Chapter 69: Leveraged Bull Market

After the National Day in 2014, the market finally ushered in a vigorous bull market after a wave of small corrections. It's just that this wave of market did not last long, but the rise speed was very fast, which Zuo Yuliang did not expect.

After the National Day, the A-share index began to strengthen significantly, which attracted Zuo Yuliang's attention. In his concept of stock speculation, whenever the stock market is going to be bullish, there must be a big demon of policy to make trouble in it. After all, China's stock market has a strong policy market nature.

"Call Pengfei to study the current stock market policy, so that we can keep up with the pace of policy. Zuo Yuliang sent a message and said.

"I've collected the main policies related to the stock market recently, and I'm sending them to everyone. Liu Pengfei sent a message and said.

"In 2014, the national property market regulation and control from tight to loose, based on the actual pressure, the local government removed the biggest inhibition of the property market transaction "thorn in the eye" - purchase restrictions.

On September 4, 2014, the State-owned Assets Supervision and Administration Commission (SASAC) announced that it might merge China North Railway and China South Locomotive, two of the largest rail transit equipment manufacturers in China.

On November 21, 2014, the People's Bank of China (PBOC) announced that it would lower the benchmark interest rates for RMB loans and deposits of financial institutions with effect from November 22, 2014.

The focus of the market interpretation is: to save the property market, save state-owned enterprises, and respond to the signs of slowing economic growth. ”

"Then Liu Pengfei, from your point of view, what are the main benefits that these policies will bring?" Zuo Yuliang asked in a message.

"I think it's mainly good for the following industries. One is real estate, and the other is a state-owned enterprise restructuring enterprise. Liu Pengfei sent a message and said.

"Is there any news about the capital dynamics of the stock market?" Zuo Yuliang asked.

"Mainly, the chairman of the China Securities Regulatory Commission has also vigorously called on domestic and international compliance funds to enter the market from various channels, actively participate in the value investment opportunities of A-shares, and share the growth dividends of the stock market brought by the national economy. Liu Pengfei sent a message and said.

"So it seems that the policy has changed from the original suppression of the stock market to the vigorous development of supporting the stock market? It seems that the spring of the stock market is coming. Zuo Yuliang sent a message and said.

"In fact, there is an omen of a wave of rise in small and medium-sized enterprises in the early stage!" Cao Yinqiu also sent a message.

"Then the next good days for the stock market are coming. According to my calculations, if the bull and bear are open, from July 2014 to the end of 2015, there should be a bull market!" Zuo Yuliang sent a message and said.

"Brother Zuo, do you mean that last time you said that A-shares have a reincarnation every six years, a 1.8-year bull market, and a 4.2-year bear market?" asked Liu Pengfei in a message.

"Yes, I estimate that the next trend of the stock index, nine times out of ten, it will develop like this. Let's ride a donkey and read the record book, and we'll see!" Zuo Yuliang sent a message.

"Then Brother Zuo, why don't you just continue to deduce and see how the A-share index will evolve in the next few years, and we all have a psychological expectation. Hu Weiyong sent a message and said.

"It's a heavenly machine! From 2014 to 2016, it is estimated that there will be a bull market, and in the summer of 2020, it is estimated that there will be a low point in the market stage, which is around 2400 to 2500 points. In other words, we will have a big opportunity in front of us in the next six years, and then there will be a lot of risks, and it will not be until the summer vacation of 2020, six years later, that we will be able to copy the bottom of the market again. Zuo Yuliang sent his calculation results to the group.

"It seems that the bull is still short and the bear is long?" Hu Weiyong said in a message.

"This can't be helped, this is related to the character of our people, everything is good at gambling, once the stock market is bullish, it is often bankrupt to enter the market. And once the stock market goes bearish, it will be a swarm of people who will run away. Therefore, if retail investors are not destroyed, there is no hope for long cattle and slow cattle. Hahaha. Zuo Yuliang sent a message and said.

"Listening to Brother Zuo's analysis, I still feel deeply? I seem to be the same character!" Li Ruyun said in a message.

"Ruyun, I haven't seen you for a long time, I don't know what kind of stock you're buying now?" Zuo Yuliang asked with a message.

"I'm a small and medium-sized entrepreneur, and I've tossed several stocks in exchange for it, and I'm still losing half of my money! Li Ruyun sent a message and said.

"Then why don't you be patient and hold shares? If there is a market, every stock must behave! It's just that sooner or later it will be different. Zuo Yuliang sent a message and said.

"Brother Zuo, I also understand this truth in my heart, but I just can't help it?

"It is still necessary to insist on holding shares, and if the market forms a bull market pattern, holding shares is the biggest winner. In fact, as the saying goes, the bull market holdings, bear market short positions are not false at all, and it is not easy to do this! Therefore, most people often experience it after the fact, but it is too late. Zuo Yuliang sent a message and said.

