Volume 3 Chapter 69 Two madmen pit a street called Wall
After buying a car, Li Sheng took Tia to pay homage to his parents. Pen "Fun" Pavilion www.biquge.info then returned to Lingang to visit Liu Ruocheng's parents and Chen Bo's parents. also went to Luo Zheng's house. And, of course, a trip to Anthony's house. Then I went to the mall for two days, bought some furniture and daily necessities, and officially moved to my new home.
After a few busy days, the Spring Festival is coming. Li Sheng kindly gave Yang Yue a few days off, so that she could celebrate the New Year with peace of mind, and she could come back to work on the fourth day of the Lunar New Year.
And he and Tia's Chinese New Year's Eve was spent with Anthony's family, and on the first day of the new year, he went to Chen Bo and Liu Ruocheng's house to pay New Year's greetings. Then stay home and watch the curve of soybean futures.
China has a holiday because of the holidays, but the United States will not have a holiday. He saw that Cargill's share price had fallen to 20% of its pre-crisis level and began to fluctuate. I felt that it would be riskier to continue, so I immediately liquidated the options in my hand.
Because of his liquidation, Cargill's stock price immediately rose a bit.
If Li Sheng can slowly close the position, the return will definitely be higher. But Li Sheng is not an institution, and there is a large group of people who operate in a scattered manner. If he wants to close his position slowly like those bookmakers, once people find out, the loss may be greater than the forced liquidation. Now, because of the need to close the position at a relatively high price, the profit is about 10% less than the book profit.
And Li Sheng calculated this income, although there is a loss, there is still a gross income of 7.6 billion US dollars after tax. After this money is returned to Brazil to pay taxes, there should be more than $5 billion in net gains.
After he closed the position, he kept staring at the curve of soybean futures. These nights, he has been staring at the trading volume and curve changes of soybean futures. He vaguely felt something.
That night, he looked at the curve of the Chicago Mercantile Exchange soybean futures for three months.
He analyzed for more than two hours. It's still uncertain whether this fluctuation will be cleared by the market maker or whether it is going to be shipped or closed. Although he thinks it should be the former that is more likely. Because now the three-month soybean futures are about to be delivered in another month. And the short position is still very large. The two sides are still playing, but the market is clearly bullish. It is easier for multiple parties to take the initiative. The bears can only try to resist the bulls' attack before the delivery. As long as they can withstand it, they will not blow up and lose all their money.
After thinking about it, he finally decided to take a gamble.
The next day, he first said hello to Luo Zheng and Chen Bo. Finally, I called Ali again.
Ali listened to his plan and said, "Anyway, I also make a lot of money, so I'll go crazy with you again." ”
Li Sheng's plan is simple, and the reason is simple. He plans to throw out a portion of the soybean list. Mainly in the European market, but still retains the majority of the positions held on the Chicago Board of Trade. The reason for his doing this is mainly to see that there are more long orders recently, and the orders thrown by the bears are too late to appear in the data. If he throws out a partial order for these purchase orders to be eaten, he will not lose money because of the operation of large orders.
Doing so will increase the average price of the positions of those long market makers. Some of the bears will be able to get out. If the bulls want to get the benefits they expect, they will have to push the price of soybeans higher. And because Li Sheng was able to withdraw from the market because of the selling, the short side may also go long on the backhand in order to reduce losses. That would also push futures higher.
In this way, he can get more benefits by doing nothing at all that he has left.
In fact, in recent days, he has touched the truth of the speculative market. That is, the book value is not the real value.
For example, stocks. The price in the market does not really represent the value of your stock, but only the average price of all transactions in the previous five minutes. If the market volume is relatively small, this price is easy to manipulate. If he is a market maker, he sees a large number of retail investors holding on to the stocks. Well, he can show that he has made a large number of large sell orders or a large number of buy orders.
If the market price does not move in the way he expected, he can sell the calculated number of shares from one account to another. It is easy to pull up or down the market price.
This is also why the stock market has to be cleared to clear those small retail investors. One is that it is easy to control the stock price. The other is to let these retail investors watch the stock price soar and be greedy, so that they can be shipped in the future.
However, when the market is cleared, it will increase the cost of the market maker's operation, one is stamp duty, and in the shock stock price, they also need to lose money, or take the initiative to increase the average price of the purchased shares. Especially when doing futures, they always have to lose one hand in the trade between the left and right hands.
Therefore, when the market maker completes the receipt, they must increase the stock price to a certain extent to ensure a profit. In fact, for retail investors, no matter how high the book value is, as long as they are not sold, those stocks are actually worthless. There's an old saying that is most appropriate in the stock market – money in your pocket is real money.
The same is true in the futures market.
Now there are a lot of buy orders for three-month soybean futures, but the trading volume is very small, as if it is deliberately controlled. That's the bookmaker controlling the rate at which the average price increases. If Li Sheng throws a big order at the price they paid for, let them eat it. Their average price will increase significantly because of the high price of the position.
In the future, if they want the planned profit, they can only work hard to make the price of the order in hand higher. As long as they do so, then Li Sheng's list left in his hand to act as a rat warehouse will also benefit from it.
