World Financial Center, Manhattan, New York, Merrill Lynch Securities Center Sales Department 1st Branch

"I said, it's not okay for the G3 fund to go on like this, and the customers of our business department have been pulled away by this kind of aggressive fund that Old Wood has made up!" David Lynch chewed gum in his mouth, and complained to the general manager of the sales department behind the desk, Old Ston, as the ace A-level salesman of the sales department, David Lynch, who has an annual salary of $250,000, also manages the G1 stable investment fund portfolio under the management of the first business department, and in the past year, the average return of the G1 fund is 15%, which is quite a dazzling achievement.

"Well, this, it's indeed a headache, Old Wood's G3 fund, the actual operator is Ye Django, who knew that the luck of this yellow-skinned rookie would be so good, the net value of the G3 fund increased by 22% in just three weeks, in the face of this kind of achievement, even the big boss will not turn a blind eye, not to mention those salesmen of the first and second departments, for them, it is a natural instinct to choose high-yield investment varieties for their customers, and they can't force them to subscribe to only one of our internal funds, right?"

Of course, Old Ston is also a belly of envy and jealousy, in terms of seniority, he is less than Old Wood for five years, but he is also a senior manager of Merrill Lynch, when competing for the general manager of the first business department, Ston Tong Guò Some of the means that cannot be put on the table are very pitted Old Wood, so that the deputy manager of the first department who had the opportunity to take the position withdrew from the competition for department manager.

Fortunately, Old Wood's connections in the central sales department are not ordinarily good, although the performance is almost good, the boss still gave him the establishment of a sales department, but the salary increase is limited, and there is only one thorn Phoenix plus two rookies and a freckled secretary under his hands, who knows, the guy named Django is actually a genius? The G3 fund's dazzling report card dwarfs the rest of the internal funds in the entire central sales department, and it is not surprising that the risky trading method of intraday high-frequency trading is criticized behind the scenes.

"Head, I'll tell you the truth, that kid really has a hand in trading, can we also set up a new fund, let's also take the road of investing in big blue chips to do intraday speculative trading, and the fat water will not flow into the fields of outsiders, right? Merrill Lynch floor trader Reece Norton is your old subordinate, you know what I mean? "David Lynch's method is very simple, he wants to set up a new fund in business, and the operation will follow this G3 fund, buy in advance when you buy it, and sell it in advance when you sell it, and you are not afraid that the performance will not be as good as the G3 fund......

"Nonsense, the style of the G3 fund is very weird, I have been studying the transaction returns of the G3 fund for two weeks, I tell you clearly, the risk is extremely high, although the two stocks of GE and Ford have earned 22% of the return, but with the style and habits of G3 fund financing and full position short buying and selling, once the direction is reversed or the timing is wrong, it may be out of the basket, let alone encounter any black swan events in the stock market...... Do you think day trading is a new term? This thing, the risk is much greater than the opportunity, not just anyone can play it! ”

Old Ston's words are a bit in line with the identity of the general manager of the business department of Merrill Lynch Securities Center, the dismantling of the platform is not impossible to do, the problem is, there is no three, two, three don't go to Tianwang Mountain, David Lynch is good at discovering high-quality customers is an ace salesman, but on the management and operation of the G1 fund, David's ability is also the middle and upper, which is also the root of the G1 fund's style is stable, stable means the least number of operations and as accurate as possible buying and selling prices......

"Head, I have an idea, in order to catch the ride of the G3 fund, and at the same time retain our original customers, can we let the boss give a notice, in the future, all direct customers who do not belong to the third business department can only subscribe to the internal funds of the first and second business departments, and we, several internal funds such as G1, G12 and G13 funds are used to subscribe to the G3 fund with three departments, in this way, although the large amount of commission income generated by intraday trading is still the performance of the three departments, But at least the client's account and funds are left on our side, and when the time comes, when our own aggressive fund is formed, we can redeem the G3 fund and subscribe to our own fund, which is no problem, right? ”

David Lynch thought that his method of borrowing arrows from a straw boat was very clever, but he didn't expect his boss to scoff and grin,

"You think Old Wood is a fool? There is a threshold for the G3 fund subscription, between $20 and $1 million, not to mention that people only accept the subscription of individual investors, and do not accept the subscription of institutions and other funds, so your method will not work, unless the big boss makes a decision to force Old Wood to make concessions, however, the big boss may not do this, the G3 fund is a venture capital fund, put the eggs of the central business department into this basket, once there is a mistake and causes heavy losses, Django Ye patted his ass and left, how to clean up the mess? ”

