Rebirth of the Capital Legend

"That's not the case," Liao Guoxiang said. "If there are relatively high-certainty medium- to long-term opportunities, it's still much less stressful than ultra-short-term investments. Furthermore, these two trading models aren't contradictory. You can also engage in short-term trading while investing in medium- to long-term stocks.

I just think that in today's situation, the pricing power in the market has been transferred to the hands of institutions.

In the subsequent market trends...

It is very likely that the short-term trading ecosystem will get worse and worse.

On the contrary, there will be more and more fund groups focusing on the medium and long-term investment areas of the market.

By then, if you are not used to this model or do not realize that the core pricing power of the market has been transferred to the hands of institutions.

If you keep getting stuck in short-term trading in the market, I'm afraid your future living space will only get smaller and smaller.

After all, when more and more capital groups in the market shift to the mid- and long-term individual stock areas, the number of capital groups focusing on short-term speculation will become smaller and smaller.

By then, the number of funds willing to undertake short-term trading will decrease, and the short-term ecology will become worse and worse.

After all, the popularity of the market depends to a certain extent on the liquidity of market funds. If the market liquidity is insufficient, the short-term ecology will naturally fail.

In the future, it is expected that the short-term market ecology will become worse and worse.

So, I think it is necessary to change the trading model and make medium- and long-term investments, or to focus part of your attention and energy on many medium- and long-term growth stocks and high-performance weighted stocks in the market. Moreover, the friction cost of short-term trading is too high.

Profit here, loss there...

In the end, if you extend the timeline, the final rate of return is actually relatively low.

Especially as the amount of funds has grown, with relatively scarce liquidity, it is no longer possible to concentrate all positions on one or two short-term stocks."

"Lao Liao, this shift in your trading strategy is indeed necessary given your current capital," Chen Guiyun said. "However, for Lao Li and me, continuing with short-term trading is undoubtedly the best way to increase our capital returns. If we really want to shift our trading strategy, we should wait until our combined capital exceeds 10 billion. With our current capital, we can still make the transition within the short-term trading model."

"That's right," Li Jinshi replied. "It's true that different amounts of capital will lead to different trading strategies. If the amount of capital is too large, then you really have no choice but to switch to medium- and long-term investments. For example, if President Su continues to stick to his previous trading model,

Even if you create 10 concept leading stocks in a short period of time, you can make double the profit on these 10 concept leading stocks.

That compares to the size of his entire fund product.

The little money earned is just a drop in the bucket, and the increase in the net value of the entire fund product is very limited.

Is this why the larger the amount of capital, the higher the requirements for trading strategies, and the harder it is to increase net worth? "

"That's true," Chen Guiyun said. "However, even though the capital volume of Mr. Su's two affiliated seats, Fuxing Road and Huayi Capital, has already been enormous, the net value growth hasn't slowed down. Looking at Huayi Capital's public net value in the first half of the year, it seems to have outperformed 99% of investors in the market. There shouldn't be any problem, right?"

Li Jinshi said, "I can be a bit bold in my guess. I think the net asset value trend of Huayi Capital's related funds in the first half of the year could instantly outperform 99.9% of the current investor group in the market. Let alone similar institutions, even within the speculative capital market, there are only a handful of people who can outperform the returns of Huayi Capital's fund products, or perhaps only a few individuals, right?"

"Anyway, I have never run away." said Chen Guiyun.

Li Jinshi responded, "There's no doubt that my account's net asset value performance in the first half of the year didn't even surpass the net asset value of Huayi Capital's products. What about Lao Liao? Have you ever surpassed that?"

Liao Guoxiang responded, "No, having missed the early-year rally in liquor and white goods, and the major infrastructure rally of the first two months, it's difficult to outperform the net asset value yield of Huayi Capital's fund products. The reason Mr. Su of Huayi Capital has such a significant influence in the A-share market and such a strong following among domestic institutional investors is primarily due to his exceptional strength and investment prowess. He's truly one-of-a-kind."

