After divorce, I can hear the voice of the future

Chapter 28 London Gold Market

In the new week, China Online welcomed two daily limit increases, with the share price reaching 41.65 yuan, setting a new historical high.

It topped the Dragon and Tiger List three times, becoming the hottest stock in the market this year after Baofeng Technology.

“The sound will not disappear even if the prediction is wrong, but the result will be biased due to human factors.”

In the past two days, Lu Liang chose to hold empty positions and wait and see. Although he missed two daily limit increases, he indirectly confirmed this conjecture.

The information provided by the voice is not 100% accurate, because its existence is the biggest uncertainty factor.

Because Lu Liang made a profit of 1200 million, he almost crashed the market twice, liquidated his stocks violently and cashed out at high prices.

The main forces can only be forced to raise the stock price higher, otherwise their funds will easily be trapped in it.

“The sound would start in the early hours of the morning.”

"The triggering condition may be related to the matter involved?"

Lu Liang wrote down his experience in a notebook, then tore off the page and threw it into the ashtray.

He lit a cigarette, took a deep breath and exhaled the smoke, watching the flame dance in the ashtray.

Until the paper ball burns out.

At night, Lu Liang was alone in his study, browsing financial news and waiting quietly for the early morning bell to ring.

Today, the Shanghai Composite Index achieved four consecutive positive days and officially broke through 5100 points. The entire market is going crazy.

My former colleagues in the circle of friends were also posting photos of the long queues at the Housing Authority.

This grand occasion lasted for several weeks, and it was a gathering of people who sold their houses or mortgaged their properties to speculate in stocks.

“Can this kind of grand occasion be seen in China?”

Lu Liang has been holding empty positions and waiting these days, so he has plenty of time to study the market.

He is also a senior real estate professional and is well aware of the importance of real estate to the domestic economy.

It can be said that the three major financial sectors combined are not as important as a hair on the real estate market.

For a house with a market price of one million, the potential tax is as high as more than half a million. After deducting the labor cost, the rest is the real estate development group.

Real estate is related to too many industries, such as building materials, home furnishings, home appliances and hundreds of other industries, and it also creates a large number of jobs.

Nowadays, everyone is selling their houses to invest in stocks, or using the money for buying houses to invest in stocks. Is this really what the country wants to see?

I'm afraid not necessarily.

“The bull market should be coming to an end.”

Lu Liang put out his cigarette and took a sip of coffee.

The clock struck twelve in the morning, and it was as if the voices from another world were echoing in my mind.

[June 6, London Gold, 5 points]

Lu Liang was stunned. He had thought of many possibilities, but he didn't expect it to be international spot gold.

Because it originated in London, it is called London gold. It has a history of more than 300 years and is the world's largest spot gold trading market.

The daily trading volume is about 20 trillion US dollars, equivalent to the size of 25 A-shares, so no consortium or institution can manipulate it artificially, and it depends entirely on the spontaneous regulation of the market.

"The current price is 1347.1200 points, which is an increase of nearly 160 points." Lu Liang narrowed his eyes, with excitement flashing in his eyes.

Since ancient times, gold has been the most stable primitive currency. Unless there is a clash of powerful countries in the world, or a financial crisis occurs and large funds seek safe havens, the price of gold will only rise steadily with inflation.

Because the fluctuation range is very small, we provide a minimum leverage of 100 times, and there will be four digits after the decimal point.

Although the increase of 160 points is not significant, if it is handled properly, it is not impossible to turn into billion.

This also indirectly confirms Lu Liang's speculation that the domestic bull market is coming to an end, and large funds are flowing into the gold market for risk aversion.

As the night deepened, the light in the study was still on.

Lu Liang never put down his cigarette and sipped his coffee while learning about the trading rules and methods of London gold.

London gold is traded differently from A-shares. To be more precise, A-shares are different from financial markets around the world. A-shares are the only market in the world that uses T+1 trading. If you buy today, you can only sell tomorrow. You can only go long, but not short.

Except for A-shares, all stock markets, funds, foreign exchange and other financial markets adopt the T+0 trading method, buying today and selling today, and can go long or short.

This trading method is good for institutions but not for retail investors. Although it was initially set up to protect retail investors, it was eventually exploited by institutions.

London gold is different from the domestic stock market. In addition to the T+0 trading method, there are also trading hours.

Trading is non-stop 24 hours a day, from Monday evening to Saturday morning, and the market is closed only on weekends.

Starting at 3:00 p.m. Yanjing time, it is divided into European, American, and Asian sessions, basically following the daylight hours of each continent.

The most active trading period of the day is from 10 pm to 5 am Yanjing time, and these seven hours account for almost half of the day's trading volume.

This period is the afternoon of the European session and the morning of the American session. The combined activity of the two far exceeds that of the Asian session.

At 3:30 in the morning, Lu Liang basically understood it. Although he still didn't understand a little, he planned to learn through practice.

Log into the brokerage account to exchange 400 US dollars, use times leverage, and decisively enter the London gold market.

The leverage ratio of London gold is high. On the one hand, the fluctuation of price fluctuation is small, and on the other hand, the trading threshold is very high.

Each transaction requires a minimum of one lot, one lot equals 100 ounces, and 1 ounce equals 31.1035 grams of gold.

The current international gold price is 272 yuan per gram, 100 ounces equals 3110.35 grams, and one lot costs 84.6 yuan, or 13.32 US dollars.

Lu Liang exchanged 10,000 US dollars, 5,000 of which were used as a deposit, and the other 5,000 were funds he could use.

After financing, $200 million can only buy 15 lots.

Lu Liang did not go all in as he did in the A-share market, but instead bought 5 lots to go long and wait and see the market conditions.

Every time the price dropped by three basis points, he would add another lot, because if it exceeded five basis points, his position would be liquidated.

If the margin is not enough, continue to add money to cover the position.

At five o'clock in the morning, although this wave of market trend had not started, there were already signs that the price of gold was rising slowly.

Lu Liang's total investment reached 1617 US dollars, of which was margin, and his holdings reached million US dollars.

1400 million is financing funds, and only 17 US dollars actually belongs to him. After deducting the principal, there is still a profit of 13.

"The exchange rate is 6.35, so I made over yuan?"

Lu Liang couldn't help but marvel at the money coming so quickly.

He basically didn't do anything, just added to his position when the price fell, and held on to it and waited and watched when the price rose.

However, there was one time when the intraday decline was huge, falling 4 basis points in an instant, and he almost went bankrupt.

Fortunately, the logistics department had sufficient ammunition, and Lu Liang quickly added another 20,000 yuan in margin to avoid forced liquidation.

High leverage is a game of heartbeats.

Pay full attention and don't be careless for a moment.

In early June, we gradually entered summer. At around five o'clock, the sky began to turn pale.

The trading hours of the American session are coming to an end and the market activity has dropped significantly.

Lu Liang rubbed his eyes and tried to stay awake, because the Asian session would take over next.

If his guess is correct, the Asian session during the day will be as active as the European and American sessions.

Lu Liang exchanged US dollars in advance, converting 584 million RMB into 92 US dollars, which he transferred all into the London gold account.

He still had more than four million available funds in his account, but he no longer had the money to exchange for US dollars.

After making all the preparations, Lu Liang walked out of the study, planning to take a shower, have breakfast, and recharge his energy.

Now that he has more than 90 yuan in margin in his account, he doesn’t have to worry about intraday fluctuations leading to a margin call.

(End of this chapter)