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

Chapter 70: Two T trades, maximizing profits.

"Mr. Zhang, I have helped you reduce your holdings of China Construction Bank by 2.32 shares at 4.46 yuan. I have sent you the account profit chart to your QQ account."

"Thanks for your hard work."

"This is my duty."

After exchanging a few polite words, Zhang Yang and Zhong Qifeng hung up the phone.

Since the leveraged trading account was not in his own hands, Zhang Yang had to request screenshots to find out the account funds and holdings.

According to the account screenshot, there were still 2.32 shares of China Construction Bank at this time, with a total profit of 7424 yuan for the single stock and a profit of 3712 yuan from the reduction of holdings. However, the actual amount received will be subject to various transaction taxes.

In 2009, to trade stocks, you first had to pay brokerage commission, which was charged on both buying and selling, and was approximately 0.1% of the total transaction amount.

Secondly, there is the stamp duty, which is levied unilaterally, only when the item is sold, and is calculated at 0.1% of the total sales amount.

In addition, there is a transfer fee, which in 2009 was 1 yuan per 1000 shares, with a minimum charge of 1 yuan for shares less than 1000.

If we only consider the selling cost, of the profit of 3712 yuan, 231.42 yuan must be handed over to the state and the securities company.

However, the bulk of the cost is still the brokerage commission, because only the selling cost is calculated, and the 0.1% for the purchase cost is not included.

In a single transaction, the commission is 0.1% for buying and another 0.1% for selling, which is equivalent to a 0.2% commission.

If you want to buy 10 yuan worth of stocks, you have to pay 100 yuan to the securities company first; this is the threshold for trading.

However, if you become a major client with tens of millions in assets, you can negotiate transaction commissions with the securities company.

For example, first- and second-tier speculative funds have large capital bases and need to trade frequently. If they were charged a brokerage commission of 0.1%, no one could afford it and they would all become "employees". Therefore, their brokerage commissions are generally 0.05% or lower.

If he reduces his position now, the profit would be 3480.58 yuan after deducting 231.42 yuan from 3712. However, Zhang Yang wants to complete a T-trade and needs to buy the stock back.

……

10 points.

As expected, market sentiment declined. China Construction Bank, which had surged to 4.47 yuan, fell back to 4.4 yuan, a drop of 1.57%. Zhang Yang decisively instructed Zhong Qifeng to buy back in.

2.32 shares were purchased at 4.4 yuan per share, for a total amount of 102080 yuan, with a transaction fee of 126.08 yuan.

After the buyback, a T-operation was successfully completed: the position was reduced at 4.46 and bought back at 4.4, with a profit of 0.06 yuan per share. In other words, without affecting the total number of shares held, Zhang Yang successfully cashed out 1392 yuan (before tax).

Because the A-share market operates on a T+1 basis, Zhang Yang's newly purchased 23,200 shares cannot be sold on the same day. However, he has another 23,200 shares that he bought yesterday, which he can sell today, thus allowing him to perform a T+1 transaction.

It's worth mentioning that, to avoid missing out, Zhang Yang chose to use half of his position for day trading, which is a trading strategy.

Using half a position for day trading means keeping half of the position as a base. Even if the stock suddenly surges, you still have half of the position to capture the gains.

For example, suppose Zhang Yang sold China Construction Bank shares at 4.46 yuan, and then the main force suddenly pushed the price up to the daily limit. Even if the 2.32 shares were sold too early, there were still 2.32 shares that benefited from the price increase.

But if you go all in, then you'll be missing out on the gains.

Half-position trading is an extension of the position-splitting strategy. For example, when first entering the stock market, only 20% of the funds are used to establish a position, and the subsequent market trend is observed before deciding on the next step. This is also a position-splitting strategy.

The biggest advantage of a portfolio diversification strategy is that it can reduce the risk of short-term volatility, making it an essential skill for long-term investors.

Compared to the large-scale trading of a full position, splitting positions focuses more on a steady, long-term approach.

……

Since he had no classes this week, after the market closed in the morning, Zhang Yang went to a Sichuan restaurant and had Mapo Tofu and twice-cooked pork before returning to the casual coffee shop to continue his A-share trading.