"There should be no doubt about that," Chen Guiyun said. "No one in the industry would doubt Mr. Su's investment ability and ability to judge the market, right?"

"Indeed." Li Jinshi nodded and said, "They've consistently dominated the early-year market trends for liquor and white goods, tapped into the 'big infrastructure' theme, and driven the market trend for Oriental Yuhong. That's truly impressive. The key is that this institution is now unique in the market. Previously, everyone thought that Mr. Su of Huayi Capital, after taking charge of the fund products, would adopt a trading style more inclined towards hot money. Unexpectedly, Mr. Su's investment style, after taking charge of the fund products, has actually been traditional. He primarily focuses on exploring expectations of reversals in industry fundamentals and driving the performance of leading stocks in these sectors. He invests in industry-focused mainline investments rather than speculating on individual stocks, and doesn't appear to rely on insider information."

"When investing in core industries, insider information is naturally useless," Chen Guiyun said. "In my opinion, those who use insider information to hype restructuring are all on the side."

"That's true," Li Jinshi said. "If you want to truly grow, you still have to stay away from insider information!"

"You can't say that playing with insider information and speculating on restructuring are just insider trading," Liao Guoxiang said. "There are thousands of investment paths, but the key is to find the one that suits you best. Only the one that suits your personality is the best investment path for you."

"Haha...you can say that." Li Jinshi nodded.

In the 'Fushan Group's' main speculators group, several core main speculators discussed the market trends and the expected subsequent market trends.

As market trading hours continue to advance...

The major core hot themes of the market, including the new energy industry chain, large infrastructure, smart phone industry chain, film and television media, Internet software, Internet applications, white goods, liquor and other related sectors, and their corresponding related stocks, are still siphoning the buying funds in the market and continue to strengthen.

After the market completed the initial volatility, it continued to strengthen again, creating a strong profit-making effect on the market.

At this moment, the discussions of countless retail investors gathered on major platforms across the Internet are becoming more and more intense, and the market sentiment feedback is rapidly rising in the bullish direction again.

"Holy crap, this check for 'Huawen Online' really hit the upper limit! It's really strong. Yesterday it hit the upper limit, and today it opened directly higher and fluctuated to hit the upper limit, and then set a new high. There's room for a rebound of over 30 points in two days. Sigh... It would have been great to buy the dip when it hit the lower limit yesterday. Such a good opportunity, but I didn't seize it."

"Me too! What a shame! Last Friday, I saw 'Huawen Online' hit its lower limit and was thinking of buying the dip. But as soon as I hesitated, the price quickly went back up. It really is... I'm destined to never make money!"

"I just sold it this morning. I thought it would probably pull back today, but it went straight up like this. What a shame! I sold it right at the upper limit."

"It's good to be able to make money. I paid a lot of money for this check from 'Chinese Online'."

"I also cut my losses and left. The trend last Friday was so scary. Damn, I just cut my losses and it reversed. It's so infuriating."

"I didn't make any money from such a great stock. I'm speechless."

"A winning stock is one you should hold onto tightly; you need to have more confidence in it." "Indeed, leading stocks require faith."

"Now, after reaching a new high, Huawen Online has become the absolute core leader of the entire market's 'emerging industry chain,' right?"

"Need I say more? He's definitely the absolute core leader!"

"I originally thought that after Huaxin Cement, Beijiang Communications Construction, and Oriental Yuhong hit their daily limit, Huawen Online wouldn't be able to break even. Unexpectedly, it defied the selling pressure and hit the daily limit. It's truly resilient. I feel like the second wave of the main upward trend has already begun."

"The second wave of the market is certain to hit either the upper or lower limit. This check from 'Huawen Online' is already full of demonic potential."

"It is definitely the 'big monster stock' in this round of market."

"Looking at the market trend of this check, it has already boosted the entire film and television media, internet software, and internet application sectors."

