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

Chapter 66 Soup or Meat?

At the close of trading at 3 p.m., no miracle occurred in the A-share market. The Shanghai Composite Index fell 1.77%, but did not fall below 2400 points, closing at 2405.35 points, while the Shenzhen Component Index fell 2.5%, reaching 9082.22 points.

The sluggishness of the banking sector and the weakness of the securities sector have left the entire A-share market lifeless.

When the short-term trend was uncertain, Zhang Yang chose to remain in cash and wait.

Many retail investors have learned to go all in and to diversify their positions, but they are slow to learn how to stay out of the market, which is the main reason for their losses.

No stock market can rise every day; fluctuations are what make it a stock market.

For example, on April 27th, Zhang Yang did not make a move, thus avoiding a 1.77% drop in the market. If he chooses to enter the market tomorrow, the price will be lower than that of other retail investors.

Making money in the stock market isn't about luck, it's about endurance.

Peter Lynch, hailed as the world's best fund manager, mentioned in his book "Beating the Street":
Regardless of the investment method you use, ultimate success depends on one ability: the ability to ignore environmental pressures and persevere until investment success. What determines an investor's fate is not intellect, but endurance.

British fund manager Terry Smith also stated in his book "Investing in Growth" that investing is like a marathon, requiring long-term commitment rather than short-term strategies.

Learning and mastering basic investment strategies such as holding cash, splitting positions, and going all in is the first step to starting to make a profit.

Since no leveraged funds were used, Zhang Yang did not need to pay daily interest to "Hongyue Investment".

……

Shanghai University of Finance and Economics Library.

Study area in the financial analysis room.

Wearing a pure white tight-fitting turtleneck short-sleeved top and a gray high-waisted A-line skirt, He Jing, with her stunning figure, looked at Zhang Yang approaching with a laptop bag and asked, "Where did you go this morning? Why weren't you here trading?"

obviously.

She came to the library this morning.

Zhang Yang put down his laptop bag, took out his laptop, and said, "We need to find a place where we can make a call."

"Looking for a margin trading company?"

He Jing's expression flashed with worry.

Professor Wang Xingbang once advised against leveraged investing, because of the ten stock market investors who jumped off buildings, all ten of them had used leverage.

If you hadn't used leverage, the drop from 6000 points to 1800 points in 2007 would have resulted in a loss of at most 70% or 80%.

However, if you use leverage, even just 2x leverage, you can still be wiped out in such extreme market conditions, leaving you with nothing.

"Ah."

Zhang Yang didn't hide anything, nor did he need to hide anything from He Jing. He then changed the subject, asking, "Has the third market research report been completed yet?"

"It's done, I'll send it to you now." He Jing didn't dwell on why Zhang Yang wanted to use leverage; she respected his choice.

"it is good."

Zhang Yang responded and then said, "There are only four days left this month. Put in some extra effort and try to submit the fourth article to me before the 30th."

Four market research reports a month—that's the agreement between Zhang Yang and Tao Yuang.

Although they signed the "Co-creation Agreement" on April 9th, an agreement is an agreement. Even if it's not yet 30 days, if it's agreed to be four articles a month, then it has to be four articles.

"Are you in such a hurry?"

"It was indeed a bit rushed."

"I will try my best."

"Well, if you don't have any ideas, you can start with individual stocks or sectors, which is simpler."

"understandable."

After a brief exchange, Zhang Yang opened the third market research report prepared by He Jing, which focused on the economic recovery in Asia.

According to the research report, Japan's real GDP fell by 3.3% quarter-on-quarter in the first quarter of 2009, an annualized decline of 12.4%. The 75 trillion yen investment plan did not seem to have directly stimulated economic recovery as expected.

However, at the interest rate briefing in March, Japan indicated that it would further lower interest rates and did not rule out the possibility of negative interest rates.

What is a negative interest rate?
Taking Zhangyang Leverage Financing as an example, if you borrow 800,000 yuan and use it, the annual interest rate is 10%, and you will have to pay more than 200 yuan in interest every day.

However, if the annualized interest rate is -10%, Zhang Yang not only doesn't have to pay loan interest, but the financing company also has to give him more than 200 yuan a day—that's negative interest rates. Japan's further tightening of monetary policy has finally brought a turning point to the domestic economy.

Meanwhile, in South Korea, it announced an interest rate cut on October 9, 2008. By April 27, it had cut interest rates six times in a row, bringing the benchmark interest rate to 2% and the real interest rate to negative, in order to increase market liquidity.

The economic recovery in Japan and South Korea is helpful to neighboring China, especially given the negative interest rates, which often attract foreign investment.

