Volume 1: Little People Return 2014 Chapter 036: A Trial in the Stock Market
Even after all this time of intensive study, Zhou Dongsheng can only say that he has only a partial understanding of the complexity of the stock market.
However, Zhou Dongsheng does not expect himself to become a financial genius. Relying on the only two annual monster stocks in his mind and the future national liquor, he believes that he is lucky enough to surpass 90% of investors.
I don’t know if this is a bit conservative.
Zhou Dongsheng learned from the listing report released by Lanshi Heavy Equipment that it plans to raise 130 million yuan of funds and publicly issue 100 million shares, with 60 million shares and 40 million shares to be issued online and offline respectively.
After understanding it, I realized how complicated listing is. The process is cumbersome, with public inquiries, pricing by issuers and intermediaries, and qualified institutions participating in the subscription.
It was only then that Zhou Dongsheng realized that he could buy stocks in advance before they were listed?
In addition to institutions, retail investors can also participate in the subscription of new shares. "Subscription of new shares" is also a popular operation in the stock market, and basically the lucky ones who win the lottery will not lose money.
Even if you choose to sell the stocks as soon as they are listed after winning the lottery, there are still many people willing to take over.
After all, for the capital market, good chips will never be left without a buyer.
However, after learning about the conditions for applying for new shares, Zhou Dongsheng also knew that he had missed this opportunity.
The chance to get on board early is gone, but as long as I can get on board, I can count on making money from this stock!
On October 9, Lanshi Heavy Equipment was officially listed, with an issue price of 1.68 yuan per share, setting the lowest record for new stock issuance in nearly 12 years. As a military-industrial enterprise, its nuclear power themes and new energy attributes are factors that the market is optimistic about.
A low issue price also means low chips. Even retail investors can get a hand (100 shares) to show their appreciation, which costs only over 100 yuan, provided they can grab them.
The chips were cheap and the market was optimistic, so naturally what followed was wave after wave of passing the parcel in the capital market, which eventually led to the reputation of the annual demon king.
But Zhou Dongsheng doesn’t care about any fancy things. As long as he knows that this stock can make money, it’s enough. With 20 million in his pocket, he shouldn’t be afraid and just do it!
After these days of homework, Zhou Dongsheng has a clear understanding of the most basic rules of the stock market.
The stock market opens at 9:30, but you can start placing orders to buy and sell at the call auction that begins at 9:15. The earlier you start, the better, as there is hope of a deal when the market opens.
After all, the principles of stock transactions in the stock market are price priority and time priority, and new stocks themselves are the hottest things in the stock market, and everyone wants to get in on the action.
Therefore, the market of Lanshi Heavy Equipment is particularly lively and beautiful at this time. The issue price of 1.68 yuan can not stop the enthusiasm of the capital market, and endless buy orders have been placed on it.
The world is bustling with people seeking profit, and the world is bustling with people seeking profit. This is the stock market, this is the capital market.
Zhou Dongsheng, who would not do anything without profit, came to the company early and waited in front of the computer, ready to participate in the call auction.
With the market generally optimistic, the trading of Bluestone Heavy Equipment is particularly lively at present. However, the call auction is like a game of Werewolf, and it is all about psychological activities.
Even if you place an order for 100 million lots, you can cancel it at any time. It's just for fun. Even retail investors can jump back and forth like Fang Tangjing.
When it comes to the continuous bidding phase after the opening, it is a game of real money. Whoever can grab the chips at the lowest cost and then sell them at a high price can make a profit.
The stock market is complicated because the rules are complicated. To put it simply, it is a game of pass the parcel. As long as someone takes over, you will never lose money.
Zhou Dongsheng didn't bother with any fancy tricks and directly placed a buy order for 10,000 lots in the 2 yuan range. Even if all the transactions were only for 2 million, the 10 million in the account would be more than enough.
The cautious Zhou Dongsheng was afraid that he would not be able to grab the chips, so he placed buy orders at 2.2 yuan and 2.3 yuan. He was not afraid of not being able to buy them.
At this price, getting on board is no different from picking up money no matter how much you grab.
