Chapter 522: How to Make Money in a Stock Market Crash

"So, tell me when you're done with this book, and I'll go to China to find you myself!"

Don't look at Professor Wilson as a well-known economist in the United States and even the world, but they never have too high an identity for the "God of Wealth", or that sentence, as long as you have enough value in the United States, even the President of the United States will talk and laugh with you.

"Professor, you don't have to go to China, I came to the United States this time to actually prepare to go to university, so it is likely that I will live in the United States in the next few years, and you don't have to be so troublesome if you want to find me!"

Liu Lang replied with a smile.

"What? You're going to college, aren't you already a college student?"

The other party was taken aback.

"I'm here for graduate school!"

"Graduate student? Okay, I have absolutely no problem with your ability, so which university do you want to go to?"

Liu Lang said that he came to the United States to study as a graduate student, but Wilson was not surprised, for a person who can write a book like the tertiary industry wave, let alone a graduate student, even a professor should be.

"I have applied for a special place for graduate students at Stanford University, and I will take the written test and interview in June this year, and I can become a graduate student at Stanford University after passing!"

Liu Lang's words were flat, as if this matter had been settled.

"Stanford, what did you study?"

Hearing that it was Stanford University, Wilson was a little uneasy, although this university is not as good as Harvard, it is also one of the top five universities in the United States, can Liu Lang, a seven-year-old child, really pass the exam?

"Of course, it's still the old job, and I learned to be a construction machine!"

"Alas, you! It's a waste not to study economics, but it's okay, your talent is okay to learn anything, then I will celebrate you in advance as a student at Stanford University, learn knowledge well for the benefit of the whole mankind!"

The two sat here talking, and the others listened quietly, and everyone felt that their heads were a little insufficient.

"Is it a dream that a seven-year-old child applied for graduate school at Stanford University?"

They were full of curiosity about Liu Lang before, and always wanted to see what the legendary child looked like, and today they finally saw it, and it was really different, sitting there and talking to Wilson, an economics master, but when they heard that the other party said that they were going to Stanford for graduate school, or special enrollment, most people still didn't believe it.

Whether these people believe that it has anything to do with Liu Lang, the main purpose of his visit to Professor Wilson this time is to meet each other, and he also settled the manuscript fee for these three months.

More than 100,000 US dollars in hand, all the money was placed in Sheng Tang's account, Liu Lang specially instructed Lin Guodong not to touch the money in the past three months except for necessary expenses, and he also secretly discussed with Louis Wang how to make money during the stock market crash.

The stock market crash is a disaster for all stockholders, which is very understandable, because all stockholders want the stocks they buy to rise, of course, those bookmakers will also short a stock, sell high and buy low to earn the difference, but this is a "premeditated" fall, although ordinary stockholders are unlucky, but the bookmakers behind the scenes make a lot of money.

So whether the stock market goes up or down, as long as someone can make an accurate prediction, then they can make a lot of money in the market, that being said, how many people can make an accurate prediction?

Those so-called stock analysts can roughly judge the short-term trend of a certain stock with well-informed information, and it is even more difficult to judge the rise and fall of the broader market.

Liu Lang now has the prerequisite, the Dow Jones index will fall by 500 points in one day, what King Louis has to do is how to make more money under this premise, this kind of thing is too simple, not to mention economic experts like Louis, even ordinary stockholders know how to do it.

"The broader market index plummeted by 500 points in one day......... It's horrible!"

Louis Wong still couldn't believe it could be true.

"Liu Lang, there are many ways to make money in the case of a stock market crash, for example, you can sell all the stocks the day before, and then wait until the market falls to the lowest point, if the market index plummets by 500 points a day, which is equivalent to 20% of the Dow Jones index, this is probably also falling to the bottom, at this time and then buy a lot of money, then with the slow increase of the market, you can earn a lot of difference, if you have a million US dollars, according to my estimates, you can earn 20,000 US dollars a day!"

Louis Wang proposed the first plan, which is a common shorting method, sell at a high price and buy back at a low price, and then wait for the stock price to recover, and make money every little bit of a rise, although it may not make much money every day, but over time it is considerable, and some stocks can double their stock prices in a month.

"Too little!"

Liu Lang shook his head and immediately vetoed the plan.

"Well, in fact, the fastest way is to futures stock index, U.S. futures are divided into commodity futures and financial futures, the subject of commodity futures is physical, such as crude oil, gold, silver, copper, aluminum, sugar, wheat, rice, etc., the subject matter of financial futures is non-physical, such as stock price index, interest rate, exchange rate, etc., and stock index futures are futures contracts with stock price index as the subject matter, and the popular understanding is that the stock price index is the object of the price guessing game, which can be bought up or down, and the bullish person is called long, and the bearish person is called short!"

Luis also proposed a futures stock index.

"And how profitable is this plan?"

Liu Lang asked.

"The price multiplier of the Dow Jones index is $300 per point, that is, the profit and loss is calculated according to the price of 300 yuan per index point, the long profit is 300 yuan for every point that rises in the index, and the loss for the short is 300 yuan, and the short profit is 300 yuan for every point that the index falls, and the long loss is 300 yuan, and each account must have a margin of 20% of the index at that time, for example, the Dow Jones index is 2000 points at that time, then the margin is 2000 * 300 * 20% is equal to 120,000 US dollars. ”

Louis replied.

"It's only three hundred dollars?

According to the price multiplier of $300 per point, even if it falls by 500 points in one day, it will only be 150,000 US dollars, Liu Lang has more than 1 million US dollars, and he can set up more than a dozen accounts, each account is 150,000 US dollars, and 10 accounts are 1.5 million, which is still too little, Liu Lang wants to make him tens of millions in this stock market crash.

Hearing Liu Lang say less, Louis couldn't stop complaining in his heart, making 150,000 yuan in just one day is too little, this kid is really "insatiable"!

"Of course, there is also a kind of called leveraged futures stock index, this kind of futures stock index is similar to gambling, for example, if you have 500,000, think that tomorrow's stock index will fall by 50 points, then you can submit a request on the stock exchange, 500,000 in the form of triple leverage to make an announcement, any company can bet with you, that is to say, if the stock index falls by 50 points on this day, the other party who participates in the bet will lose to you 1.5 million, of course, if it does not fall by 50 points, your $500,000 will lose to the other party, but the premise is that someone bets with you, if no one joins the announcement, it is useless!”

Louis came up with another plan.