Chapter 100: The True Art of Trading
With the news of the possible strike of Chile's state-owned copper company, the entire copper futures market is like a bucket of blood in the sea, which immediately attracted many predators to enter the market.
Establish a long position at a low level, and then release news that is conducive to their manipulation direction, and then gradually pull up the price, in the process constantly throw away the bottom position, throw all the chips to the investors who follow the trend, and when the price reaches their expectations, they begin to reverse short, and at the same time spread the news, which is a common trick in the capital market.
Between a rise and a fall, the main bulls made twice as much profit. Naturally, in this process, in addition to the ordinary investors who took over at a high level, there are also the managers of speculative funds who think they are smart.
Today's copper contract is close to tens of thousands of dollars per lot, and the funds that can manipulate the market are all investors with hundreds of millions of funds, and even billions of dollars of capital are making waves in it, so even Zhongshi has to play twelve points at this time, for fear that one will be accidentally trapped.
The plane landed at Heathrow Airport, and Andrew and the others were already waiting outside the airport. In addition to Andrew, there are several traders who rushed to hear the news, they are all traders of Tianyu Fund, but when they entered Tianyu Fund, Zhong Shi has gone to the United States, so they are very curious about this manager who has only heard of him, and because Tianyu Fund has made hundreds of millions of dollars in the copper market during this time, they are even more curious about this slightly mysterious fund manager.
When they saw Andrew at the exit greet a slightly thin young man and hug him warmly. These traders, who usually look above the top, were all dumbfounded, and one of them, a young trader named Zhou Shijie, screamed strangely and said in disbelief: "Is this our manager?" ”
"Probably not, maybe it's Andrew's friend?" A weak voice sounded, it was another trader, named Zhao Shangming.
In London, Tianyu Fund sent a total of four traders, the other two are Lu Xisheng and Ampit, which are their Chinese names. However, they usually refer to each other by their English names.
"Zhong Sheng, let me introduce you. This is Jack and this is Andy. This is Pete, this is Derek. Andrew brought Bell Stone to the traders and introduced them one by one.
Zhong Shi nodded slightly at the crowd, after Andrew's introduction. He said, "Xiexie Everyone's hard work during this time. We're going to continue to make big moves in the future. I also look forward to your continued support. ”
As soon as his voice sounded, these traders confirmed that the person in front of them must be Zhong Shi, because these people had all heard Zhong Shi's words from the phone.
"Hello Zhong Sheng!" The few people who understood it immediately became a little submissive. After half a minute of cold play, he came to his senses and greeted Zhong Shi one after another.
Zhong Shi was no longer surprised by this situation, he nodded and smiled again, and followed Andrew out of the airport. In the parking lot of the airport, he saw four brand-new Land Rovers parked in front of him in a row, and couldn't help but be a little dumbfounded, and turned to Andrew and asked, "This jiashi?" Isn't it a bit too much? ”
Andrew sneered: "These are the private cars of the traders, and they heard that you were coming, so they wanted to come and have a look." You're the boss after all......"
Zhong Shi stopped talking and got into a car at the front. He knows that although the price of Land Rover is not cheap, it is nothing compared to the salary and dividends of the Tianyu Fund, just like Andrew, ten or a hundred Land Rovers can afford it.
Bang bang bang, after several successive door closings, this line of extremely conspicuous Land Rover motorcade drove towards the city.
……
"Zhong Sheng, you just came to the UK, or do you want to reverse the jet lag first, and then we will enter the operation after the break?" In the wide carriage, Andrew asked tentatively.
"No need, I'll just rest for a night." Zhongshi shook his head, signaling that he didn't need to. First, he is still very young, and secondly, the current market situation is urgent, and missing every trading day can be a loss of millions of dollars, which makes him very unwilling.
According to the memory of later generations, he knew that now is the time when Yasuo Hamanaka is crazy to raise the price of copper, and then with the slowdown of Shijie's economic growth, the demand for copper has also declined.
"I'll be in tomorrow!" Zhong Shi said a little coldly to Andrew, then closed his eyes and said no more. Andrew, who was beside him, saw this scene and knew that it would be superfluous to say anything, so he had to stop talking, but he was lamenting in his heart that the hope of pulling Zhongshi to go to a nightclub with him was dashed again.
……
On Monday, October 24, copper futures opened at $2,544, unchanged from the previous trading day. The bears began to attack shortly after the market opened, while Zhong Shi opened a position at a low level, and the strategy he gave was to be one level higher than the market price, and the result was naturally to fill the short orders in the market one step ahead of other bulls. However, because the bears are only a temporary downward attack, when they feel the support of the bulls began to close their positions, they seem to be aware of the layout of the bulls, and when they finally have a lower position, they can't wait to close the previously established short positions, which coincides with the intentions of some bulls, the two sides began a large-scale liquidation at a price of about $2545, and finally the bears closed more positions, so that the price of copper futures rose slightly, closing at $2550.
