The Son of Finance of the Great Age

  Chapter 184 The real art of trading

   Following the news that the Chilean state-owned copper company might go on strike, the entire copper futures market seemed to be pouring a bucket of blood into the sea, which immediately attracted many predators to enter the market.

Establish a long position at a low position, then release news that is conducive to their manipulation of the direction, and then gradually increase the price. After anticipation, start shorting in reverse and spread the news at the same time. This is a commonly used tactic in the capital market.

  Between a rise and a fall, the main bulls made twice as much profit. Naturally, in this process, in addition to ordinary investors who took orders at high positions, there are also managers of speculative funds who think they are smart.

Now that the current copper contract is close to tens of thousands of dollars per lot, the funds that can manipulate the market are all investors with hundreds of millions of funds, and even billions of dollars of capital making waves in it. Therefore, even Zhongshi has to do so at this time Play up your spirits, for fear that you will be trapped in it if you are not careful.

  The plane landed at Heathrow Airport, and Andrew and others were waiting outside the airport. In addition to Andrew, there are a few traders who came here after hearing the news. They are all traders of Tianyu Fund, but after they entered Tianyu Fund, Zhong Shi had already gone to the United States, so they only heard about this. Many managers are very curious, and because Tianyu Fund has made hundreds of millions of dollars in the copper futures market during this period, they are even more curious about this slightly mysterious fund manager.

When they saw Andrew greet a slightly thin young man at the exit and embrace him warmly, these traders who usually have their eyes above the top were all dumbfounded. Among them, a young trader named Zhou Shijie screamed Suddenly, he said in disbelief, "Is this our manager?"

   "Probably not, maybe Andrew's friend?" A weak voice sounded, it was another trader named Zhao Shangming.

   In London, Tianyu Fund sent a total of four traders, and the other two were Lu Xisheng and An Pete, these are their Chinese names. However, they usually refer to each other by their English names.

   "Zhong Sheng, let me introduce you. This is Jack, this is Andy, this is Pete, and this is Derek." Andrew brought Zhong Shi to the traders and introduced them one by one.

  Zhong Shi nodded slightly to everyone, and after Andrew's introduction, he said: "Thank you for your hard work during this period, we will continue to make big moves in the future, and I hope you will continue to support."

  As soon as his voice sounded, these traders confirmed that the person in front of them must be Zhong Shi, because these people had heard Zhong Shi's words on the phone one after another.

   "Hello, Zhong Sheng!" The few people who understood immediately became a little submissive. After half a minute of silence, they finally came to their senses and greeted Zhong Shi one after another.

   Zhong Shi was no stranger to this situation. He nodded and smiled again, and followed Andrew out of the airport. In the parking lot of the airport, he saw four brand new Land Rovers parked in front of him in a row. He couldn't help being a little dumbfounded. He turned to Andrew and asked, "Is this posture a bit too much?"

  Andrew laughed and said: "These are the private cars of the traders. They heard that you were here, so they wanted to come and have a look. You are also the boss after all..."

   Zhong Shi stopped talking and got into the front car. He knew that although the price of Land Rover is not cheap, it is nothing compared to the salary and dividends of Tianyu Fund. Just like Andrew, he can afford ten or one hundred Land Rover.

   Bang bang bang, after several consecutive doors closing, this line of extremely conspicuous Land Rover motorcade drove towards the urban area in a hurry.

  …

   "Zhong Sheng, you just came to the UK, or should you recuperate the jet lag first, and then we enter the field to operate after the rest?" In the spacious carriage, Andrew tentatively asked.

   "No need, I'll just rest for one night." Zhong Shi shook his head, indicating that he didn't need it. Firstly, he is still very young, and secondly, the current market situation is urgent. Missing every trading day may result in a loss of millions of dollars, which makes him very unwilling.

According to the memory of later generations, he knew that now is the time for Binzhong Tainan to increase the price of copper crazily, and then as the world economic growth slows down, the demand for copper will also decline. Relying on his own strength to support the copper price, even the copper price in the US capital market was delusional to manipulate. In the end, under the attack of many hedge funds, he still went long against the market, and his energy was astonishing.

   "Enter tomorrow!" Zhong Shi said to Andrew a little coldly, then closed his eyes and said nothing more. Seeing this scene, Andrew beside him knew that it would be superfluous to say anything, so he kept silent, but he was lamenting in his heart, and his hope of taking Zhongshi to the nightclub with him was shattered again.

  …

  October 24th, Monday, copper futures opened at $2544, the same level as the previous trading day. Short sellers began to attack downwards shortly after the market opened, while Zhong Shi built positions at low positions. His strategy was to set a price higher than the market price, and the result was naturally to close short orders in the market one step ahead of other bulls. However, since the bears only made a temporary downward attack, they began to close their positions when they felt the support of the bulls. They seemed to be aware of the layout of the bulls, and when they finally found a lower position, they couldn't wait to close their previously established short positions. , This coincided with the intention of some bulls. The two sides started a large-scale liquidation at a price of around 2,545 US dollars. In the end, more short positions were closed, which made the copper futures price rise slightly and closed at 2,550 US dollars.

