Big Data Cultivation

Chapter 227: Be Cautious When Skimming Rewards

Early the next morning, Feng Jun woke up, the bloodshot in his eyes proving he hadn’t slept very well that night.

However, his spirit was good, and he went out for a run at six thirty, returning at a quarter past seven. After breakfast, he practiced his Tun Na exercises, and by eight-thirty, he had gone down to the basement to turn on the computer and look at the stock trading system.

Strictly speaking, his self-discipline had become quite strong. If it were someone else, they probably couldn’t help but stay glued to the computer all night, unwilling to leave it.

He drank several rounds of tea, patiently waiting until the market opened at nine-thirty, and then he didn’t hesitate to dive into his mobile phone.

After the opening auction, the stock he had chosen yesterday opened higher by three cents over the closing price at nine yuan and seventy-four cents a share.

Feng Jun just glanced at it before shifting his attention to the shadow part of the K-line chart.

Then, he sadly discovered that his ability to forecast the stock market trends gave him only a half-hour advantage.

To put it another way, he entered the mobile APP at nine thirty-two, and at most, he could only see the stock price and trends up until ten o-two.

Of course, being able to predict the stock trends for half an hour was impressive, but for Feng Jun, he felt…it was a bit insufficient.

He kept going in and out of the app, testing various hypotheses bit by bit, even verifying each time period’s trading volume to see if it was accurate.

At eleven-ten, he confirmed another detail: he could predict the stock’s movement for the next half-hour, but half an hour was the upper limit, not the lower one.

This meant that since the market would pause at eleven-thirty, his observations at eleven-ten could, at most, cover the period only until the pause, not until one-ten.

So, he kept monitoring all the way until eleven-twenty, when he finally gave up entering the mobile APP and only watched the market trend on the computer’s large screen.

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The other three expressed great puzzlement at his sudden intense focus on the stock market, with even Xu Leigang asking aloud whether there was any positive news in the market?

Feng Jun could only say, “You’re thinking too much. I’m just purely observing the stock market to see if I can find any opportunities.”

The three of them could only scoff to themselves: Having seen your rapid rise, isn’t it abnormal not to expect more while being around you?

Around two o’clock that afternoon, Feng Jun suddenly found that the stock he had bought the day before fell another forty cents in the subsequent half-hour, hitting a low of nine yuan and twenty-eight cents.

He didn’t rush to sell but observed for another seven to eight minutes, noticing that capital was quickly pulling up the stock price. Then the price returned to nine yuan eighty cents, even a bit higher than yesterday’s closing price.

Knowing this trend meant that the value of his securities would recover, and it would suffice to simply wait patiently.

However, Feng Jun directly engaged in a T+0 trade, selling all five hundred of his shares at nine yuan seventy cents, while also placing buy orders for four hundred shares each at nine yuan thirty cents and nine yuan and thirty-one cents.

If he didn’t know the future course of the stock, he would never play it like this. He had bought in at nine yuan ninety-one cents the day before; how could he sell at nine yuan seventy? Even with a cut-loss, he would have waited to assess the situation further.

So even the ability to forecast stock trends for only half an hour, if well executed, could bring in money. His sale of five hundred shares showed a loss of just over ten thousand on paper, but after buying back eight hundred shares at nine yuan thirty, with the stock rising to nine yuan eighty cents,

he not only erased the loss but also had a floating profit of over twenty thousand on paper. Averaging each share, he realized a profit of over thirty cents, effectively reducing his cost basis to roughly nine yuan forty-plus cents.

If he hadn’t sold those five hundred shares at a loss, even if he had bought three hundred more shares at nine yuan thirty, his cost basis would have been nine yuan sixty-plus cents, close to nine yuan seventy.

But he made a T+0 trade, risked a loss to clear his position, then bought back in, saving over twenty cents per share on his cost basis.

While trading stocks, he was very cautious, not only splitting his trades into multiple batches but also placing orders on both the mobile and computer ends.

His capital wasn’t significant, so selling five hundred shares and buying only eight hundred didn’t affect the stock’s price trend.

Strictly speaking, it did have an effect, as the trading volume of the stock changed, with over one hundred more shares traded than what Feng Jun saw from the system’s internal transactions. But without his trades, the absolute trade volume would’ve actually decreased.

Feng Jun wasn’t surprised by this. In fact, with just a slight change in trading volume, he felt somewhat relieved—after all, the stock still fell to nine yuan twenty-eight cents according to the original trend, without falling less or more.

In the last twenty minutes, the stock kept wavering steadily, closing five cents higher than yesterday’s price, finally settling at nine yuan seventy-six cents.