"This is the charm of the core leader, which can drive the overall recovery of the main line market."

"Indeed, it is still comfortable to hold the leader. As long as you hold on to the leader and have a certain degree of faith in the leader, it is difficult to lose money."

"Well, look at the trend of Oriental Yuhong's stock price. It's really exaggerated. There's basically no decent pullback. It just keeps rising."

"Otherwise, why would you say President Su is so awesome?"

"Now we should focus on Ganfeng Lithium and Tianqi Lithium, right? I feel these two stocks represent the future, and there's a high probability that they will replicate the performance of Oriental Yuhong."

"Haha... I think so too. After the 'new energy industry chain' line reverses, these two stocks will definitely become the core leading stocks of the main line."

"Is there no one who's optimistic about the Huaxin Cement check? It's actually quite good."

“It’s good, but the underlying logic and expectations are a little worse than those of several other leading stocks.”

"Also, along the 'Apple industry chain' line, the check from 'Changying Precision' is also quite good."

"Isn't the strongest company in the 'Apple industry chain' the check from 'Lixun Precision'?"

"I feel like the market capitalization of 'Lixun Precision' is a bit too big, right? I don't think it's going to rise much, and it's not going to be easy to speculate on with funds."

"With a market capitalization of less than 350 billion, it's actually not that bad."

"Well, compared to the check-value stock 'Oriental Yuhong', the market capitalization is only slightly larger, but the circulating shares are about the same."

"It still depends on the specific capital situation on the market."

"That's true. Today, there's no doubt that the combined efforts of various market funds are still mainly concentrated in the 'new energy industry chain' and the main area of 'large-scale infrastructure'."

"In fact, the main trend of the weighted main line in the market main board direction today is also quite good."

"Are you talking about the liquor and white goods sectors? I feel like these two trends are the result of institutional investors converging and driving market trends after Mr. Su increased his holdings significantly last Friday?"

"The market for the main line of weight has actually been quite good, but the fluctuations seem too small."

"Yes, these are the areas where institutional investors mainly flock. We retail investors only have a few dollars. We can't make much money by buying these heavyweight leading stocks. It's better to pay less attention to them."

"Haha...that's true."

"It's better to hold on to the core concept leading stocks in the market. I think concept leading stocks are the most comfortable to hold."

"Now that 'Huawen Online' has hit its limit up, the market will probably follow suit and hype up 'Huawen Media' and 'Yue Media,' right? Are these two trend-following stocks a good buy now?"

"It's definitely worth buying, but I suspect the market's momentum won't be as strong as the 'Chinese Online' check."

"Fuck! I was just saying that the check for 'Chinese Media' has already been drawn."

"Damn it, it's already been pulled out of deep water. Sigh... I should have bought the check at the bottom just now, what a pity... I should intervene decisively now and do it directly."

"I just filled my position with one click."

"I feel that if the trend of the 'Chinese Online' check is good, the market of the 'Chinese Media' check will not stop. The trends of the two checks are still quite correlated. In other words, if you buy the 'Chinese Media' check, you have to see if the 'Chinese Online' check is in a bad mood."

"There's nothing we can do. Don't we look at who's the leader? This definitely depends on their mood."

"Oh shit, the 'Chinese Media' check has gone up 3%. Isn't it going to hit the daily limit today?"

"It's hard to say. Currently, the film and television media, internet software, internet applications... these major sectors have all emerged stronger, and the overall market sentiment has clearly reversed..."

Across all major stock investment platforms on the Internet, countless retail investor groups are engaged in heated discussions.

As market trading hours continue to advance.

The Shanghai Composite Index has already crossed the 3100 point mark with large volume. At the same time, the ChiNext Index, the CSI 500 Index, the All-China Securities 1000 Index and other major market core indices have also seen their market gains continue to rise. The investment sentiment of the entire market and the investment confidence of the majority of investors are constantly recovering.

Many stocks in the market have recovered their previous losses and reached new highs for the period. (End of Chapter)