On October 25, the day before, the long and short sides closed some of their positions in October and early November, and the main force of the two sides moved to the contracts in November and December, which means that the temporary peace of the copper market will be broken again.
"Open 100 hands!" Zhong Shi stood in the middle of the trading floor, facing the traders, and shouted loudly.
In the previous trading day, after Zhongshi entered the market, he only made a short long position of 500 lots, because the market was facing a large-scale balance. The liquidity of the new month contract is very poor, so only such a small lot size can be made.
However, in the options market, he once again ate more than 1,000 long contracts, making the total number of options contracts reach about 2,500 hands, because close to November, the long contracts that are not intended to be fulfilled in the options market began to sell, due to the rise in copper prices on recent trading days, the price of these options contracts has also risen, and the party holding long options has taken the opportunity to sell, which has also increased the liquidity of the options market.
That's it. Together with the current copper futures contract. Zhongshi has a total of 5,000 contracts held, and if this is absorbed in the copper futures market, it will definitely cause sharp fluctuations in copper futures prices, and may even attract the attention of the main bulls. If so, Bell Stone's strategy will be recognized. It's not easy to absorb chips on such a large scale.
A long order of 100 lots is not remarkable in the market. After two or three minutes, all of them were filled, and the average price was $2,565. However, it did not take long for the price of copper to rise sharply, rushing to around $2,570 in one fell swoop.
"There's a main force coming in?" See this scene. The first reaction of almost all investors is this, because according to the current trading situation, it is generally a dozen or dozens of lots between one or two prices are frequently traded, and the daily trading volume is increased in such a situation. Suddenly, the price of copper rose by nearly five levels, and the following sell orders and long exchange orders must have been swept away.
Zhong Shi looked at the board with some doubts, he was not sure if this was a short-term pull-up, or if the main force of the bulls was exerting force again, trying to influence the operation of the follow-up market. However, he immediately reacted that this was a good time for him to enter the market, and in any case, the rise in copper futures prices was beneficial to his operation.
"Open 1,000 more hands!" Zhong Shi said categorically. Traders are already somewhat accustomed to Jongshi's orders, and if Jongshi does not increase the price after speaking, then it means that the operation is carried out at the immediate price. The traders were a little surprised at first by the large lot size of 1,000 lots, but they faithfully executed their trading orders.
Just now the long single copper price rose to about 2570 US dollars, it was a little stagnant, the bears took the opportunity to open a large amount of short opponent positions in this position, but just to Zhongshi has a counterparty, 1000 hands of buy orders into the market, quickly matched, in one fell swoop will be the position of the short position to eat, copper prices in a stagnant period after rising again.
"It's 2580!" After the current copper price rose to the $2,580 level, Andrew walked up to Zhongshi and said worriedly. Zhong Shi immediately understood what he meant, just 1000 hands of buy orders caused the following of the trend, the market of short orders were swept away, now to the integer point, the trend of the market will inevitably begin to close positions, now if they do not continue to rise, they will face the danger of falling.
"Close the low price long position by 500 hands, and open a long position of 400 hands, the price is set at the position of 2582, breakdown!" Zhong Shi was expressionless, noncommittal to Andrew's words, and placed another trade order.
The four traders have a clear division of labor, among which Zhou Shijie and Zhao Shangming began to gradually close their previous long positions according to the market price, and after they just closed them, the other two Lu Xisheng and Ampet opened long positions in the first time to maintain the price at the current level.
This operation will give the illusion that the bulls are still rising, and in fact, the positions of the rising investors are gradually decreasing, and when they are almost fleeing, it is the end point of the rise in copper futures.
The reason why he does not start at the same time is because it is possible that his closing order is taken over by his new opening order, and the situation of changing the left hand for the right hand is formed, so it becomes a joke.
When Zhongshi gradually reduced his holdings of 1,000 lots, all that remained was a long position with an average price of $2,582 and a total of 300 lots, while the market price hovered around $2,590. The bears did not hesitate to open a large number of short positions at this price, and the bulls here were defeated, and the price of copper futures began to reverse.
However, the bears' offensive did not last long, because at $2580, the bulls entered the market to support, so that the price of copper futures stayed here, seeing that the downward attack was hopeless, the bears began to close their positions, and the price of copper futures rose, and finally closed at $2586. (To be continued......)
PS: The author will continue to work hard to code words, I hope you will support a lot, xiexie!