On October 25th, the long and short sides closed part of their positions in October and early November the day before, and the main force of both parties moved to the contracts in November and December. This means that the short-term peace in the copper futures market has returned to be broken again.

   "Open 100 lots!" Zhong Shi stood in the middle of the trading hall, facing the traders, and shouted loudly.

In the previous trading day, after Zhong Shi entered the market, he only made a short long position of 500 lots, because the market was facing a large-scale balance, and the liquidity of the contract in the new month was very poor, so he could only do such a small lot .

However, in the options market, he bought more than 1,000 long contracts again, bringing the total number of option contracts to about 2,500. Copper prices have risen in recent trading days, which has caused the prices of these option contracts to rise accordingly, and the party holding bullish options has taken the opportunity to sell, which has also increased the liquidity of the options market.

In this way, together with the current copper futures contract, Zhong Shi holds a total of 5,000 contracts. If this is absorbed in the copper futures market, it will definitely cause violent fluctuations in copper futures prices, and may even attract the attention of the main bulls. In this way, Zhong Shi's strategy will be seen through, and it will not be easy to absorb chips on such a large scale.

  100 lots of long orders are not eye-catching in the market, and they are all sold in two or three minutes, with an average price of $2,565. However, it didn't take long for the price of copper to rise sharply, rushing to around $2,570 in one fell swoop.

"Is there a main force entering the market?" Seeing this scene, almost all investors' first reaction was like this, because according to the current transaction situation, there are usually more than a dozen or dozens of lots between one or two prices. The daily transaction volume increases under such circumstances. Suddenly, the price of copper futures rose by nearly five prices, and the following sell orders and long-exchange orders must have been wiped out.

  Zhong Shi looked at the market with some doubts. He was not sure whether it was a short-term pull-up, or the main force of the bulls was exerting force again, trying to influence the operation of the follow-up market. However, he immediately realized that this was a good time for him to enter the market. No matter what, the rise in copper futures prices was beneficial to his operations.

   "Open 1000 more hands!" Zhong Shi said firmly. Traders have gotten used to Zhong Shi's orders. If Zhong Shi doesn't increase the price after speaking, it means that he will operate at the immediate price. For the large amount of 1000 lots, the traders were a little surprised at first, but they still faithfully executed the trading orders.

The long order just now pushed up the price of copper futures to about 2570 US dollars, and it stagnated a bit. The short sellers took the opportunity to open a large short position at this position, but Zhongshi happened to have a counterparty, 1000 lots Buy and open orders enter the market, quickly match them, and take up the short position at this position in one fell swoop. The copper futures price rises again after stagnating for a while.

   "2580!" After the current copper price rose to 2580 US dollars, Andrew walked up to Zhongshi and said worriedly. Zhong Shi immediately understood what he meant. Just now, the buy and open orders of 1,000 lots caused the follow-up orders to follow, and the empty orders in the market were wiped out as a result. If you don't continue to pull up, you will face the danger of falling.

   "Close 500 lots of low-priced long positions, and then open another 400 lots of long positions, set the price at 2582, break through!" Zhong Shi was expressionless, noncommittal to Andrew's words, and issued a trading order again.

The four traders had a clear division of labor. Among them, Zhou Shijie and Zhao Shangming began to gradually close their previous long positions according to the market price, and after they had just closed their positions, the other two, Lu Xisheng and An Pete, immediately opened their long positions again. , keeping prices at current levels.

  This kind of operation will give the following illusion, that is, the pull-up of the bulls has not stopped, but in fact, the positions of the investors who pull up are gradually reducing. When they almost flee, it is the end of the rise in copper prices.

  The reason why they don't start at the same time is because it is possible that his closing order will be taken over by his own new opening order, which will form a situation where the left hand is replaced by the right hand, which becomes a joke.

  When Zhongshi gradually reduced his holdings by 1,000 lots, what remained was a long position with an average price of 2,582 US dollars and a total of 300 lots, while the market price hovered around 2,590 US dollars. At this price, the short sellers did not hesitate to open a large number of short positions to beat the bulls here, and the copper futures price began to reverse downward.

However, the short offensive did not last long, because at $2,580, the main bulls entered the market to support the price of copper, which made the price of copper stay here. Seeing that the attack was hopeless, the shorts began to close their positions, and the price of copper rose accordingly, and finally closed at $2,586. .

   The author will continue to work hard to code words, I hope everyone will support, thank you!

  (end of this chapter)