……

After thoroughly understanding He Jing's research report, Zhang Yang began making revisions.

He added content to the last page, mentioning the impact of the H1N1 influenza outbreak in the United States and Mexico on the world, and then extended the discussion to the concept of "shikimic acid". Finally, he included his evaluation of Rhine Biologics, the "fake leader" that hit the daily limit today, and a list of five domestic companies with shikimic acid production capacity, including Jianfeng Group.

Working until dark, Zhang Yang sent the market research report to Tao Yuang via QQ file and left a message: "Shikimic acid is the new main theme of the market, and monster stocks will emerge from it."

He then forwarded it to his VIP research report group, and then posted his trading insights and the rest of the research report on his Baidu Tieba account, joker.

Zhang Yang was gambling at this point. His channels had very limited reach, but if he could get the message out through Tao Yuang, given the influence of Huaxin Securities, it might have a miraculous effect.

After all, Huaxin Securities wants to promote him now, so it's impossible for them not to give him traffic.

Furthermore, Zhang Yang learned from the list of brokerage firms that bought Rhine Biologics shares on the stock exchange's trading data that the controlling speculative capital was the "Lemon Daredevils".

As the leader of the daredevil team, Zhang Yang had specifically studied Xu Xiang's trading style. He basically believed that once he made a profit, he would make it last for ten years, and he wouldn't rush to sell after only two or three consecutive limit-up days.

Furthermore, Zhang Yang learned through his past life memories that Rhine Biologics was a major speculative stock in 2009, which means that the shikimic acid concept will be hyped up to the sky in the future.

If you can't get into the leading stocks, you can always follow the "second-tier" or "third-tier" stocks and get some profits.

However, Zhang Yang never expected that his VIP research report group was not only joined by "Jumping Brother" Chen Sanrong, but also by second-tier speculative investor "Zen City Shadowless Kick".

……

At this moment, Liao Guopei (Shadowless Kick of Chancheng), who was far away in eastern Guangdong, was carefully reading the market research report that Zhang Yang had recently issued.

After his previous attempt to control Changan Automobile failed, he learned from his mistakes, reflected on his own shortcomings, and sought to learn from the strengths of others.

Like Chen Sanrong, he also stumbled upon Zhang Yang's post, but instead of replying, he simply followed him.

Since then, he would occasionally check Zhang Yang's posts to compare his own practices.

Upon discovering that Zhang Yang had created a chat group, Liao Guopei immediately joined to check it out.

Unlike Chen Sanrong, who decisively left the group, Liao Guopei transferred money after learning that Zhang Yang was going to sell market research reports, just to give it a try.

You wouldn't believe it until you see it; once you do, you realize the other party really has some skills.

"Shikimic acid concept, Rhine Biologics," Liao Guopei muttered to himself as he looked at the research report.

He was also a speculative investor, so of course he knew that this was the work of the "Lemon Wave Daredevils," and that the "chief strategist" Xu Xiang was personally leading the team.

"Maybe I can get some benefits too." Liao Guopei muttered to himself as he closed the research report and opened a chat group for experienced stock market investors.

The content being discussed in the group chat immediately caught his attention.

[Little Bear Loves Connecting Boards]: Hahaha, this Joker is such a clown, actually trying to drag the Jumping Bro into the Lemon Bo Suicide Squad.

[Stock Trader Supports the Family]: Today's dose of amusement is here! This is the real joker, haha!
[Little War God]: I've also read his trading strategy posts. I thought he was a pro's sockpuppet account, but it turns out he's a lunatic.

Because Zhang Yang's private message was too far-fetched, Chen Sanrong took it as a joke and posted a screenshot to a 500-person chat group. The screenshot then spread like wildfire throughout various stock trading groups.

However, when Liao Guopei saw Zhang Yang's idea of ​​"intercepting the dragon," he did not treat it as a joke like the others. Instead, his mind went blank and he got goosebumps all over his body.

"Snatching food from a tiger's mouth..."

"Openly wielding firearms..."

After a brief moment of regaining his senses, he began to consider the feasibility of the matter.

Having gone without "food" for nearly half a year, Liao Guopei is hungrier than any speculative investor; he desperately needs a surge that will send prices soaring to the sky.

But his opponent was the Grand Master Xu Xiang, which made him feel intimidated.

Thank you so much to the "Lane Deviation" expert for the 10000-point reward! Thank you also to all the readers who have given monthly tickets, recommendation tickets, and followed the story every day. I wish you all the best in your daily limit-up stocks and a bull market!

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(End of this chapter)