Don’t ever say things like whether I’m timid or not. If you scold me, you must be right.
However, that’s the normal thought process for trading stocks with one’s own capital.
But now, this is a simulation, and the pressure from the competition format is indeed significant. Han Lie really can’t just sit back and watch.
The competition is arranged as follows—
The top ten players from the first week of the simulation will directly advance to the small-scale live trading competition.
The small-scale live trading competition starts on November 25th.
Each player has 300,000 in live trading funds. If their weekly return is negative, their ranking is not within the top five, or their total loss exceeds 6%, their trading privileges will be revoked, and they will be completely eliminated.
The vacated spots will be filled according to the rankings from the previous week of the simulation.
Players can choose to advance or continue playing the simulation.
Finally, after all nine weeks of the simulation competition are over, the top two players with the highest total returns will secure the final spots for the grand finals.
Therefore, Han Lie has two strategies—
Either strive to seize a spot in the small-scale live trading competition and then maintain a top-five position every week to survive until the end.
Or, don’t advance to the small-scale live trading competition and instead aim for the highest total returns, vying for the top two spots in the final round.
The former involves immense pressure but offers more practical experience.
The latter is more suitable for swing traders and trend followers.
Han Lie is determined to be a short-term trader, so naturally, he has to choose the first strategy.
Thus, no matter the state of the market today, Brother Lie can only bite the bullet and dive in.
Well, of course, there’s a knack to diving in too; you can’t just rush in without any preparation.
In today’s market landscape, there are basically only three approaches that are relatively stable—
First is a defensive mindset, focusing on sectors like liquor or pharmaceuticals. When the market dips, funds flow into these areas as investors seek safety in numbers; moreover, the end of the year is the peak season for liquor consumption.
Second is the strategy of buying oversold stocks. This includes quality companies that have been unfairly beaten down or market hotspots with a healthy stepped upward trend, all of which can rebound after a steep fall. ᴛhis chapter is ᴜpdated by novｅlfire.net
Third is a contrarian mindset: chasing the ’monster’ stocks.
The weaker the market, the more panicked retail investors become, and the more concentrated their attention gets.
Therefore, monster stocks often emerge in a bear market; the more bearish the conditions, the more monstrous the stocks.
The profit-making opportunities are all squeezed into those two or three sectors, among four or five leading stocks. Everyone’s watching them. They are easy to push up, move predictably, and trading volume is lively—so why not focus on them?
When overall market sentiment is poor, either don’t trade at all, or if you must trade, be bold enough to chase the leaders at high prices. Absolutely do not hold onto obscure, underperforming stocks hoping for a turnaround.
Doesn’t it seem particularly counter-intuitive? Well, that’s exactly right. In the stock market, you have to go against the herd; you absolutely can’t just follow the flow.
Today, Han Lie has his sights set on a ’little monster’ from last week.
The first target: stock code 2373, LinkComm. It was suspended in June for restructuring and resumed trading on November 5th, hitting its limit-up for four consecutive days.
For a stock like this, if it were real trading, Han Lie would have placed an overnight order last Thursday to snatch shares at the limit-up price.
Of course, for ordinary clients, placing an overnight order to buy at the limit-up price doesn’t really mean much.
Big clients have exclusive channels. On a limit-up day, there might be only a few million to tens of millions in trading volume. Large funds can get shares, while small retail investors shouldn’t even dream of it.
Han Lie is focusing on LinkComm today, mainly because he feels it should break its limit-up streak.
This stock has already driven a series of restructuring and high-dividend-themed plays. If it breaks the limit-up today, allowing for some chip reshuffling, there will definitely be a surge higher tomorrow. The certainty of making a profit is extremely high.
Han Lie’s target is just 3%; a good start will suffice.
In a weak market, certainty is far more important than high profits—a key point to remember in such conditions.
Some gullible veteran traders particularly like to bottom-fish at times like these. They especially aim to buy previous monster stocks when they hit their limit-down price, mostly hoping for a reversal from weak to strong to score a massive 20% ’floor-to-ceiling’ profit.
Han Lie really doesn’t understand it. Once the market accelerates its decline, and WHAM! Three consecutive limit-downs trap you, what’s the play after that? And where’s the core logic for a stock to suddenly turn strong? It’s obviously gambling. But if you’ve decided to gamble, why not simply place your bets on targets that are already strong? For instance, LinkComm, which has consistently hit limit-up without significant volume being traded?
Of course, it’s only because the likelihood of today’s market continuing to plummet is very low that Han Lie dares to push hard on limit-up stocks. Also, he can’t hold onto them for long; he’ll exit tomorrow, whether the price is high or low.
Ultra-short-term thinking is just like that.
「At 9:15 a.m.」
The call auction began.
Han Lie watched the market carefully, feeling it was indeed a bit weak.
But LinkComm wasn’t weak; the unmatched buy orders at its limit-up price reached twenty thousand lots before the market opened.
Han Lie’s idea was simple: If it breaks the limit and then shows signs of hitting limit-up again, I’ll jump in. If it doesn’t break the limit, I won’t bother. There are plenty of targets; it’s just that this stock offers the highest overall certainty.
「At 9:30 a.m.」
The market opened, and LinkComm continued at its limit-up price, its unmatched buy orders increasing to fifty thousand lots.
He watched it all the way to 9:44 a.m., when nearly twenty thousand lots of these buy orders were suddenly withdrawn.
Then, large sell orders started hitting the market.
If this were to happen ten years later... no, let’s say three years later, as long as the order withdrawals and the sell-offs came from accounts controlled by the same entity, they’d be looking at a fine and a warning.
The maximum fine isn’t high; the whales can afford it. But too many warnings lead to a trading ban, and that really hurts.
That "Shanghai Emperor," who was exposed by the one nicknamed ’Doggy Two’—his insider trading wasn’t criminally penalized because he didn’t profit, just fined 600,000. This wasn’t a mere slap on the wrist; the circumstances were genuinely considered minor.
If he had profited 50 million, you would see all illegal gains confiscated, he’d receive the maximum possible fine, plus three years in the ’state hotel.’
Later on, if a major client repeatedly placed and withdrew orders within the same day, the account manager would have to take angry calls from the client, get an earful from the compliance department, and then get chewed out by their own manager while writing reports...
All those reports that needed to be filed were like Qiao Biluo’s infamous black silk stockings: utterly disgusting to even look at. Getting a whiff? That would send you into paroxysms of revulsion, an almost out-of-body experience.