Chapter 140: Chasing the Highs and Selling the Lows, Is This the Start of a Rally?
「1:00 PM.」
The stock market opened for the afternoon session.
Yang Qiniang saw that the two stocks he had bought were doing well, trending consistently upward.
This put Yang Qiniang in a great mood.
He originally planned to wait for the price to rise a bit more before selling his shares.
However, a mere two minutes later,
the market suddenly plummeted across the board without any warning.
Yang Qiniang never expected the market to move so fast.
Affected by the market turmoil, the two stocks he had bought began to fall rapidly.
Soon, their prices dropped below his initial purchase price.
"What’s going on?"
Yang Qiniang slammed his hand on the table, his eyes turning red.
The line on the chart was still falling.
Now, Yang Qiniang wanted to sell his shares.
If they kept falling, he didn’t know if he would end up losing the entire fifty million.
’Should I just sell?’
This was the first time Yang Qiniang had ever been in a situation like this.
He was starting to panic.
Vice President Li shook his head. The stock he was in charge of was also falling rapidly.
You could say that, apart from a few rare exceptions,
almost every stock on the market was showing the same trend.
A steep nosedive.
"We absolutely cannot sell. Chasing highs and panic-selling lows is the biggest taboo in the stock market."
Vice President Li gave Yang Qiniang a long, hard look.
He had his own private thoughts on the matter.
Compared to Lin Feng’s seasoned decisiveness in the market, Yang Qiniang was still a bit green.
He probably hadn’t weathered any real storms before.
That was why he was panicking now.
’As a veteran, I should give him a few pointers.’
Yang Qiniang took a deep breath.
The two stocks he was holding had already dropped three percentage points in the blink of an eye.
If this kept up, it wasn’t impossible they would hit the daily limit down.
"What in the world happened?"
"Why is the entire market doing this?"
Yang Qiniang asked, his brow furrowed.
Vice President Li, also frowning at the situation, said, "First, don’t panic..."
After saying that, Vice President Li immediately began contacting some of his industry insiders.
Meanwhile, Yang Qiniang stared anxiously at the screen.
After a frantic four-point drop, the market chart finally stopped its violent fluctuations.
However, it didn’t recover either.
By this point, Vice President Li had probably figured out why the market was in such turmoil.
"The Northbound funds... Tens of billions were inexplicably pulled out, so things started to collapse."
Vice President Li’s brow was tightly furrowed.
There are many large pools of capital in the stock market.
The Northbound funds are a major one.
Furthermore, this capital mainly comes from the market in the far south.
Their access to information is highly sensitive.
As a result, they’re often the first to react to the slightest sign of trouble.
This is precisely why some retail investors follow the lead of the Northbound funds.
Now that the Northbound funds had suddenly pulled out tens of billions, many retail investors followed suit.
That’s what caused the market turmoil.
"So, will it be able to recover?"
Yang Qiniang asked with a sigh.
"Trust me, both of these are popular stocks in booming industries."
"This current volatility is one thing, but their long-term prospects are still good."
As a seasoned veteran, Vice President Li wasn’t fazed by the current fluctuations.
The other two core team members felt much the same way.
"Market volatility is perfectly normal. If you pull your money out now, you’ll just be selling at the bottom."
Just as Yang Qiniang was hesitating,
Lin Feng’s voice sounded from behind him.
Yang Qiniang turned around and saw Lin Feng walking in.
"Brother Feng, we’re already down four points on these."
Yang Qiniang said anxiously.
Lin Feng smiled and patted his shoulder. "Don’t worry. What goes down must come up."
Yang Qiniang let out a long sigh. "Now I finally understand how people get their money tied up in the stock market."
Vice President Li came over with a smile. "That’s just because you’re new to this. I once got stuck holding a stock that hit its limit down for several days in a row."
"But I understand how you feel. Back then, I felt like my world was ending, too."
Seeing that no one else’s expression was so grim, Yang Qiniang finally began to relax.
’Things are already this bad, anyway.’
’Selling is definitely out of the question.’
’Otherwise, I’d just be locking in the loss.’
Once he thought it through, Yang Qiniang was no longer torn. "Whatever. This is just the beginning. I can afford to wait."
After coming to terms with the situation, Yang Qiniang suddenly remembered that Lin Feng should still be holding a stock himself.
"Brother Feng, how’s that stock you’re holding doing?"
Lin Feng walked directly over to their computer.
"My stock hit the daily limit up, have you forgotten?"
Lin Feng looked at Yang Qiniang with an amused, knowing smile.
Yang Qiniang slapped his forehead. "That’s incredibly lucky! Trading is halted for the day after it hits the limit."
"You perfectly dodged this whole volatile period!"
The others in the office also looked on with a touch of envy.
Although there was no telling what would happen when the market opened the next day,
the fact that he’d avoided this turmoil, combined with the market’s current optimism toward immunity-boosting drugs,
meant it was hard to say if the stock would fall tomorrow at all.
Even as they talked, none of them took their eyes off the screens.
Everyone was still staring at the stock charts on the screens.
Then, something unexpected happened.
After that brief period of volatility, the two stocks actually began to rise slightly.
"Is it about to turn positive?"
Yang Qiniang said expectantly.
"That’s the stock market for you. Its appeal lies in this very uncertainty."
Lin Feng found a seat and sat down.
Sure enough, over the next half hour,
the stock market proved Lin Feng’s words true.
Most stocks began to rally,
gradually clawing their way out of the trough.
Just as Vice President Li had said,
these two stocks were in a fairly strong position.
During the afternoon rally, their prices recovered very quickly.
"It’s back! We’re breaking even now!"
Just getting back to his entry price was enough to make Yang Qiniang ecstatic.
After all, just a short while ago, he had been down several million.
How could he not be happy now that the price had recovered?
"You have two options now. The first is to protect your capital. The current volatility isn’t over yet."
"If you sell the shares now, at least you won’t take a loss,"
another investment expert on the side advised.
"The other option is... to keep your money in and wait it out,"
Vice President Li added.
"The choice comes down to whether you want to take a risk or... play it safe and break even."
Yang Qiniang hesitated.
After all, he had just endured that four-point drop.
He instinctively glanced at Lin Feng.
Lin Feng didn’t say a word, simply sitting there and giving Yang Qiniang an encouraging smile.
Yang Qiniang gritted his teeth and declared, "I’m leaving it in."
"I’ve already weathered a four-point drop. I think I can handle any future volatility."
Some people agreed with Yang Qiniang’s decision.
But others felt his decision was too risky.
Lin Feng, however, admired Yang Qiniang’s resolve.
Yang Qiniang himself probably didn’t even realize it,
but he was, imperceptibly, growing...