.

At the same time...as the UK's Brexit referendum on June 6 is getting closer.

It is also because of the awareness that more and more funds are experiencing extreme market fluctuations in the pound exchange rate market.

As a result, more and more speculative funds and foreign exchange speculative traders began to pour into the pound exchange rate market at an accelerated pace, causing the frequency and amplitude of pound exchange rate fluctuations to become increasingly violent, and also causing the number of open long and short positions in the market to further increase sharply.

However, no matter how the short-term intraday trend of the pound sterling exchange rate changes.

None of this scared Su Yi off from his determination to short the pound sterling exchange rate.

On June 6, when the pound sterling exchange rate hit a new high at 15, Su Yi further increased his short position in the main fund product 'Hua Yi Cheng Yuan No. 1.5440' to 1 lots, which was only 16 lots away from his planned 17 lots.

"There is still one week left..."

Su Yi stood in the trading room, staring at the rapidly changing trend of the pound exchange rate on the big screen in the trading room. His eyes were sharp, and he secretly calculated the time. He instructed Qu Zecai: "Manager Qu, for every 20 points that the pound exchange rate breaks upward, increase the short order volume by 5000 lots until the pound exchange rate reverses its trend."

"A 20-point grid-based strategy for increasing positions?" Qu Zecai responded, "Boss Su, isn't this too frequent?"

Su Yi smiled and said, "It won't happen often. Just follow this strategy. If nothing unexpected happens... the 1.5500 mark will be the last retreat mark for the bulls in the market."

"Okay." Qu Zecai responded.

He didn't understand how Su Yi made his judgment, but under the current situation, he could only choose to believe Su Yi.

Just when Qu Zecai responded to Su Yi and decided to carry out the plan, Su Yi's cell phone rang.

Su Yi took out his phone and took a look at it. He answered the call with a smile. The voice of Zhang Yanshun, general manager of Huayin International's institutional asset management business, came from the receiver. The other party smiled and said, "After my application to the leader, the leader decided to give our organization the autonomy to invest in the foreign exchange market."

"Okay." Su Yi said excitedly, "Thank you, Mr. Zhang, for your help."

Zhang Yanshun laughed and said, "Boss Su, please contact Xiao Kong and Xiao Meng directly later."

As he said that, he sent the cell phone numbers of his two capable subordinates to Su Yi via text message.

Su Yi contacted the other party through the message the other party sent him, and then spent more than an hour asking the company's network technology department personnel to establish instant network communication between the two institutions, so that the two institutions can achieve coordinated attacks in seconds at the moment of the transaction.

(End of this chapter)