Chapter 1114 - So That’s How Stocks Are Played
Chapter 1114: So That’s How Stocks Are Played
“For example, if I want to control a stock” Gu Feifei pointed at the computer and said, “I’ll select a Mid Cap one. The stock doesn’t need to have a strong forecast, but it can’t be predicted to go bankrupt in the next few years. Furthermore, I have to consider the company’s background and market value.”
Everyone nodded in agreement. Hm, the selection of stocks was very important in trading. That was self-explanatory.
“Usually, you have to lobby in order to be a successful banker for a stock,” Gu Feifei continued. “Basically, you have to send a senior staff and a supermodel to visit the selected company’s leader.” She looked at the girl who cuddled up to her just now. “Someone like that. You should all understand the effects.”
“Sister Feifei, you’re making fun of me!” The girl said shyly. “If I have to accompany someone, I should accompany you…”
Gross, right?
“Hm, no need for that…” Gu Feifei shifted around uncomfortably and continued, “You must have sufficient leverage if you want to be the banker. Normally that will be pretty troublesome to obtain. However, this stock just so happened to hit the limit down price today. I bought in 200,000 lots, so that’s enough.”
Hong Dali smiled as he listened to her.
As his roommate, having Gu Feifei find something she liked here was considered a success for him. As for whether she won or lost, that was completely irrelevant—he had more than enough money!
“Once the leverage is prepared, we’ll open low on the next day,” Gu Feifei said. “Why do we open low and not high? Because I don’t plan on profiting from the leverage gathered today. Furthermore, I want to utilize all the short-term investors that followed me in yesterday. They will be the ones who tank the stock for me. If we open high tomorrow, these short-term investors will easily profit greatly. This will give them more capital to fight with me for leverage in the falls later on. Hence, we must open low and exhaust these short-term funds.
“After that, we will commence up and down oscillations. It’s too complicated to explain. You’ll understand when I operate tomorrow morning.”
After she said that, Gu Feifei decisively turned off the computer. “Alright, explanation finished. Just wait and enjoy the show tomorrow morning.”
What the heck? You ended at the most important part. Who could still drink after that?
Everyone decisively went to sleep…
At night, Qiao Mingfeng and Qiao Xianxian shared a room. Qiao Mingfeng asked, “Sis, are you really falling for Hong Dali? I’m saying this for real. Hong Dali is a decent guy. He’s powerful enough. However, you don’t know his background. I’m worried that you might get scammed—the most important thing is you don’t even know whether he has a girlfriend…”
“Relax, bro.” Qiao Xianxian closed her eyes. Hong Dali’s smile entered her mind again as she mumbled, “I just find him mysterious, we aren’t at the love stage yet. It’s way too early!”
“Oh, you must be able to restrain yourself!” Qiao Mingfeng smiled.
“Go to hell!” Qiao Xianxian threw a pillow at him.
…
Everyone slept with heavy hearts that night.
The men were all discussing about how to deal with the Black Dragon Gang next. The women were all discussing about how to get into Hong Dali’s bed…
The next morning, around 9 AM, when the stock market was going to open. Everyone pro-actively gathered around the computer in the living room, waiting to see how Gu Feifei was going to become the banker and control the share prices—although they were all second-generation riches, they never had the chance to be bankers who controlled stock prices.
“You’re all so early?” Having had a nice sleep, Gu Feifei walked out of her room in a light step. “Since you’re all so eager, we’ll start soon.”
Soon, the stock market opened. Gu Feifei the big banker prepared!
Gu Feifei opened the stockbroker platform software. When everyone saw the numbers on the screen, they all sucked in a cold breath—total asset: 1,058,422,412…
Total assets over a billion yuan. No wonder they dared to be bankers!
The women looked at Hong Dali in a different light now—as if they were tigers staring at a little white bunny…
Gu Feifei pointed at the trading section on the right and said, “Look at this. The trading volume is very small. Normal trades are only for tens or hundreds of lots. The bigger trades also only involve a few thousand lots. This is the most interesting part.”
Then, she started her moves.
Gu Feifei introduced the moves step by step. “Firstly, in order to control a stock, we have to make it oscillate. We can only control a stock’s prices when there are fluctuations. Look at this. The stock is developing naturally right now, and it fell by 1.31%. It’s a small drop. If we want to buy in at a cheap price, what should we do?”
Hm, after she said that, everyone was curious.
“Firstly, we need to make it fluctuate. The prices must drop.” Gu Feifei first placed a huge hand with over 10,000 lots for sale at 21.10. “We need to lock the price in first. 10,000 lots, or a 1,000,000 shares, that’s 21,110,000 yuan. These small private investors won’t be able to consume this entire amount. Hence, they can only choose to sell their shares at a price slightly lower than ours. Then, those smaller hands will get bought up. And the share price will drop.”
