Chapter 523: Thirty times the gain

"This plan is good!"

Liu Lang clapped his hands when he heard this.

Liu Lang watched a series filmed on Hong Kong Island in the nineties in his previous life, the villain in it is a person with special functions, who can predict some things that will happen in the future, so in the stock market, his three bad sons have also become monopoly, the hero and he are the opposite, always want to beat each other through the stock market, the final decisive battle between the two sides is to bet on the stock index, as a result, the hero in the end with the help of several Hong Kong Island tycoons raised the stock index by hundreds of points, so that the other party went bankrupt overnight, this futures stock index is the fastest way to make money。

"What is the maximum amount of leverage that can be achieved?"

Liu Lang asked.

"According to the rules of the exchange, the maximum leverage is thirty times!"

"Thirty times!"

Liu Lang calculated slightly in his heart, he now has 1.3 million US dollars, and in three months he should be able to reach 1.5 million US dollars, and 30 times the leverage is 45 million, although it doesn't feel too much, but at least it can solve the matter in front of him.

"Thirty times leverage is the highest leverage multiple, and there has not been such a large leveraged futures stock index in the past ten years, and even if it does, no one will respond, after all, the risk is too great, and Wall Street venture capital companies dare not get involved too deeply!"

Luis continued.

"Hehe, 30 times the leverage is indeed very high, the risk is too great, but if I say that the stock index will fall by 500 points tomorrow, let alone 30 times the leverage, even if it is 50 times the leverage, someone will come to play with me!"

Liu Lang replied with a smile.

"This ......... That's true!"

Leverage is high risk, if you say that the index will rise by ten points tomorrow, and then announce thirty times leverage, it is estimated that reasonable people will never gamble with you, after all, you can accompany thirty times if you lose, and the index rises by ten points is also a high probability event, the Dow Jones index rises or falls every day at about forty or fifty points, and even more than 100 points up and down when it fluctuates, those analysts have more than 10 years of stock market data in their hands, and these data are enough to analyze some laws.

The U.S. stock market is very formal, and there will be no unexplained plunge or spike, unless there are some unpredictable reasons, such as a sudden war in some place, or a natural disaster, etc., these unpredictable factors are not predictable by everyone.

Louis felt that if Liu Lang proposed to the exchange an announcement that the index would plummet by 500 points a day, everyone would immediately think that this person was a fool, a big fool who was so stupid that his IQ was zero, 500 points exceeded 20 percent of the market value, and it fell by 20 percent in one day, even the most imaginative home in the world would not think so.

In the nearly 100-year period since the establishment of the Dow Jones index, there have only been two times when the market value has plummeted by more than 10 percent in a single day, and that was during the economic crisis that swept the entire Western country 50 years ago, when the Dow Jones index was only more than 300 points, and the largest one plummeted by 50 points in one day, but it was less than 20 percent of the market value.

In the following 50 years, the Dow Jones index continued to grow, until now close to 2,000 points, which can be said to be a 50-year bull market, although many economists and stock traders feel that the stock market has been somewhat volatile recently, and there may be a fluctuation beyond the previous level, to say that it can plummet by 100 points a day, and perhaps more than 50% of traders believe that if it can only plummet by 200 points a day, then only 20 percent of the people who choose to believe it will remain, and if it is said that it has plummeted by 500 points, no one in the entire United States will believe it.

What would you think about a person who doesn't believe what happened and doesn't think about the risks, as if someone made a bet with you that the moon would fall tomorrow and then place a bet of 100 yuan?

It can be said that in the eyes of stock traders, the probability of the Dow Jones index plummeting by 500 points a day is greater than the probability of the moon falling, but it is not much bigger.

"Thirty times is still too little, is there a hundred times leverage?"

Liu Lang thought for a while and asked.

"That's not true......... Even if there is a futures stock index with 30 times leverage in the past ten years, there are only announcements, no one bets with him, as for higher leverage, it itself carries a huge risk, a large number of financial bubbles will be formed, and the stock market will not allow a large number of bubbles to exist!"

Louis said.

"There won't be a bubble?"

Liu Lang smiled secretly in his heart, now because most of the Dow Jones index are industrial companies, belong to the industry, this kind of company wants to bubble is also difficult! The Dow Jones index has only reached 2,000 points in the past 100 years, and the NASDAQ stock market has been established ten years ago, and the NASDAQ represents an emerging industry, but at this time there are not many emerging industries, and the NASDAQ that has grown for ten years is only about 300 points, but soon the NASDAQ will usher in a big explosion. What high-tech companies like Intel began to exert force, and the craziest era of the Nasdaq stock index was in the late nineties, when Internet companies had already emerged, and the biggest advantage of this kind of enterprise was that it had a large number of "bubbles".

Now the NASDAQ index is 300 points, ten years later, that is, in 96 years to reach 1,200 points, since then the NASDAQ index has begun to soar with the influx of Internet companies, to two thousand years, the NASDAQ index has reached 5,000 points, in just four years has increased fourfold, but with the bursting of the Internet bubble, the NASDAQ index was also broken by the waist, the lowest was only 2,500 points, until 15 years later it returned to the height of 5,000 points.

It can be said that in the Internet era is the golden thing of financial leverage, 30 times leverage belongs to the drizzle, 100 times the leverage is just right, that is, hundreds of times the leverage is not nothing, which has caused a large number of stock market bubbles, and has long been a large number of Internet upstarts and tycoons, Google, Amazon, etc. are all in this time period, but they are not famous in that period, but with the bursting of the Internet bubble, a large number of Internet companies were eliminated, leaving those best companies.

"Brother Wang, don't tell anyone about this matter first, I will come to the United States in June, and then I will play with those Wall Street elites in the stock market, there are some things we are not familiar with, you are an economist, I will hire you to help me operate, of course, provided that you agree!"

Liu Lang extended an invitation to the other party.

"Mr. Liu Lang, don't worry, I don't understand other things, but there is no problem in the economy and the stock market, as long as I can do it, I will do my best!"

Anyone can see that Liu Lang must be a big man in the future, and he is also a very big person, so it is also his honor for the other party to value himself.

"Okay, then I'll call you, Brother Wang, and the two of us will join forces to make a big fuss in the Heavenly Palace!"

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