On May 26, 1992, the day the liquidation operation was completed, the Kyoto index fell to close at 1,328.17 points, down 9.24%, which was also the largest one-day decline since the opening of the Chinese stock market.

The Kyoto index reached the highest point of 1478.14 points in the previous trading day, which became the highest point of the first bull market after the opening of the Chinese stock market.

Because the Shenzhen Stock Exchange of the Chinese Empire was canceled at the last moment of its establishment, the Kyoto Stock Exchange is the only one, and the operating data of the Kyoto Index is different from the Shanghai Composite Index in the previous life.

In Yu Ming's memory, the highest point of the Shanghai Composite Index on May 25, 1992 was 1428.79 points, although the price of individual stocks and the range of rise and fall are the same, but the index has been distorted.

May 26 was also a watershed for the bulls and bears in the Chinese stock market, and the Kyoto index since then has been green, fat, red and thin, and has entered a downward channel.

Generally, the stock market has fallen by more than 20%, and the bull and bear conversion of the stock market can basically be judged.

On June 3, 1992, the Kyoto Index closed at 1095.65 points, down 25.88% from the highest point of 1478.14 points on May 25.

In the bear market stage, although there will be a small number of individual stocks will come out of the independent bull market, but that is impossible to analyze and grasp, if you deliberately grasp this kind of one-in-a-million stocks, the probability of success is almost zero, the risk is far greater than the return, indicating that it is a mature investor, this kind of stupid thing will not be done.

If there is no very clear and definite investment opportunity, Yu Ming will not carry out high-risk operations such as grabbing the rebound and speculating in the short term in the bear market.

Yu Ming has the impression that during the first round of the bear market, there is an investment opportunity, and this investment opportunity is the stock split.

At present, due to historical reasons in the stock market, there are many stocks with a face value of 100 yuan and 50 yuan, and after the promulgation of the new company law, these stocks will expand their share capital because the total share capital does not reach the minimum number stipulated by the listed company, and the first way to expand the share capital is to break down these stocks with large face value.

In the bear market, after the stock split, because of the expectation of filling the right, it has become the only hype theme, as long as there is a stock split, there will be speculation, and the increase is not small, the highest increase can reach 40%.

After conducting a risk analysis on whether to intervene in the speculation of stock splitting, Yu Ming decided to give up for three reasons.

First, the date of the stock split of individual stocks is unknown, must be intervened in advance, if the advance time is too much, in the bear market, the intervention of the stock fell greater, after the stock split, the profit shrunk sharply, if you encounter the stock after the stock split speculation is less forceful, it is even possible to lose a large amount.

Second, the speculation market after the stock split is generally only one day, if the involved funds are too large, the shipment will be a problem, if the involved funds are less, the shipment is convenient, but the profit is also less, there is no meaning.

3. The stock will be suspended for a few months before the split, and the intervening funds will be frozen for a few months, and the time cost of the funds will be higher, and other investment opportunities will be lost.

Yu Ming decided to temporarily withdraw from the stock market and enter the dormant period of stock market trading, only those who are good at shorting positions in the bear market can live long in the stock market and will not be swallowed up and eliminated by the meat grinder of the stock market.

So how long is the dormancy period?

Theoretically, it is necessary to enter the stock market when the bull market is established, but the amount of funds is relatively large, more than 25 million yuan of funds is not a small amount, almost equivalent to the small private equity funds on the earth in the previous life, the opening and clearance time is longer, if the bull market is established, the increase has exceeded 20%, plus the amount of advance when the clearance, then in the entire bull market stage, pinch the head and remove the tail, the profit will be greatly discounted, which is not in line with the operation concept of maximizing the interests of the metaphor.

The bear market turns into a bull market, first of all, we must probe the bottom, and then go through the bottoming stage, under the influence of many bullish factors, slowly rise by about 20%, before entering the main rising wave stage.

The amount of funds specified in the metaphor is allowed to have a loss of no more than 10% in the early stage of opening a position, so it is necessary to determine the time to open a position in a period of about a week before and after the stock market bottoms.

In Yuming's experience, at the end of the bear market, from the highest point at the beginning of the bear market to the lowest point after the end of the bear market, there will generally be a decline of 80%, just as the highest point is generally not the closing point, this lowest point is generally not the closing point, Yu Ming is calculated according to the closing point is calculated after the lowest point rises by 5%, plus the allowable 10% loss range, the market entry point is the closing point of the stock market after falling from the highest point to 65%.

Based on the highest point of the first round of bull market of 1478.14 points, excluding the impact of the stock market expansion on the index, it is stated that the starting point of opening a position is 517.35 points.

In other words, when the Kyoto index closes below 517.35 points, it will start picking stocks and opening positions.

……

Thursday, 4 June 1992.

A long-awaited news was published on the local area network of Huaqing University, and the work of changing departments and majors in 1992 was officially launched.

Submit the application before June 8, take the exam on June 12, and announce the list of students who change departments and majors on June 15.

This year's change of major is about a week later than in previous years, and the scope of this change of major is that, of course, in addition to orientation students, any student in the first year of college and the second year of college can apply for changing majors to any major.

The main condition for changing departments and majors is that the academic performance is good, and the department you want to transfer to agree to accept it.

Not all the exams and interviews have passed, and if you meet the conditions, you can change departments and majors, and the school has index control over each class, and there are only 4 places in the 911 class.

Shortly after Yu Ming registered as a freshman last year, he asked counselor Sun Zhi about changing departments and majors at a class cadre forum, and the classmates in the class knew that Yu Ming wanted to change to a finance major.

Under the subtle influence of Yu Ming, the number of applicants for the 911 class this year is more than that of other classes, and Yu Ming estimates that the fundamental reason is that the elf beauty Sevilleia in the class also applied for a transfer to a finance major, and several boys in the class followed Sevilleia to apply for the most difficult to transfer to a finance major.

Yu Ming's three roommates, Jia Xiaohong, Huang Chong and Zhou Meng, were very assertive, insisted on their original choice, and did not apply for changing departments and majors.

Although Huang Chong did not change majors, he brought up the topic of changing departments and majors many times before going to bed at night, and he also had a fierce argument with Yu Ming.

……