As expected, after she made 10,000 lots available, the share price fell by a little. Soon, Gu Feifei bought in the scattered lots sold by the private investors. By then, the share price had dropped to 21.00. Gu Feifei listed another 8,000 lots for sale. “This time, we can make a few thousand lots available for sale and create the impression that the main shareholders are letting go of their shares. The small private investors will begin to panic now. Hence, we can continue to push the price down.”
“Yes, yes, yes, it was just like that!” The uncle yelled, “I had a bad feeling when I saw something like this and sold all my shares!”
“That’s why you’re an amateur.” Gu Feifei curled her lips.
Obviously, Gu Feifei was analyzing the private investors’ thoughts. After a short while, the share price continued to drop to 20.50.
For each 0.10 that the share price dropped, Gu Feifei would set a new threshold by placing down a few thousand lots. “These thresholds are placed to ensure that the share prices can be controlled by us. Normal small investors do not have the large capital required to buy in all these lots. Hence, at this time, we can cause oscillations in the share price however we desire. For instance, the price has dropped by another 2% now, so let’s raise it a little.”
Gu Feifei removed the huge listings above and bought in the private investors’ shares. As expected, the price rose again. When it reached 20.80, or the threshold set by Gu Feifei, she smiled and said, “Look at this. These private investors are thinking that the price will begin to soar now. More people are buying in. Hence, we have to control the situation a bit. We need to create the fake impression that the stock price is stuck at this threshold and is unable to go up any further. Think about it, if the share price suddenly plummeted after a brief struggle, what will the private investors think?”
“A huge drop is coming, and they have to sell their shares as soon as possible!” Hong Dali instantly understood and laughed.
“Yep, that’s right!” Gu Feifei instantly listed her lots for sale at the threshold of 20.00 yuan. After that, the share price plummeted in a straight line. However, she adjusted the speed slightly and smiled. “You can’t make the drop too fast. You need to give the private investors some time to sell. Otherwise, they might not even have time to react before we raise prices again. Then, they won’t choose to sell anymore.”
By now, this stock’s price was heading for a downward spiral. The private investors panicked and sold all the leverage they held. Gu Feifei bought in everything she could as the price fell to around 19.50. This stock had lost over 7% today, and it was obviously heading for the limit down price.
The poor private investors panicked and attempted to cut their losses early. Soon, as the price reached 19.50, Gu Feifei revealed her fangs. “Alright, we have bought in enough leverage along the way. Up next, it’s time to make the private investors buy back in at a high price, hehe.”
She smiled like a demon, making Hong Dali and Cutie Ke shudder.
This time, Gu Feifei began to remove all the thresholds she previously set. Then, she directly bought in a huge hand at 23.00 for 20,000 lots!
Once that trade was completed, the stock made huge gains. For each 0.10 that the share price increased by, Gu Feifei would set a threshold by placing a hand containing 10,000 lots there. This was to prevent someone else from interfering with the price trend.
Then, Hong Dali witnessed this stock’s graph skyrocket. By then, the private investors went mad again. This stock was headed for the limit up price! Buy in now! Along the way, private investors bought in huge amounts of their shares…
Everyone was stunned—damn, so that’s how stocks are played!!
The uncle yelled, “Yes, yes, yes, just like that. I saw that the stock was making huge gains, so I bought back in right after selling my shares. Just that one move alone cost me over 50,000!!”
Everyone looked at him like an idiot.
No shit! No wonder you lost money! You sold your shares at 20 yuan, and you buy back in at 22? If you don’t lose money, who will?
By now, the share price was completely controlled by Gu Feifei. Why else would she say that Small Caps were the easiest to control? The main point was that these stocks did not have many major shareholders. Hence, it was easy to control the price. Otherwise, if there were many major shareholders, they could counter her moves easily with their leverage.
“Alright,” Gu Feifei said. “We can play however we want now.” She looked at Hong Dali. “Dali, how do you want to play?”
“How to play?” How to play a stock, that was the question.
Instantly, everyone focused their attention on Hong Dali. He was basically a god in their eyes now—he did not have to worry about finding lackeys this time…
“How about this, let’s make an electrocardiogram!” Hong Dali smiled and drew an ECG model on a notepad. “How about this? I find it quite exciting.”
Everyone around felt shivers run through them. Drawing an ECG with a stock graph. They wondered how many stock investors would actually need to go to a hospital to get an ECG after seeing that…