Starting with a fully invested A-share portfolio to become a capital...

Chapter 289 The Sharpest Sword for Retail Investors—Zhang Yang

Monday, December 11nd.

On the last trading day of November 2009, "cattle farmer" Li Daxiao released his cattle-raising video early in the morning, which boosted the bullish sentiment of thousands of retail investors.

[Comrades, good morning! We meet again on this beautiful morning. Haha, the A-share market will open in 3 hours. We can expect two major events to happen over the weekend: the Shanghai Clearing House will be officially established, and the top economic conference will provide development guidance, continuing to implement a proactive fiscal policy and maintain a moderately loose monetary policy. These two events will undoubtedly give our volatile A-share market a strong boost and give us confidence to win the "final battle of November".]

Comrades!
Friends!
It's time to fix bayonets!
Let's turn our resources into sharp blades, piercing the capital maliciously shorting the Chinese stock market. Go, Bayonet Bull! Let's launch the final battle of November!
Since November 24, when B shares were maliciously shorted by foreign capital, A shares have been in a continuous decline. On November 27, near the afternoon, it was even time to launch a battle to defend the 3000-point mark.

As November 30th marked the end of November 2009, Li Daxiao naturally hoped it would bring a decent rebound.

It is worth mentioning that, according to incomplete statistics, A-shares tend to rise not only around major holidays, but also on the first day of the month and the last day of the month.

Why does this happen?

The underlying logic lies in the performance indicators of Huijin and China Securities Finance Corporation.

Whether it's before or after major holidays, or the first day of the month or the last day of the month, Huijin and China Securities Finance Corporation may slightly boost the market to boost their performance and create a facade.

Of course.

This is not absolute.

The stock market has no certainty, only randomness. Most ordinary retail investors can be called stock trading experts as long as they can control their win rate at 65%. If the win rate is above 70%, then it is at the level of speculative capital.

After seeing Li Daxiao's "cattle-raising video," individual investors were immediately excited and left comments in the comment section below the video.

[Gourd Brothers]: This round of A-shares was completely wrongly killed. Domestic investors are a bunch of useless people. When they saw B-shares being sold off in large quantities, they all ran away faster than Cao Cao. Damn it, in the end, it was the ordinary shareholders who bore the brunt.

[Looking at the pear blossoms reflected in the autumn water]: Comrades, comrades, Teacher Da Xiao is calling on us to take up arms! If you lose money, go to Yingda Securities and find him. If you jump off a building, take someone down with you!

[Old Monk Doesn't Take a Bath]: Hahaha, well said. Li Daxiao told us to get our hands on the bayonets. If we lose money, we should go to Yingda Securities to demand an explanation from him. If he doesn't have the money, we should make him pay with his body.

[Big Pancake is Delicious]: It's understandable for a woman to repay a debt with her body, but can a man do the same?

[The First Person to Perform Face-Changing in Sichuan Opera]: Who says it can't be done? You know Shaquille O'Neal, right? In Sichuan and Chongqing, he can only be classified as a mature woman.

Shortly after Li Daxiao posted the video, Hu Xijin and Zhou Runfa also posted on Weibo, stating that their strategy of increasing their holdings would never change.

[Hu Xijin]: I've been reflecting a lot this weekend. I was indeed too aggressive in the previous few trading days. I couldn't help but add to my positions as soon as the market fell, which resulted in me being trapped with tens of thousands of yuan. I've decided that I will add to my positions without thinking below 3000 points, and I will not buy a single share above 3000 points.

[Chow Yun-fat]: The more the stock price falls, the more aggressively you should buy in. The more you buy, the more it falls, so you buy more as it falls, and the more it falls, the more you buy. The more difficult it is, the more you should push it up. Only in this way can you make a lot of money and get rich!

Compared to Hu Xijin's state, Chow Yun-fat has completely "gone mad".

In his view, as long as he has enough capital and buys more shares frequently, he doesn't need to worry about losses, because a 3% rebound can make him earn back his principal and profit.

Those who gamble frequently know that Chow Yun-fat's state is called being "hooked".

When gamblers get carried away, they often use the excuse that they will stop after winning one round and never gamble again.

If you lose 1, bet 2; if you lose 2, bet 4; if you lose 4, bet 8. Many gamblers ruin their lives by being swept up in this "win one last time" mentality.

Noticing that Chow Yun-fat was not in good condition, his fans offered him words of advice.

[No Disease Under Heaven]: Brother Fa, don't get carried away. You've already lost over 60 yuan. Let's not be brand ambassadors for Tonghuashun anymore. Let's breach the contract. The money you've made isn't even as much as the money you've lost in the stock market.

