Chapter 7: Lujiazui, Your Emperor Has Returned
If he didn’t buy in and just watched, the stocks he originally bought would definitely soar after the reversal.
Not only would they recover their previous losses, but they would surely make some extra profit.
That was the benefit he would get if he didn’t intervene.
But if he bought more shares, he could profit even more when the major reversal happened later.
After all, he had only invested three thousand yuan initially. Even with a high rate of return, what good would that do?
He didn’t have much money before, so he’d bought only a little.
But now he was holding nearly 300,000 yuan, about a hundred times his previous capital. If he played his cards right, his returns could also be a hundredfold or more.
"Buy!"
He directly deposited money into his stock account and started making moves.
The stock had hit its limit down. Countless retail investors were selling, but no one was buying, so he easily bought his target number of shares.
As he bought, Chen Mo’s eyes were filled with determination, while those whose shares he was taking off their hands were already starting to laugh.
Chen Mo didn’t invest all his money at once. From the recent incident with the upstairs leak, he’d noticed a detail.
Before, every time he heard a "DING," a misfortune would immediately occur.
The subsequent reversal would also appear quickly, allowing him to turn his luck around and profit.
But the upstairs leak incident hadn’t seen a reversal yet, which suggested the timeline for the reversal could be drawn out depending on the event.
If he invested all his funds now and the stock’s reversal didn’t come tomorrow, wouldn’t he have bought the dip only to find himself halfway down the mountain?
But if he didn’t buy, what if the major reversal happened before the market opened tomorrow? By then, large institutions and countless retail investors would flood in to buy, and he wouldn’t be able to maximize his profits.
Therefore, he needed to buy in little by little, ready to change his strategy at any moment based on the situation.
’Easy does it. Take it slow.’
Chen Mo was very cautious. He wasn’t perfectly in sync with his golden finger yet and didn’t want to fall back into poverty because of a misjudgment.
...
The next day, Chen Mo had just woken from his sleep. He was still squinting and stretching when he heard two consecutive "DING" sounds in his mind.
’What’s going on? It went off the moment I woke up, and twice in a row? Just how big is this going to get?’
Chen Mo had been half-asleep, lazily rubbing his eyes, but those two sounds jolted him wide awake. He shot up out of bed.
His eyes were wide with surprise and confusion.
’Does this mean two misfortunes are still active?’
But a full five minutes passed and nothing happened, which made him fall into deep thought.
’It probably means that the two unlucky events from yesterday are continuing today.’
Chen Mo pondered for a moment and roughly deduced the logic behind these two alerts.
To verify his idea, he went to the bathroom and found that it was, indeed, still dripping.
He opened his stock app and saw that Guanlan Automobile had, as expected, hit its limit down right at the market open. It was another sea of red at -10%.
The money he had invested yesterday immediately lost 10% of its value.
’If that’s the case, then this is incredibly exploitable.’
Even though he’d lost money, an irrepressible smile spread across Chen Mo’s face, and he felt a surge of excitement.
He knew what this meant.
Originally, he didn’t know if he had actually bought the dip or was just halfway down the mountain.
But if his theory was correct, as long as he heard a "DING" in the morning, it meant the reversal hadn’t arrived yet, and the stock price was still on its way down.
If he didn’t hear a sound in the morning, it meant the reversal had come and the stock price had bottomed out.
This ability, which was basically a cheat code, was an absolutely god-tier tool in the capital market!
"Lujiazui, your emperor has returned."
Chen Mo’s eyes were filled with anticipation, his heart brimming with confidence.
That year, at 22, he stood like a nobody, kicked out of the finance industry like trash on the roadside.
But in the future, he would make people in the industry see him as a god.
...
For the next few days, Chen Mo deliberately adjusted his schedule to ensure he woke up before the market opened.
Every day upon waking, two "DING" alerts would sound in his mind.
Throughout these days, the bathroom was still dripping.
However, considering the foreigner was also renting, fixing the leak would require contacting the landlord, who would then have to find a repairman. It wasn’t something that could be done in a day or two, so he didn’t go upstairs to talk to the man again.
The stock was still a sea of red. Although it was still falling, the decline had slowed considerably, usually dropping about one or two percent a day.
The events of the past few days confirmed Chen Mo’s theory. He was becoming more in tune with his golden finger, which gave him more confidence and conviction for this play.
To prevent the reversal from suddenly occurring before the open or after the close, he bought a little more each day just to be safe.
It would dip, but only by a small, harmless amount. It wasn’t a big deal.
As long as he played his cards right later and seized the perfect moment, he could earn it all back, and then some.
A week later, Chen Mo woke up one morning, and the alert sounded in his mind as usual.
But unlike the previous few days, today it only rang once!
"It’s here!"
Chen Mo’s eyes filled with anticipation. He knew the reversal for Guanlan Automobile had finally arrived.
He was so certain because fixing the leak would require smashing the bathroom tiles, digging up the subfloor, and re-waterproofing everything.
That would inevitably create construction noise, but Chen Mo hadn’t heard a thing during this time.
This meant the bathroom was still dripping, so that string of bad luck was still ongoing.
Since there was only one "DING" this morning, it naturally meant the period of bad luck for Guanlan Automobile was over.
In other words, Guanlan Automobile’s stock price had bottomed out. He could buy the dip.
There was still a while before the market opened, so he washed up first and made some breakfast.
Then, he opened the page for Guanlan Automobile’s stock. Many people were posting in the comments section, but the mood was very pessimistic. They wanted a chance to get out, but there were no buyers.
A whole week had passed, and no one had seen any good news about Guanlan Automobile. A recovery seemed a long way off.
"This is why retail investors can never beat the institutions."
Chen Mo shook his head and sighed.
It’s far, far more difficult for retail investors to get inside information than it is for institutions.
Some institutions have scouts everywhere and learn a lot of inside information in advance. They’re always one step ahead of retail investors. How are you supposed to compete with that?
’You’re on the first level, while they’re on the fifth.’
’But I’m in the stratosphere.’
The corners of Chen Mo’s mouth lifted into a faint smile.
Soon, it was 9:30 AM, and the stock market opened.
Guanlan Automobile opened in the red, but after a week of decline, the downward momentum was now very weak.
Chen Mo didn’t delay any longer and immediately started buying up shares.
At this point, as long as you had the money, you could buy as many shares as you wanted.
The price of Guanlan Automobile was currently 20 yuan per share. Chen Mo kept just a little emergency cash for living expenses and threw in the rest.
Counting the single lot he’d bought before, plus the shares he had been buying over the past few days, and today’s all-in purchase...
...he rounded it out to a total of 130 lots of Guanlan Automobile stock.
He had taken some minor losses over the past few days, so after factoring everything in, his average cost basis was about 21 yuan per share.
"Everything is ready. Now, I just need the east wind."
Chen Mo had everything prepared. He was just waiting for the major reversal to happen.
Once it turned around, this move was guaranteed to make him a huge profit.