Of course, when new shares open for trading, the institutions that have managed to get on board will certainly not easily give up their chips. Most of the lucky ones who have applied for new shares choose to cash out and leave the market in a timely manner.
As long as the price is attractive enough, they will choose to cash out and leave the market, feeling happy with their profits, but of course they will soon regret it...
While waiting, time soon came to 9:25, the ten-minute call auction ended, and the opening price of Lanshi Heavy Equipment directly reached 2.08 yuan!
Zhou Dongsheng was stunned for a moment, but fortunately he was cautious and chose to place a few more orders to pay, otherwise he would definitely not be able to get on the bus.
According to the principles of stock transactions, with time priority and price priority, as long as someone throws out chips, Zhou Dongsheng can grab them.
Zhou Dongsheng couldn't wait to refresh the page, and soon the buy orders were completed one after another, but they were just retail investors selling a few lots at a time.
The buy orders kept piling up, and the changes in numbers meant the game of real money. The trading board of Bluestone Heavy Industry presented a scene of "too many monks and too little meat", with large amounts of funds waiting to take over.
In the context of unprecedented market sentiment and strong capital relay , if retail investors fail to win in the bidding stage, they basically cannot even get the chips.
Sure enough, after the market opened at 30 minutes, a red straight line of almost 90 degrees went up all the way, and in less than a moment it stayed in the price range of 2.42 yuan.
More than hundreds of thousands of buy orders came out of nowhere, which means that nearly 30 million yuan of funds were pressed there, blocking the market price tightly. As long as there were chips thrown out, they would definitely be traded.
Zhou Dongsheng looked at his account.
Stocks held: Bluestone Heavy Equipment
Holdings/Available: 9500 shares
Cost/current price: 2.21/2.42 yuan
Profit and loss for the day: +1995 yuan (9.5%)
Market value: 22990 yuan
Zhou Dongsheng slumped in his chair, looking like he was thinking about life. Is stock trading so difficult? Although he made two thousand yuan in a blink of an eye, he seemed very happy.
But the 20 million yuan of funds that he had prepared were completely wasted.
Zhou Dongsheng felt like he was just a silly nouveau riche at this moment, rushing into the capital market with a sack of money, shouting " buy, buy, buy", but in the end no one was willing to sell to him.
After waiting for so long, he only picked up 95 lots of stocks, and spent only a fraction of the 20 million yuan. With more than 100,000 lots at 2.42 yuan, Zhou Dongsheng's buy order could only be cancelled, and there was no possibility of a transaction.
After all, once the price goes up, it won't be easy to come down unless the market is violently smashed. And if anyone wants to grab the chips of this monster stock, they can only compete with capital from all sides in the daily call auction.
This was completely different from what he had imagined. Zhou Dongsheng even thought that as long as he invested 20 million, he could easily get several hundred million back after a while...
Zhou Dongsheng felt strangely, wondering if he had underestimated the world. If only a rookie like him could treat the stock market as an ATM and manipulate it at will.
Wouldn't those financial tycoons be even more unscrupulous?
And by understanding the rules, Zhou Dongsheng also discovered a rule that requires holding 5% of the shares and holding a placard.
If you hold 5% of the shares, you will become an individual shareholder. The stocks will be locked in for trading for half a year. You must also notify the listed company, the stock exchange and the securities regulatory authority, make an announcement in the newspapers designated by the securities regulatory authority, and fulfill the obligations prescribed by relevant laws.
Sure enough, even if you are picking up money in the capital market, you have to follow the rules of picking up money.
As the saying goes, "The most profitable methods are in the criminal law." In financial markets such as the stock market, loopholes no longer exist.
Zhou Dongsheng calmed down immediately and faced the reality. He knew that he was just a lucky little man after all and it was unlikely that he could achieve great success overnight .
But you still have to buy stocks and change your strategy slowly. The epic market trend in 2015 has just begun. If you can't get rich overnight, you should at least eat meat and drink soup.
Since you can't become fat in one bite, just cut the meat slowly!
I originally prepared so much money to make a lot of money, but since it’s not that easy, I have to think about how to spend the money.
It's time to enjoy life and start planning on buying a car and building a house.