Of course, maybe those bookmakers will simply stop playing when they see him doing that, and sell immediately. But Li Sheng still felt that he could take a gamble. Because physical futures are not the same as stocks. Futures have a limited delivery period. March soybean futures are approaching the delivery date. The previous short positions were too large, and a considerable part of the list thrown out by Li Sheng was eaten by the buy orders of many parties. Therefore, there are still many short parties, and the more the delivery period comes, the more short side buy orders to close the position, and the higher the price will be. The price of soybean futures in March will only rise, not fall. Under such expectations, there are still opportunities for multi-party bookmakers to make money, and they are likely to endure swallowing the dead rat thrown by Li Sheng.
Ali, like Li Sheng, threw out half of the list first.
He laughed on the phone and said, "It would be nice to make those Yankees make less money." He also knows that he may not make more money by doing so than by waiting until a better time to throw all the orders. But it seems safer to do so. At the same time, it can disgust Wall Street.
The two of them did that, and they were really disgusted with Wall Street.
Many of Wall Street's high-end offices burst into flames of words starting with F almost at the same time.
The rat bin, which accounts for 10% of the market, was thrown out at the price of their piled up buy orders, and they swallowed it without even having time to react. This can be regarded as gouging a large chunk of their profits.
And even if they knew who did it, they had to hold their noses and endure it. If they sell now, Li Sheng and they will definitely follow. Li Sheng: Their average price is lower than theirs. Even if the selling price is lower than theirs, it still makes money. Don't worry about not paying. Now those empty squares are waiting to sell the order. So now that they are selling, they can only be the ones who will be pitted in the end. Now they can only hope that Li Sheng can also follow them to hold the rest of the list to the end, and then everyone will make money together.
But Li Sheng didn't plan to do what they wanted. Five minutes before the market closed in Chicago on the ninth day of the new year, he threw out all the orders in his hand. invisibly pit those predators again. Some people hate it, but they can't do anything about it. This is the rules of the game for the Money Empire.
Wall Street, both long and bearish, was annoyed by his manipulation. If the profits of many parties are reduced, they will have to continue to pull up the futures price. Although a small part of the bears were able to escape because of their liquidation and did not blow up, more could only continue to wait for the bulls' butcher knives to rise higher and higher, and when the knives fell, their wounds would be deeper and they would bleed more.
Ali, like Li Sheng, threw out all the lists in his hands almost at the same time. After throwing away all the lists, Ali immediately called Li Sheng.
He laughed heartily on the phone: "Haha...... This time it was a loss for the Yankees. "He made nearly $5 billion from this operation - when he opened his position, it was lower than Li Sheng's average price, and the additional cost of the operation was almost none. And the money was actually taken out of the pockets of those giant crocodiles on Wall Street. So what he said was not wrong, they did make the Yankees suffer a loss. "Maybe they're eager to eat us now."
Li Sheng smiled and said, "Anyway, I won't be playing with them in the future." Let them be depressed. By the way, I'll give you back that money. ”
"Good. Tomorrow I will ask my lawyer to go to Huaxia with the contract to find you. ”
After Li Sheng hung up the phone, he looked at the number of funds that had been transferred. Excluding the cost, he made about 20 billion this time. An insane number. The money doesn't quite belong to him yet, as he will have to pay a tax of nearly half a billion dollars when he returns to Brazil. But the rest is enough for him to sit and eat luxuriously for a lifetime.
On the evening of the tenth day of the Lunar New Year, Luo Zheng, who had made a lot of money, invited him to the Blue Moon to celebrate. It turned out that neither he nor Chen Bo closed the position when Li Sheng threw the order for the first time, but waited until the second time. It turned out to be a wise decision, he was operating with eight times leverage, and after holding the order in his hand for three more trading days, he made tens of millions of more pure profits in RBM.
Li Sheng didn't want to go. After all, Tia was by her side, and he was going back to the farm in two days, and wanted to spend more time with her.
However, Luo Zheng said: "Let my sister-in-law come too." They are all friends of me and Bogo. It wouldn't hurt for my sister-in-law to know more people. ”
Li Sheng thought for a moment and felt that what he said was right, and he really should let Tia see some life that she had never been exposed to. But he didn't agree right away. Instead, he asked Tia if she wanted to go.
Tia doesn't have much of an opinion yet, anyway, she just thinks she can be with Li Sheng.
So Li Sheng took her to the Blue Moon Club.
Of course, Yang Yue also followed, but after Li Sheng and Tia entered the private room, she stayed outside the door and found a place to sit down.
Li Sheng entered the box and found that this private room was no longer a private room, but more like a small banquet hall.
When Luo Zheng saw the two of them, he greeted them and said, "Brother Sheng, why are you only here now?" "You bowed your head and said to Tia." My sister-in-law is so beautiful today. ”
Li Sheng had a smile on the corner of his mouth, looked down at Tia who was flushed on his face, looked up and said to Luo Zheng, "Okay." Stop teasing her. I'm just taking her to see it today. (To be continued.) )