For Feng Jun, he was completely satisfied with today’s trades, although another stock he was optimistic about rose three percentage points today, it was a continuous, even rise with occasional pullbacks.

With only half an hour of foresight, it wasn’t easy to strategize on such a rising stock.

But this was just a minor imperfection, an unavoidable regret. Although Feng Jun harbored grand ambitions, in essence, he was a man easily contented. Being able to predict the market trends half an hour in advance, wasn’t that enough?

That very evening, Boss Feng treated everyone to dinner at a small restaurant next to his villa to celebrate earning twenty thousand in the stock market that day.

The twenty thousand was only an unrealized gain and had not been converted into cash. Moreover, for someone with his net worth, twenty thousand really wasn’t much. Currently holding over two hundred million in cash, if he were to put it all in the bank’s daily financial products, he would earn more than twenty thousand a day.

For him however, this income was like finding a steady source of wealth: a cost of over two million yielding twenty thousand, which equated to one percent of the total investment.

Nobody laughed at him for this. On the contrary, even after hearing the news, Zhang Wei came rushing over, eager to understand his trading techniques and stock selection philosophy.

But Feng Jun declined to divulge his methods. He believed his technique was not yet refined enough to be shared with the public.

Moreover, he stated he did not want Director Zhang to comprehend his moves by examining his account activity.

For securities companies, if they deemed it necessary, there were no technical barriers to accessing the trading records of individual accounts under their auspices—legality was the only difference.

Zhang Wei made it clear that he rushed over today mainly because Feng Jun had started trading. As for Boss Feng beginning to make money—please, was twenty thousand even considered money? And that was merely an unrealized gain on paper.

Working in a securities firm for years, one encounters all sorts of bizarre situations. This was hardly anything remarkable.

Therefore, Zhang Wei assured Feng Jun, “If you don’t want people to know, just keep a low profile with your operations.”

He vowed that no one in the firm would access Feng Jun’s trading records without consent—if Zhang himself couldn’t protect his own client’s privacy, what was he even doing in the business!

Curiosity like Zhang Wei’s was easy to satisfy. At least until Feng Jun’s assets doubled, he wouldn’t feel a strong compulsion to dig deeper.

But the curiosity of others was not so easily dealt with.

The next day, Feng Jun couldn’t resist and made another T+0 move. He bought eight hundred lots when the stock fell to nine dollars and sixty-eight cents, which was only eight cents lower than the previous day’s closing price. Discounting commission and stamp duty, the difference per share was less than seven cents.

In the half-hour that followed, the stock price broke through the ten-dollar barrier, reaching ten dollars and three cents.

Feng Jun had originally planned to sell eight hundred lots at this price. In doing so, he would have made three dollars and thirty cents per share in the buy-sell cycle, lowering his building position costs to below nine dollars.

This was quite an extraordinary achievement. He had only used capital for two sets of eight hundred lots, meaning the total did not exceed one million six hundred thousand. He held eight hundred lots of stock at a cost of about one dollar less than the current stock price.

In other words, his unrealized gain on paper could reach eighty thousand.

Stocks worth eight hundred thousand had only required a capital of seven hundred twenty thousand. Even if there was a limit-down the next day, he wouldn’t lose money!

Interestingly, when he planned to sell at ten dollars and three cents, he suddenly noticed that twenty minutes later, the stock surged to ten dollars and nine cents.

Operating on the principle that every extra cent was a cent earned, he decided to wait a little longer for a better selling price.

However, after waiting for another twenty minutes, he found the stock price could rise to ten dollars and nineteen cents.

In the end, he sold the eight hundred lots at an average price of ten dollars and eighteen cents. By selling each share for an extra fifteen cents, his cost of establishing position dropped by fifteen cents, down to eight dollars and eighty-something cents per share.

At the close of the stock market, the stock price had fallen back to ten dollars and six cents. This time, Feng Jun did not make any moves—he didn’t have any stocks left to sell as the eight hundred lots in his inventory were all purchased that day and couldn’t be sold.

Purchasing more at that time would be too high a price and not entirely reasonable.

All in all, he was ecstatic about his T+0 performance. In just three days, he had an unrealized gain of over ninety thousand—despite today’s stock closing price being low!

Indeed, his trading had begun to influence the stock price.

When he bought the early eight hundred lots, the market was still a long way from closing, and he hadn’t known what the closing price for the day would be. But before he sold the eight hundred lots at ten dollars and eighteen cents, he had already seen the closing price: ten dollars and eight cents.

His placement of an eight hundred lot sell order caused the stock, which could have stayed at ten dollars and nineteen cents for about eight minutes, to remain at that price for less than three minutes. The closing price had directly fallen by two cents.

Perhaps, shearing a sheep for all its wool was a bit much?