[That Autumn]: Tong Hua Shun cleverly devised a series of schemes, and Zhou Runfa mistakenly went to the guillotine.

[Will there be any regrets?]: Stop it, Brother Fa. You're not cut out for investing in the secondary market. If you keep going like this, I'm afraid I'll see you in the tertiary market!
Perhaps even the official Tonghuashun team didn't expect that the spokesperson they invited would have such a blast, and even gradually become the "shape" of retail investors.

As the opening time drew closer, the Caiyan.com member channel also sent out push notifications, and at the same time, the Joker Speculative Capital channel posted the first trading strategy post from the "joker account" after the clarification of the controversy.

The decline in A-shares from November 24th to 27th was mainly due to policy uncertainty. For example, some financial media reported that China Bank, Bank of Communications, and China Construction Bank planned to raise approximately 100 billion yuan through A-shares or H-shares to supplement their capital in order to cope with the regulatory authorities' potential increase in capital adequacy ratio requirements. This directly triggered market concerns about the capital gap of banks after credit expansion.

To put it bluntly, the market is worried about a shortage of funds and liquidity. Coupled with the news that "the management is studying the launch of a large number of large-cap IPOs," these two rumors are interpreted as potential signals of a "draining effect."

However, the top economic meeting on November 28th clearly stated that in 2010, a proactive fiscal policy and a moderately loose monetary policy would continue to be implemented to maintain the continuity of macroeconomic policies. At the same time, several data released in November showed that the economic recovery was solid. For example, the CPI rose 0.6% year-on-year, ending 10 consecutive months of negative growth, and the PPI's year-on-year decline narrowed to 2.1%, indicating that deflationary pressure in the industrial sector had eased. The value added of industrial enterprises above designated size increased by 19.2% year-on-year, a new high since June 2007.

Information Summary:

1. There are no negative factors in the policy environment. In the coming year, fiscal and monetary policies will be proactive and moderately loose, with no risk of a shift in policy direction.

2. The economy continues to recover, with the value added of industrial enterprises above designated size increasing by 19.2% year-on-year, already returning to pre-economic crisis levels, providing strong support for the stock market rise.

3. Technically, the market is oversold. In four trading days, the Shanghai Composite Index fell from a high of 3361.39 points to a low of 3080.39 points, a drop of 8.36%. Although there was a slight recovery at the end of the trading day on the 27th, the four-day drop was still 8%.

4. The accelerated IPO process may lead to a shortage of funds, but on October 20, the China Insurance Regulatory Commission issued the "Notice on Regulating the Stock Investment Business of Insurance Institutions", which allows insurance funds with adequate solvency ratios to conduct normal stock investments, and raises the upper limit for corporate bond investments from 30% to 40% of total assets.

In addition, regulators have recently approved public fund sales qualifications for internet finance companies, meaning that public funds are no longer limited to subscriptions through traditional channels such as banks and securities companies, significantly lowering the barriers to entry for the capital market.

5. The Dubai World debt crisis triggered global market turmoil. Chinese financial institutions have quickly clarified that the risks associated with their business in Dubai are limited. For example, Chinese banks have stated that they do not hold any related bonds. In addition, on November 29, Abu Dhabi announced an injection of US$15 billion into Dubai World to initially alleviate its debt.

There are no negative factors in terms of policy, economy, technology, or capital flows. The external debt crisis has also been alleviated, making further declines highly unlikely. The above is for reference only and does not constitute any investment advice.
Since November 22nd, when "曜日之阳" posted a message accusing Zhang Yang of being a "malicious stock manipulator" on Fuchun Road, the "joker" account has not updated any posts. The appearance of this post instantly attracted a huge number of retail investors.

[30-year-old male chef]: Got it, I understand. The opportunity outweighs the risk. Joker, oh no, Fuchun Road, I'm going to go all out!
[Sunrise Never Meets Again]: What's with the names Fuchun Road and Joker? If the A-shares market goes up today, I'm willing to worship Zhang Yang as my godfather. I hope I can make some money and recover my losses today.

[Fishing Guy]: I have to say, Joker is the one with the best logic. He analyzed the policy, economic, technical, and financial aspects, and even the external factors for us. Unlike Li Daxiao, Zhou Runfa, Hu Xijin and others, who just blindly advocate for a bullish market. Especially Zhou Runfa, who lost hundreds of thousands of dollars in one go.

[Silent Alone on the West Tower]: I hereby announce that I have joined the "Rich Family Army". You damn retail investors, get ready for your grandpa West Tower to harvest your wealth!

