"Today is August 4th, Gaowo Automobile's interim report was released, the market funds on Gaowo Automobile are still relatively large, bullish see more than 80 yuan, bearish see less than 20 yuan......" Lin Shi was thinking about Gaowo Automobile stock when suddenly the mobile phone vibrate.

Lin Shi picked up his mobile phone and saw that it was a message from Tan Yue, and the content was roughly as follows: The customer asked me to ask you if I could buy the stock of Gaowo Automobile.

Lin Shi was slightly stunned, and then replied with a message: "It's better not to, the current attitude towards funds is not clear, maybe it is to pull the stock price and then ship, so let's wait and see, I'd rather make less money than take this risk." ”

"Oh, I see, I'll tell them." Tan Yue replied.

At this time, the door of Xu Mu's office opened, and Xu Mu walked out and said to Lin Shi, "Come to my office." ”

Everyone looked at Lin Shi in unison, as if they were wondering if Lin Shi had done something wrong? Lin Shi walked into Xu Mu's office with doubts: "Manager, what's the matter this time?" ”

"Of course it's a good thing to look for you." Xu Mu said with a smile.

"Good thing? I seem to have recommended airline stocks recently, right? I don't know if the trading department bought it. Lin Shi felt a little confused.

"You have been in our analysis department for nearly half a year, not only for our analysis department, but also for the company to earn a lot of profits." Xu Mu paused for a moment and continued: "To be honest, I was actually not very optimistic about you at the beginning, mainly because you are too young and do not know much about some of the operating rules of the market. ”

"What do you mean by the manager's words?" Lin Shi became more and more confused, what kind of trouble did Xu Mu want?

"Because of your excellent performance, the company has decided to promote you from analyst to trader, and from tomorrow you should be going to work in the trading department." Xu Mu's tone was filled with a hint of sadness, and after thinking about it carefully, it was as if Lin Shi had only come to the analysis department yesterday.

"Promotion? So fast? Lin Shi was a little surprised, it took him nearly a year to go from sales to analyst, but it only took nearly five months to go from analyst to trader? That's too fast, isn't it?

"Well, after you get to the trading department, the company will give you funds to operate freely." Xu Mu adjusted his mood and then said.

"But I've only been in the analysis department for a few months, and I don't understand a lot of hard knowledge about finance, so I'm afraid it's not good to be promoted to a trader all of a sudden, right?" Lin Shidao.

"Although I am just a manager, I know one thing, finance cannot be used as a theory to learn, but to be used in practice, undergraduates learn finance is just to use professional terms to bluff some people who don't know how to do it, real finance can be explained in simple and popular words." Xu Mudao.

"You're not going to say back to basics, are you?"

"That's right, it's back to basics, there is no showcase in finance, only ambush, waiting, harvesting, and enjoying the deliciousness of profits, the simpler the better, on the other hand, those who learn finance to the extreme, are stubborn and think that their knowledge can make a lot of money, and finally leave the market with their tails between their legs, such as long-term capital management companies, you should know, right?" Xu Mu asked.

For Lin Shi, who has read a lot of financial books, the reputation of Long-Term Capital Management can be described as thunderous, and the performance between 1994 and 1997 is brilliant. At the beginning of its establishment, the net asset value was US$1.25 billion, and by the end of 1997, it had risen to US$4.8 billion, a net increase of 2.84 times. The annual return on investment was 28.5 per cent in 1994, 42.8 per cent in 1995, 40.8 per cent in 1996 and 17 per cent in 1997, although the fund went out of liquidation in 2000.

"Of course, I know that I've seen the company grow and ...... In 1998, when the financial crisis struck Asian financial markets, their company's model suggested that the difference in interest rates between developing country bonds and US government bonds was too large, and the result was that the interest rates on developing country bonds would gradually stabilize and the gap between the two would narrow. ”

"In August of the same year, a small probability event occurred, due to the decline in international oil prices, Russia's domestic economy continued to deteriorate, the Russian government announced the depreciation of the ruble, the cessation of treasury bond trading, investors have withdrawn from the developing market, and instead held the United States, Germany and other low-risk, high-quality bond varieties, because the company did the wrong direction, it came to the brink of bankruptcy. On September 23, Merrill Lynch and Morgan invested in a takeover of the company. After Lin Shi finished speaking, he suddenly sighed a little.

The super capital management company of an era has fallen, who is the one who operates for it? Nobel Economist!

"That's right, they pay too much attention to the models they are involved in, and do not take into account the drama of the real world, the fund managers of long-term capital management companies are known as dream teams, and there are huge misunderstandings about the solvency of the Russian government, or the basic judgment of Russian politics, and their understanding and judgment of politics are far inferior to Soros and others, because Russian government bonds, in a large sense, are important for the country's political system, government decision-making ability, government mobilization ability, and the government's ability to regulate and control finance. Several angles to measure and evaluate the results, it turns out that in fact the judgment in this regard is almost idiotic! Xu Mu said disdainfully.

"Errors in judgment are not the deadliest, the deadliest is ......"

"They also used a lot of leverage when they were wrong." Lin Shi took Xu Mu's words.

"That's right, this is one of the things you need to pay attention to as a trader, leverage should be used with caution, or better not, even if you are 100% sure that you can make money, but no one can say what will happen tomorrow." Xu Mu admonished.

"Well, I'll take notice." Lin Shidao.

"Okay, I've said everything I need to say, you can say goodbye to your colleagues outside now." Xu Mu glanced at Lin Shi one last time, and then said.

At this moment, Lin Shi was a little excited and reluctant to the people in the analysis department, from his entry into the analysis department, from the rejection of him by everyone to the acceptance of him, and then to him becoming the core figure of the analysis department, Lin Shi felt that his life was as wonderful as a movie, at the age of twenty, he already had more than 3 million cash in his bank card!

If he wanted to, he could go to the second- and third-tier cities to live a leisurely life now, but like all financial people, Lin Shi wanted to make more money in the market while he was young, not only for himself, but also for Xi Rui and his family!