Chapter 211 Unexpected setbacks
On the first trading day after the holiday, the markets of both markets retreated slightly. Affected by the news and short capital volume, the market was relatively weak after the holiday and the market capital flow weakened.
It is rare that the stock market in the Year of the Monkey began with a slight decline.
As Chen Qiaoshan expected, Tunhe shares opened high and closed low, and the trend showed a slow down trend throughout the day. Although the cross star was mixed in the middle, the downward trend was obvious.
Strangely, Tunhe Co., Ltd. did not plummet in its stock price.
Chen Qiaoshan was a little confused. There was no sign of the main force increasing in the market, and the intraday trading volume gradually decreased, which was basically consistent with the trend of the market.
At first he couldn't understand it, but it was clear that if the dealer's mind was so easy to see through, anyone would probably be able to be a dealer.
There is a saying in the stock market that you are not afraid of sharp declines, but you are afraid of negative declines.
Chen Qiaoshan knew that if this trend continued today, the market would probably be cleaned.
Judging from the current market, using the price moving average analysis, Tunhe shares are undoubtedly dangerous, and the bearish signal in the future is extremely obvious.
However, judging from Tunhe's performance, the stock price is obviously undervalued and has completely lost the room for decline. However, from the market perspective, the decline in the stock price has become inevitable.
This creates a paradox, where value and price are completely diverged.
Chen Qiaoshan knew that under normal circumstances, prices would fluctuate around the normal value, while prices depend on the value and supply and demand relationship.
Only when there is incomplete competition in the market will the price be broken with the value, and the main force is the most fundamental reason. The market is controlled by capital and has formed substantial stock price manipulation.
In a vague way, Chen Qiaoshan felt as if he had seen the main force's intentions clearly, and his heart suddenly became cold.
"Dog fuck!"
After being in this world for so long, Chen Qiaoshan swears in public for the first time.
His voice was loud enough, but there was no reaction around him. Internet cafes have always been noisy, so it was normal to curse the streets. Equipment was exposed, number stolen, money and sex... It was naturally unhappy if you didn't scold me twice.
Chen Qiaoshan finally understood that he fell into the trap of the dealer. It was a bit far-fetched to say that the trap was used. People used dignified means, but they cheated him for half-understanding.
What value investment and what physical value are, for big capital, are all in vain.
The essence of the stock market is capital speculation. No matter which form of participation is, the ultimate goal is to increase capital value.
In the eyes of smart people, the stronger the growth factor of individual stocks is, the more popular it is. From a market perspective, this is all false. In the face of huge amounts of capital, everything is not that important.
Chen Qiaoshan knew that the main force’s purpose today was to create a sign that the stock price of Tunhe shares was deliberately suppressed. Faced with a predictable decline, hot money may have the possibility of a liquidation. For smart people, the best choice is to clear the position, and this is exactly what the dealer wants to see.
The purpose of the dealer washing the market is very clear. If there is a large-scale shipment in the market, there is no need to continue to suppress it.
Chen Qiaoshan sold nearly 8,000 hands today. If he placed an order at the same time, it is very likely that Tunhe shares will hit the limit. Even if the transaction is diversified, it will be enough to cause fluctuations in the stock price.
But the actual situation is not the case. The market has always been very stable. Although it is showing a high opening and low closing momentum, from the perspective of trading volume, it is very balanced and has a tacit understanding of the cooperation with the company. This is obviously a disguised way to attract funds.
Chen Qiaoshan was very depressed. He couldn't help but feel a sense of frustration, which was an emotion he had never seen before.
Even if he understands the status quo, he has no choice but to do anything.
If you sell, the main force will absorb funds. If you don’t sell, the opposite company will wash the market.
Chen Qiaoshan knew in his heart that there was no problem with his response today. He could not bear the risk of liquidation at all, so he could only watch the dealer take his own chips.
And together, this is the power of capital.
The clearer you see, the clearer Chen Qiaoshan will be. In the face of capital, the so-called value is nothing, and maybe even nothing is considered a fart.
He couldn't help but remember a sentence that the Jewish boss Carl Icahn once said, "I made money by learning from human stupidity."
Chen Qiaoshan had never understood what he wanted to express in his words, but today he finally had some concept. To put it bluntly, he would make a profit. There would be more time. Investing is not about who is smarter, but about who makes fewer mistakes.
Chen Qiaoshan knew that he had made no mistake today. He suffered a loss because of insufficient capital. No matter how smart you are, you have no room for maneuver in front of real capital.
Of course, he can also choose to continue buying, but in this way, he will have to bear greater risk of liquidation, which is the most unwise choice.
The most taboo thing when investing is to act voluntarily.
Ultimately, the root of the problem is one word, money.
If the principal is sufficient and you can bear risks, you can make money. If you cannot bear risks, you can only cut your losses and leave the market. This is also the sorrow of many retail investors.
The simplest example is the sideways trend, which is the situation that retail investors are most reluctant to face. Although the stock price is stable and they do not lose or make money, ordinary investors basically choose to leave the market in this case because they are pursuing short-term profits.
The sideways are the prelude to the change of the market. It either rises or falls. If you cannot afford the risks, you will naturally have to leave. The dealer often uses this to absorb funds on the sideways, and seize the capital disadvantages of small scattered stocks to achieve the purpose of collecting chips.
After thinking through it, Chen Qiaoshan no longer struggled. He knew that today's failure was a crime of wrong and war. He suffered a loss because of insufficient capital and underestimated the role of capital.
If you look closely, he can't find out any of the problems of the dealer. Their methods are open and upright, reasonable and legal. Even if you know that your opponent is a dealer, you can't do anything to others. This is the first-class person in the capital market.
It may be a bit of an exaggeration to say that the other party is a dealer, and it should be more appropriate to use the main players in the market.
Chen Qiaoshan knew in his heart that after doing this today, he had basically gone through more than half of his planning in the past few months.
Fortunately, I still hold more than 5,000 hands in my hand, so I can’t eat the meat anymore, so I can still drink some soup.
After leaving the Internet cafe, Chen Qiaoshan pushed the 28th car and walked towards the entrance of the town. It was still early, and the market closed at 3 o'clock in the Shanghai and Shenzhen stock markets, and it was less than four o'clock now.
On the first day of the lunar month, the town suddenly became lively.
When I came back from the city yesterday, there were only a few stalls at the entrance of the town. Today, I saw that the stalls were basically full. The doors of each merchant in the town were filled with bright red firecrackers. Depending on the situation, they were almost open to do business.
Chen Qiaoshan felt a little overjoyed, and he was hit hard today.
It is not that there is no gain. After this battle, he completely realized the cruelty of the market. Capital is the only one. Any opportunity can only be regarded as taking advantage of capital.
The coexistence of long and short positions, and risk is related to returns, and this is the real market.
Chen Qiaoshan sighed, he was still too weak.
The sun has gradually moved northward from the Tropic of Cancer, and spring is not far away. Feeling the not-so-strong sunshine, Chen Qiaoshan felt much more relieved. After all, winter cannot last long. After today's setbacks, he has become more determined to move forward in the capital market.
Chapter completed!