[Little Tadpole]: West Tower, I'll fuck your mother!

[Silently Climbing the West Tower Alone]: No, I didn't do anything to you, did I? I was just joking around, @LittleTadpole.

[Little Tadpole]: A speculator who isn't criticized isn't a good speculator. Which famous speculator hasn't been criticized? I'm just letting you get used to it in advance, so you can understand my good intentions.

[Silently I ascend the western tower alone]: That makes sense…

Following the impact of Zhang Yang's speech yesterday, the public opinion surrounding the "Fuchun Road" seat has undergone a dramatic change.

Is it a bad bookmaker?
No! He was just a young man striving to change his destiny!
Zhang Yang, who came from humble beginnings and had no resources or background, has become a classic example of a stock market comeback, and many financial media outlets have promoted him in a positive light.

For example, the China Securities Journal ran a headline that read, "A young man born in 88 made a fortune of 50 billion yuan in nine months through the stock market," without mentioning the infamous reputation of "Fuchun Road."

Why do positive publicity?

The reason is simple: A-shares need to attract new retail investors. Only when the trading volume increases can more companies receive funding from the capital market.

At other times, official media might not have promoted it this way.

The problem now is that 2009 is too crucial. The economy just went through the crisis in 2007 and 2008, and industries are in dire need of rebuilding. In addition, 2010 is the final year of the 11th Five-Year Plan. The stock market should not be volatile, and it may even need to be further stimulated to ensure corporate financing and development.

Now, in the eyes of state media, Zhang Yang is like a lucky winner of the welfare lottery, and they promote him as someone who can increase the frequency of lottery purchases.

Is getting rich overnight only possible with the lottery?

That's not the case anymore!
The stock market can do the same!

Nine months, 270 days, even without deducting market closure days, 5 billion yuan averaged out to 18518518.52 Chinese yuan per day.

Earning 1851 million in one day for 270 consecutive days, who still says you can't get rich by investing in stocks?
The propaganda from official media and the flamboyant hard work completely changed the minds of retail investors.

Of course.

The most important thing is the 625 million-fold return.

Retail investors enter the stock market to make money; frankly, they're opportunistic and won't want to lose out on those who flaunt their trading strategies.

Even though some retail investors are still criticizing "Fuchun Road", they are being responded to by even more retail investors.

……

At 9:00 AM sharp, the FTSE China A50 Index futures listed in Singapore turned positive, rising by 1.7%, with a bullish candlestick soaring into the sky.

In an instant.

Countless retail investors were in an uproar.

[Little Darling]: Holy crap! Such a long bullish candlestick! It's going to rise until I'm dizzy and I'm screaming "Yamete!" today!
[Chinese Youth]: Yamete, yamete, don't go up too much, just 10% is fine, otherwise I'm afraid my securities account will be ruined.

[Ou Xiaodong]: Foreign investors are real beasts! After a series of sharp drops to shake out weak hands, if they start to pull back in a V-shape now, retail investors won't even have a chance to get on board.

Retail investors chattered amongst themselves, all eagerly awaiting the market opening at 9:15.

In contrast, Zhang Yang, who had successfully cleared his name, hummed a tune and leisurely made his way to the trading area on the 7th floor of Building A.

"Good morning, boss." "Good morning, Joker!"

"Haha, Joker, you've finally arrived! We thought you were going to participate in some kind of debate competition. Your oratory skills are so good; you can even turn black into white."

"Awesome Joker, he's redeemed!"

"This is the skill of top-tier speculative investors!"

As soon as they entered the trading office area, Zeng Lingshan, Feng Weiqiang, Liao Guopei, Lin Guangchang, and Chen Xiaoqun couldn't help but tease each other. They really didn't expect that Zhang Yang not only had outstanding trading talent, but also amazing verbal skills, and was able to wash away the bad reputation of "Fuchun Road".

Zhang Yang sat down at his seat, casually picked up the coffee on the table, took a sip, and then said unhurriedly, "Coming from humble beginnings, if you want to turn your life around, you naturally have to be ruthless. Retail investors are all ordinary people, which is understandable."

"Besides."

He smiled faintly and said, "These are all my personal experiences. There's no question of whitewashing. It's just that their perspective on me has changed. I am still me."

To understand a person, one cannot be too one-sided and only look at their strengths and weaknesses, as this often leads to unnecessary misunderstandings.

Take South Korean stars, for example. On the big screen, they may appear as pure and ethereal goddesses, but behind the scenes, who knows how many times they've slept with chaebols to climb the social ladder?