1 points.

China Construction Bank surged to 4.47 yuan again, and then the textile industry began to recover.

Zhang Yang decisively reduced his holdings by 2.32 shares at 4.46 yuan, and then waited to see how the market would perform.

At 2 p.m., as the market approached its close, risk-averse funds in the A-share market became more active. Huaxin Securities led the sell-off, with the share price falling from 25.44 yuan to 25.31 yuan, and the intraday candlestick chart continued to decline.

The leading securities stocks retreated, and other securities stocks fared no better, all experiencing sharp declines. This plunge in securities stocks dragged down other stocks, causing the overall market to follow suit. Even sectors not directly affected by the securities sector fell, reducing the Shanghai Composite Index's initial 3.12% gain to 2.66%, with the index currently at 2458 points.

When Zhang Yang saw that China Construction Bank's stock price had fallen back to 4.4 yuan, he had Zhong Qifeng buy back 2.32 shares of China Construction Bank.

Without affecting the total number of shares held, two T+0 trades were conducted to cash out 2784 yuan. This is the charm of stock market trading.

As the market closed near 3 p.m., mysterious funds made another push at the end of the day, and the Shanghai Composite Index finally settled at 2468.19 points on April 29, a gain of 2.78%.

Looking at the leveraged trading account in the Hongyue Investment and Trading Office in Hangzhou, Zhong Qifeng couldn't help but congratulate him: "Congratulations, Mr. Zhang! Your account has made a profit of 1.82 today. I'm truly impressed."

"It was just a fluke."

Zhang Yang responded modestly.

If he couldn't discern the other party's strength in a day, it might just be luck. Zhong Qifeng stopped flattering him and said with a smile, "Then, Mr. Zhang, I'll log off now. Tomorrow is a trading day, and my online time will still be from 9 a.m. to 3 p.m.

"Okay, could you please send me a screenshot of your margin trading account later?"

"No problem, Mr. Zhang."

"Then don't bother me."

Goodbye, Mr. Zhang.

"Goodbye."

Immediately after hanging up the phone, a trading manager asked Zhong Qifeng, "How was today, Brother Feng? Did the client make any money?"

"He made 18,000 yuan, with two T-trades. That kid seems to have some skills." Zhong Qifeng recalled Zhang Yang's relatively youthful face and couldn't help but sigh again.
"Stock trading really does require talent. In just three days, one day I was out of the market, the other day I bought 40 yuan worth of stocks, and I did two intraday trades in one day. I have to admire that."

"So awesome?"

The man was somewhat surprised.

If what Zhong Qifeng said is true, this is the maximum profit that has been realized.

"That's why I said they have talent." Zhong Qifeng packed his things, preparing to go to the meeting.

"Since you have talent, you can place a bet; maybe you'll make a fortune..."

"talk later."

Zhong Qifeng interrupted him.

One or two times might be luck, but he needs to observe further.

If a truly talented individual is identified, he can simply follow suit and buy their stock; this is a unique, hidden perk for trading managers.

……

And on the other side.

Commercial street outside Shanghai University of Finance and Economics campus.

A casual coffee shop.

After seeing the screenshot of the margin trading account, Zhang Yang opened his document and began to take notes.

Jianfeng Group rose 4.72% today, with a total holding of 20 yuan and a profit of 9440 yuan.

As for China Construction Bank, the initial purchase price was 4.3 yuan, and the closing price was 4.43 yuan, resulting in a profit of 6032 yuan. Adding the additional 2784 yuan from the two T-trades, the total profit was 8816 yuan, which translates to a return of 4.41%.

If he hadn't made any moves, Zhang Yang's return on China Construction Bank today would have been 2.55%. However, after two T+0 trades, his return reached 4.41%, nearly doubling the return of the "lying flat" group.

Then, Zhang Yang glanced at Rhine Biologics, which had almost unsurprisingly hit its daily limit, with the stock price reaching 16.16 yuan.

At noon, Rhine Biologics also issued an "Announcement on Abnormal Stock Price Fluctuations," which, as Zhang Yang predicted, used the template statement: "Currently, the company's operations are normal, and there are no undisclosed material matters that should be disclosed."

(End of this chapter)