"I said, this can't do that, we can't just watch our customers and investments slowly become the customers and funds of the third sales department, right? Then we worked hard to dig out customers to improve performance, and in the end, everything was in vain, and we became the sedan chair for the third business department and the G3 fund, right? That kid How can he be, at this time, the share of a G3 fund is almost more than the share of our G12 and G13 funds, and it has actually obtained the highest priority financing authority, and the financing fee is 0.5 percentage points less than that of other funds! It's so unfair! ”

David Lynch is a little angry, he is a confidant brought out by Old Ston, so usually the two of them can be honest with each other, what to say, now it seems that no way can be taken, but watching the third business department and the G3 fund attract the customers of other business departments like a big sponge, this thing is unbearable in front of anyone, right? In particular, the threshold of the G3 fund is 200,000 US dollars, and Nima is tantamount to leaving small and medium-sized retail investors to one or two parts and abducting high-quality VIP customers, how can this work?

"David, the beginning of the year is over 30, if you want me to say that you are compared with that kid, you are too rough, Merrill Lynch everyone eats with their ability, performance is king, no matter how famous you are without performance, other salesmen will not sell it, G3 fund, not everyone can learn, but G1 fund is a stable type, you don't toss, but G12 and G13 two graded funds, I plan to operate personally, as you said, let's take follow tactics, When the time comes, not only will you have to make a big profit to improve your performance, but you can also teach the G3 fund a lesson......"

Old Ston comforted his henchmen, while gritting his teeth in his heart and decided to cheer up and operate, not believing that the limelight was robbed by Old Wood, Norton, one of the traders on the floor, and he was a hardcore buddy, and when the time came, he first traded the orders of the G12 and G13 funds, so that the cost was lower than G3 when buying, and the price was higher than G3 when selling.

The next day is Tuesday, the market is full of rumors that GE wants to buy the remaining 50% of Saab Motors, and the stock price of General Motors GM is fluctuating significantly, but Ford Motor has become a bit of a new favorite in the stock market, but the rumors in the market are limited to if General Motors' performance is affected by the Saab acquisition, then Ford, the second largest automaker in the United States, obviously has a chance to catch up, and this also constitutes the starting point for investors to shift their positions from General Motors to Ford Motors.

Merrill Lynch Securities Center Business Department Division 3

"Hi Dominic, it's me, Django, G3 Fund started short selling Ford Motor at 55.75, right, start short selling after all existing positions are closed, how many shares can I short sell?? 4.28 million shares? First short 1 million shares, wait for the stock price to reverse, then short 1.5 million shares, and finally when the reverse draw, the remaining 1.78 million shares are all shorted, and they have been shorted...... Don't think about the price of covering and closing the position! Yes, I'm sure! ”

Jiang Yelin's instructions were unexpected suddenly, not only Phoenix and Marbury in the third sales department were at a loss when they listened to it, but even Dominic, the floor trading assistant on the other end of the phone, didn't believe his ears, he had gained a lot from the G3 fund in the past week, how? This is at the top, do you want to go short with a backhand?

Ford's stock price displayed on the market terminal, as the floor traders executed the short selling order, began to turn around at the price of 55.75 downward, because the average daily trading volume of Ford this week is also around 10 million shares, so the G3 fund threw 1 million shares of chips suddenly hit the stock price from $55.75 / share to $55.25 / share, and then with the influx of bottom-buying orders, of course, because the first round of entrustment to sell 1 million shares has been sold, The stock price rebounded to 55.50, but less than 200,000 shares were traded during the rally.

10 minutes later, Merrill Lynch's floor traders threw out the second wave of 1.5 million shares of Ford held by the G3 fund, and the stock price turned around from $55.50 and dived directly, this time the buying orders undertaken below were obviously not as good as the previous wave, the stock price fell all the way from $55.50 to $54.00, and the Ford stock price fell nearly 3% in just 10 minutes, and the side effect of this wave of diving was that other industrial blue-chip stocks also dived, and General Motors even fell 2.5%, It fell from 60.125 to 58.625.

Immediately after the third wave of 1.78 million shares of Ford Motor sold orders directly destroyed all the resistance of Ford stock bulls, you must know that when the average daily trading volume of 10 million shares, in the afternoon in just half an hour suddenly poured out 4.28 million shares of the sell-off that is definitely a fatal thing, Ford's stock price from 54.25 all the way to the wild, and because the two consecutive bottom-copying funds have been set, leading to the trampling effect of more killing.

Investors who had bought 2.5 million shares just now joined the short-selling army, and Ford's stock price fell from 54.25 to 51.50, a drop of 7.2%, and the day's trading volume increased sharply to 15 million shares. At the same time, the dive in blue-chip stocks dragged the Dow and the S&P down 1.8% each, and the already volatile share price of General Motors fell as much as 5%, from 60.125 to 57.125.