Don't think there are any exceptions. The Korean entertainment industry doesn't hide anything. Any male or female star without a background who wants to get resources has to do drinking with wealthy men as the first thing. Only by hooking up with a rich man can they have a chance to become a star.

Discovered by a talent scout?
This is almost non-existent in South Korea.

"No, boss, you're from a county town too?" Zeng Lingshan was extremely surprised. He hadn't expected Zhang Yang to have a similar background to him.

"Replacement guaranteed."

Zhang Yang smiled faintly.

"Look, look, look, this is what you call a top-tier speculator, capable of conquering even the most difficult situations alone!" Liao Guopei looked at Feng Weiqiang, Zeng Lingshan, and Chen Xiaoqun, seemingly suggesting that they should learn from Zhang Yang.

Lin Guangchang: "So it was firsthand experience. No wonder you spoke so well. Joker, you're really amazing. You managed to make it in a county town."

Many people don't realize the importance of urban platforms, assuming that children from Shanghai and rural areas are the same type of people. In reality, not only are their thinking diverged early on, but their cognitive levels are also on completely different levels.

Take stock trading as an example. Parents in Shanghai may be stock investors themselves, and they are happy to let their children get involved in the stock market early on, so that their children can further understand the workings of the world economy and improve their investment skills.

In contrast, rural children typically start playing the stock market at an age of 25 or older, because this is the age when they have the ability to earn money independently and can manage a certain amount of funds.

A comparison of the two reveals the difference. And this is just about stocks. In contrast, education, knowledge, and ability will generally lead to polarization.

The world loves to hear stories of the poor rising up because it is extremely difficult for the poor to do so. Every successful rise to success requires pushing the limits of human endurance in every aspect.

"It's all in the past, not worth mentioning. The A-share market is about to open. You guys continue with your day trading today, I need to write a market research report."

Zhang Yang issued the order.

In his speech yesterday, he promised retail investors that he would delve into the economic cycle, and he also planned to boost the market research report section and membership section of Caiyan.com with users when the website traffic was at its peak.

Of the four cycles, Zhang Yang is actually most concerned about the debt cycle.

Anyone with a formal financial background knows that the development of any economy involves mortgaging the future, and once the borrowing capacity is insufficient, the economy's development will stagnate.

Take Japan as an example. After the bursting of the real estate bubble, the space for borrowing quickly evolved from expansion to structural constraints. The core logic can be summarized as a long-term game between the continuous rise in government debt ratio and the deterioration of economic fundamentals.

In short, the bursting of the bubble severely damaged the balance sheets of businesses and households, forcing Japan to use fiscal stimulus to prop up the economy, which led to a continuous rise in the debt ratio.

However, the continued economic stimulus has not improved the Japanese economy. Their labor force has shrunk dramatically, and weak total factor productivity growth has constrained tax revenue growth.

In layman's terms, after the real estate bubble burst, Japan had to use fiscal stimulus to prop up the economy. However, as the population aged and the economic fundamentals continued to deteriorate, Japan had no choice but to increase stimulus, thus falling into a long-term struggle between the continuously rising government debt ratio and the deteriorating economic fundamentals.

"Roger that!"

"Good boss!"

"understand!"

Everyone responded one after another.

Liao Guopei glanced at the Huaguo Unicom account, which was showing losses, and asked in confusion, "Speaking of Joker, is there really any upside for Huaguo Unicom? It seems to be falling non-stop and about to break 6 yuan."

On November 11, the day the option was exercised, the "Zhangjiang gang" confirmed the anchor price with financial institutions in Hong Kong by phone and simultaneously bought 900 million shares of China Unicom. Subsequently, Asking Qiu Baoyu suffered a loss and used the 2.8153 million yuan cashed out from Haitong Foods to replenish his China Unicom position. Now, they have invested nearly 12 billion yuan in China Unicom.

"It's unlikely to break 6 pieces. Let's let the bullets fly for a while longer."

Zhang Yang smiled faintly.

Network operators are the direct beneficiaries of the transition from 2G to 3G networks.

Even if China Unicom made a mistake in its marketing decisions regarding the iPhone 3GS, it does not affect the development potential of its other businesses.

"Okay, let's continue with swing trading and see if we can reduce costs."

Liao Guopei didn't ask any questions. Instead, he, like Lin Guangchang, Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun, prepared to engage in swing trading.

A qualified speculative investor not only needs to control the market, but also needs to learn how to trade in waves. Only by doing T+0 operations well can the cost be lower than that of retail investors, making it difficult for retail investors to figure out the profit line of the speculator.