"Thank you Brother Zuo for reminding me, just pay attention to stock speculation in the future. Hehe. Li Ruyun sent a message and said.

"Most of the time stock trading is a boring wait, just like the fruit on a tree, you know that when it is placed on a plate, the aroma is attractive. But he didn't think about the months when it was growing and waiting silently when it was on the tree. Zuo Yuliang sent a very charming message and said.

"Brother Zuo has entered the country by speculating in stocks, which is very Zen family. Hehe. Du Wenfeng sent a message and said.

"This is my feeling from the bottom of my heart! After so many years of stock trading, most of the time has been spent in patient waiting. In fact, stock trading is the most boring thing in the world, and it is also the easiest thing, but few investors will think so. Most of them come for the excitement, buy today, sell tomorrow, like going to the market to catch the market, just thinking about buying a bargain, or picking up a leak to buy an antique or something, hoping to get rich overnight. Zuo Yuliang continued to send a message and said.

"Hahaha, Brother Zuo's metaphor is very wonderful, I have been taught very deeply, and I will pay attention to it in the future. Hu Weiyong sent a message and said.

In this way, in the process of patiently waiting for Zuo Yuliang and his companions, the stock market also ushered in its vigorous rising stage.

As soon as the time entered November 2014, the stock market started a vigorous rise like a divine help, and it rose for nearly two months in one go.

"Brother Zuo, it's terrible, the Shanghai Composite Index has risen from 2,000 points to more than 3,400 points, up more than 1,400 points in one go, a rare fast bull!" Two months later, Hu Weiyong sent a message in the group.

"Small and medium-sized enterprises and large-cap A-shares, all indices are in the red! It seems that this is a large-scale bull market start?" Cao Yinqiu also sent a message.

"The volume of trading volume has exploded, it has exceeded one trillion, Pengfei, what the hell is this?" Zuo Yuliang asked in a message.

"You don't know yet, right? Brokers are allowed to put leveraged funds into the market, just like Brother Zuo, you have this qualification. As long as it is 500,000 yuan of stock market assets, you can apply for leverage qualifications, called VIP senior customers! You can use up to three to five times the leverage to buy stocks. Liu Pengfei sent a message to explain to everyone.

"This is the first time I've heard of this, and is it also a new policy?" Zuo Yuliang asked.

"I'll give you an explanation. Liu Pengfei sent a message and said.

"Financing leverage is the proportion of borrowing money, for example, 3 times the financing leverage, that is, you borrow 3 times your principal to invest, you borrow 30 million for 10 million, a total of 40 million for investment, when you buy stocks, buy a price limit, then you earn 4 million a day, when the limit falls, you lose 4 million a day, if you don't use financing leverage to speculate stocks, your profit and loss a day is less than 1 million, and you can earn up to 1 million, and you can lose up to 1 million. ”

"Brother Zuo, do you understand, that is, the dealer can lend you money to speculate in stocks, and you can raise up to ten times the financing. If you want to earn, you will earn ten times, and if you want to lose, you will lose ten times. Liu Pengfei continued to send a message.

"Isn't this risk very high?" Zuo Yuliang asked in a message.

"This is natural, if the loss exceeds your principal, it is called liquidation, once the liquidation will be lost, and even the loss of the principal may not be enough!" Liu Pengfei said in a message.

"It's crazy to play like this? Zuo Yuliang sent a message and said.

"No wonder the current market trading volume is huge, the increase is amazing, it turns out that it is all leveraged funds to enter the market!" Zuo Yuliang said in a message.

"Yes, the current policy vigorously encourages funds to enter the market to go long, as long as it is encouraged by the policy, it is legal and compliant. Liu Pengfei sent a message and said.

"Then the days of this bull market will not last long! The future market will be a river of blood. Then my bull market time judgment will shrink by half, from the original one year and eight months, to ten months. Everyone should be careful! Around May 2015, everyone should be careful. Zuo Yuliang sent a message and said.

"Brother Zuo, it's not so serious, the voices on the Internet have exceeded the 6124 high. Liu Pengfei sent a message and said.

"It's like using hormones to stimulate development, where do you say that there are things that grow and develop by eating hormones every day!" Zuo Yuliang sent a message and said.

"Hehehe, Brother Zuo, you seem to be outdated, and the three major stock indexes are all popular all over the sky. Liu Pengfei sent a message and said.

"There are many voices everywhere! The 10,000-point theory has come out again. Du Wenfeng also sent a message.

"I still can't believe it! Stock trading can't be such a game! Sooner or later, something will go wrong. Zuo Yuliang sent a message and said.

Just when Zuo Yuliang was puzzled by the ferocity of leveraged funds entering the stock market, China's stock market ushered in a vigorous leveraged bull market. In addition to worrying, fortunately, Zuo Yuliang is a bull rider in this bull market.

The Wuliangye they built a position also began to step out of the bull's hooves of the leveraged market. It's true: the old cow knows that the bull market is short, so he doesn't have to worry about self-exertion.