Chapter 108 The Tidemaker in the Torrent of Money
Boss… are you really sure you want to do this?”
In the office of Qidian Investment Company, Smith Jama sat in front of the computer, with a look of surprise on his face, and looked back at Arthur who was standing behind him.
At this time, Arthur was wrapping his arms around, his face calmly, and looking at the gold trading market displayed on the computer monitor with an extremely serious expression, and nodded slightly.
"I'm very sure, I know what I'm doing, you just do it as I ask."
"But..." Smith and Jama opened his mouth with a confusion and worry, hesitated for a moment and persuaded: "The risk of using another $20 million to speculate on London gold is too great. This is not physical gold. The leverage ratio of 100 times is too great. The risk is too great. Once the gold price falls, it will be liquidated if it can't hold on for a few times!"
"..." Arthur was silent with a serious expression. In fact, he was also worried in his heart. However, he still had to bet. The general trend would not change. It was rare to have an opportunity. Whether he could reach the peak of his life from now on or raise grass in the countryside, it depends on this moment.
This time he did not buy physical gold, but wanted to speculate on London gold, a precious metal margin trading method.
This investment method is different from gold futures.
First of all, the trading model of gold futures is two-way trading, with a t+0 trading system, with a delivery period limit, and must be delivered or closed on the delivery day.
Although London Gold is also a two-way trading and t+0 trading system, it has no delivery period. It can open positions and close positions on the same day, with great freedom and can be bought and sold at any time.
The investment costs are different, gold futures are 15 times the leverage ratio, that is, the actual commodity transaction is 1 million, only a margin of 66,000 is required, which is considered high.
London Gold can be enlarged to 100 times the leverage ratio, only one percent of the margin is required, which can reduce the investment cost to 1% of the actual cost, that is, you can use a margin of $10,000 to get $1 million in goods.
In terms of profit, if you buy one lot at $1,000 per ounce, the other lot is equal to 100 contracts, and with 100 times the leverage of London gold, it is to buy one lot at $1,000 per ounce, and the cost is $1,000. If you sell $1,400 per ounce, it will make a profit of $40,000, which means you earn $40,000 with one thousand dollars.
Gold futures can obtain up to five times the return based on 15 times the leverage, while London gold can obtain a rate of return based on 100 times the leverage, with an absolute low investment and high returns, and of course, it is also accompanied by high risks.
Of course, it is also very exciting if the decline is...
Because gold futures have a 5% upper limit of rise and fall, but this kind of London gold does not have a limit down, so there is a greater profit margin and the chance of jumping off the building. Fortunately, stop loss and profit margin can be set, and the risk can be controlled.
It is precisely because of this low investment and high returns that touched Arthur's unstable ambition, and the fundamental factors that traveled through time and grasped the future that made him willing to take high risks and take a gamble.
"Then invest 10 million US dollars first, and leave another 10 million US dollars just in case. In this way, after the financial crisis, global currency depreciation, the United States' quantitative easing, and the European debt crisis frequently showed signs, which was beneficial to gold and a bull market pattern. I want to take a try!"
“100 times?”
“100 times!”
Arthur said firmly without hesitation.
"Okay, then I'll place an order..."
"Get down!"
Arthur stood behind Smith Jama with a serious expression and watched him exchange $10 million in margin for a London gold contract of $1 billion, a total of ten thousand lots.
In other words, from now on, as long as gold rises for every dollar, it can earn $1 million. Similarly, it will be even worse if it falls.
"Okay, boss, the deal has been reached."
Hearing Smith Jama's words, Arthur breathed a sigh of relief. No matter what, he had taken this dangerous move, and now he was waiting for the day to gain.
"Boss, you want the remaining 20 million dollars..."
The funds for the gold remortgage loan were 46.2429 million US dollars. After deducting 20 million, there was still 26.24 million left. I have to say that when Smith and Jama asked this, he was full of expectations.
He was really a bit ambiguous by the boss's big money these two days. The investment of the young boss is absolutely crazy. Since the boss's investment concept is so radical, he gives the new company 1 million pounds of operating funds, which is really unreasonable.
Therefore, he was very much looking forward to the boss leaving the funds in the company for them to operate. Even if they couldn't keep them all, they would leave at least 10 million.
It’s just a pity that Arthur never thought about it because he had already had a place to go for the money.
"Are I ready for the account you applied for in the U.S. stock market?"
"Well, I've applied for it a long time ago." When Smith Jama heard this, he was stunned, but he answered quickly, frowned slightly and continued: "Boss, we just don't know much about the specific stocks in the US stock market. It takes some time. We collect information, screen and identify individual stocks to find out the individual stocks that can be invested in..."
"No need!" Arthur shook his head without hesitation, his eyes narrowed slightly, his lips raised, and he said lightly: "I have already had a choice, buy all Apple stocks for 20 million US dollars!"
At this time, Smith and Jama were completely numb. He didn't know how to say such an extreme investment method for the young boss.
Where can I put all the eggs in one basket?
Isn't this crazy death?
"Boss, are you thinking about it again? No one will put eggs in a basket. This is too risky and no one can guarantee that every investment is right. In order to ensure the safety of the principal, diversification of investment is the best way to invest.
The best stock portfolio is to expand to 10. The risk can be reduced to 8% while maintaining the same returns. Years of investment experience tell me that we must always consider the worst case and consider trying to diversify the investment risks.
You must control the maximum position of a single stock. For example, if the investment portfolio contains 10 stocks, the maximum position of a single stock should not exceed 20%.
At the same time, the stop loss red line must be strictly set. If a single stock loses more than 15%, then the stock should be reduced or even cleared.
In the stock market, don’t believe in luck, but insist on risk control. Be optimistic about the principal and accumulate small victories to big victories…”
Facing the young boss who seemed to Smith who didn't know anything at all, was struggling with money and was running wildly on the road to death, Smith didn't want his life-saving benefactor just now, and he just had a chance to make a comeback. He just went to perish in front of him, and persuaded him earnestly, wanting to hold on to the young boss who was trying to die.
Arthur was still very satisfied with Smith's persuasion. The other party was really thinking about him. Looking at Smith's anxious and worried expression and his firm gaze trying to convince him, Arthur lamented that he had indeed saved the wrong person.
"Pai Pa"
Arthur reached out and patted Smith Jama's shoulder twice, and said in a gentle tone: "Thank you, Smith, I know you are thinking about me, but I am very sober and very rational now. I will not use my wealth and future to joke.
I'm not crazy, okay, you just need to do what I told you. No matter what the result is, this is my personal decision. Just like that, I will buy Apple stocks for me. I invest in a long-term and will hold them for a long time!”
Seeing that the young boss was so determined and said this level, Smith and Jama knew that he was helpless. His face was full of anxiety and worry, and finally turned into a sigh and said with a little dejected look: "Okay, boss, I hope you are right..."
Although Smith Jama agreed happily, his hands were very slow. He really wanted the boss to suddenly change his mind, but until he turned out the purchase operation page, he didn't hear anything from the boss behind him.
"At present, Apple's stock price is $25.68..."
"No need to wait, $20 million, I bought it all!"
Chapter completed!