After this period of frantic day trading, the "Zhangjiang Gang's" holdings are as follows...

1. Newland, holding 1844.7 million shares at a cost price of 13.22 yuan, which closed at 13.58 yuan on November 27.

2. Yuanwanggu, holding 1286.4 million shares, with a cost price of 20.34 yuan, closed at 22.15 yuan on November 27.

3. Yinjiang Technology, holding 1024.39 million shares, with a cost price of 30.6 yuan, and closed at 44.86 yuan on November 27.

4. Hanwei Technology, holding 790.74 million shares, with a cost price of 37.3 yuan, and closed at 47.49 yuan on November 27.

5. Xinning Logistics, holding 664.2 million shares, with a cost price of 25.2 yuan, closed at 32.72 yuan on November 27.

6. Huaxing Venture, holding 402.96 million shares, with a cost price of 35.1 yuan, closed at 47.92 yuan on November 27.

It's not hard to see from the first six holdings that Newland and Far East Valley, which were listed earlier, did not have high gains and were trending downwards during this period. Only the four stocks on the ChiNext board were gradually pulled up by market funds.

Why is this happening?

The underlying logic is simply to speculate on new listings!

Of the 2,000 stocks listed on the A-share market, many are practically defunct and receive little attention from investors.

Since the ChiNext board has only recently been listed on the A-share market, the stocks listed under it naturally attract more attention from market funds.

In addition to these six stocks, the "Zhangjiang gang" also held 1.863 million shares of China Unicom, with an average holding price of 6.34 yuan. As of the closing on November 27, China Unicom's stock price was 6.02 yuan, resulting in an average loss of 0.32 yuan per share.

As for Penguin Holdings, the current total holdings are 1490.32 million shares, with an average holding price of HK$155. As of the closing on November 27, Penguin Holdings' share price was HK$139, resulting in an average loss of HK$16 per share.

Zhang Yang's two largest holdings, China Unicom and Penguin Holdings, were both at a loss, but he remained unperturbed, especially with Penguin Holdings, which is a flagship stock in Hong Kong.

……

As Zhang Yang was compiling market research reports, it was already 9:15 a.m.

Domestic capital did not disappoint retail investors this time, with the four major banks and securities firms taking turns to perform. Both major indices opened higher, with the Shanghai Composite Index opening at 3114.29 points, up 0.58%, and the Shenzhen Component Index opening at 13015.48, up 1.08%.

With the tone set by China's top economic conference and the easing of the Dubai World debt crisis, there is simply no reason for A-shares to fall.

An 8% drop over four trading days is already considered oversold.

To be precise, it wasn't a drop of 8% over four trading days, but rather over three trading days, because there was one trading day with a gain of 2.07%.

Driven by a combination of policy, economic, technical, and capital factors, both major indices opened higher and continued to rise throughout the day, showing almost no signs of turning back.

As 3 p.m. approached, both major indices stopped fluctuating. The Shanghai Composite Index surged 3.2% to close at 3195.3 points, while the Shenzhen Component Index also rose sharply, gaining 4.74% to close at 13486.77 points. A solid positive candle directly reversed the decline of November 27.

As the saying goes, "One positive day can change three perspectives," but this "one positive day" is not just any ordinary red candle. It must be a solid positive candle with a thick body, a large increase, and a strong profit-making effect. Most importantly, it must be able to reverse the previous trading day's negative candle. Otherwise, it is likely a false breakout.

By the close of trading, retail investors were still somewhat bewildered until they saw their securities accounts glowing red, which finally brought them to their senses. The flamboyant speculative trading channel was also extremely popular.

[Final Whisper]: I give up, I really give up. Fuchun Road, you actually made me money. I forgive you. Please keep up the good work and let me drive that damn Ferrari!
[I like shrimp noodles]: Fuchun Road has no problems with policy, economy, technology, and capital. I went all in when the market opened and have now made 6000 yuan. Brothers, "Fujia Army" is a good place to go!
[Brother Biao Biao]: We were ignorant before. From now on, I will support Fuchun Road as the guardian of retail investors. I only ask that the trading strategy posts are not interrupted. The dowry for my girlfriend in western Jiangxi depends on you, the Fuchun Road boss!
[That Winter]: Joker is truly amazing, he doesn't hold back on anything, and the website membership fee is less than 1000 yuan a year, which can be easily earned back with just one ticket. I feel that by following the big trends, it's easy to earn 20% a year.

[Daydreaming in class]: No wonder you're the creator of 625 million times returns, Master Zhang Yang! I call you the sharpest sword for retail investors!!!

(End of this chapter)