Chapter 8: Going All-In

According to market news, the domestic internet giant 'Ali Baba' will form a joint venture with the domestic military industry giant 'Weapon Group' to establish a BeiDou (North Star) Operations and Services Company. The 'Weapon Group' is the actual controlling entity of 'Northern Navigation,' the core stock that Su Yue is paying attention to.

While this news hasn't been fully confirmed yet, it has already garnered significant attention from the market's investor community towards the stock of 'Northern Navigation.'

Simultaneously, it's enough to ignite speculative sentiment around the concept of 'Beidou Navigation.'

"Su Yue, what did you just mention about the wind?" On the living room sofa, Fu Xinhai, who was adding sausages to his instant noodles, asked in confusion. "If there's a strong wind, the temperature should drop, right? It's better if it cools down. This weather is so hot that it feels like we're being cooked."

"It's nothing," Su Yue smiled and asked in return, "Xinhai, have you been trading stocks recently?"

Fu Xinhai added three sausages into his instant noodles in one go and replied, "Where's the money to trade? I haven't touched this stuff for several months. By the way, the market hasn't been good lately, right? I saw that the Shanghai Composite Index is about to drop below 2000 points."

"The market often begins its turnaround when things seem hopeless!" Su Yue remarked, "I feel that the market is stabilizing. The macroeconomic situation and market liquidity have been improving this year."

"You didn't invest all the money you won from the Brazil-Germany match the other night into the stock market, did you?" Fu Xinhai caught on to Su Yue's words and responded, advising, "Su Yue, the A-share market can be brutal. So many high net worth individuals have entered with BMWs and left with bicycles. Be careful."

"I know!" Su Yue nodded with a smile, paused, and added, "After this World Cup, don't invest in stocks anymore. Football is even more unpredictable than the stock market."

"Got it!" Fu Xinhai laughed, "I'll listen to you. When the time comes... I'll follow your lead in trading stocks."

"Just don't follow me," Su Yue thought about his own operations. Fu Xinhai might not be able to keep up with them. Even if they traded the same stocks, Su Yue's strategy might result in profits while Fu Xinhai's could lead to losses. "You can buy one of the funds managed by our department. The performance of this fund in the second half of the year should be decent."

"What?" Fu Xinhai suddenly found Su Yue's words amusing, chuckling as he said, "Su Yue, is your company under a lot of performance pressure lately? Why does the responsibility for fund sales fall on you?"

"I'm being serious," Su Yue said earnestly.

Fu Xinhai was taken aback for a moment and replied, "Alright, if your company is starting to pressure you with fund sales, then out of respect for you, I'll buy a bit of the fund your department manages. The World Cup only has the last two matches left. If I can still make some money, I'll invest in your department's fund."

"Great!" Su Yue nodded.

"And for the last two matches... how should I bet?" Fu Xinhai continued, "I've been researching it all day."

Su Yue responded, "You know I don't understand football."

"I know you don't," Fu Xinhai said, "Just give me a reference. For the next match, should I bet on the Netherlands or Brazil? And for the final, do you favor Argentina or Germany?"

Su Yue thought for a moment. He vaguely remembered that Germany won the championship, but he had no other impression. He replied, "Go with Germany as the champion. As for the other matches, figure it out on your own."

"Hehe, we're on the same page," Fu Xinhai sipped his instant noodles while talking to himself, sliding his finger on his phone's screen. He mumbled, "So I'll bet on Germany winning, and for both matches, it'll end 0-0. Since it's the final, the teams will play conservatively. Betting on low scores should be safe..."

Listening to him talking to himself, Su Yue realized he had already given all the necessary advice and there was nothing more to say. He turned around, changed his clothes in his room, and then washed up before going to sleep.

The next day, when he arrived at the company...

In the market news, the information about 'Ali Baba' partnering with the 'Weapon Group' to establish the BeiDou Operations and Services Company had completely stirred the market. Concepts related to 'Beidou Navigation,' such as 'Beidou Xingtong,' 'Northern Navigation,' 'Aerospace Electronics,' 'Aerospace Development,' 'Huaguo Great Wall,' and more, were also gaining significant attention as market investors' interest rapidly escalated. Among them, particularly 'Northern Navigation,' had skyrocketed to the top three of the hot stocks list in the market.

The two stocks ahead of 'Northern Navigation' in terms of popularity were 'LeTV' (LeEco) and 'Fushun Special Steel.'

The reason behind 'LeTV' suddenly gaining such high attention and securing the first place on the hot stocks list was due to regulatory authorities singling out and criticizing the company in the recent release of new regulations regarding 'Internet TV.' The authorities directly notified seven integrated service license holders not to cooperate with 'LeTV' anymore.

As for 'Fushun Special Steel,' its two consecutive days of surging performance had positioned it as a short-term concept leader in the market. Naturally, its popularity and sentiment were high, ranking second on the hot stocks list, which was reasonable.

"Wan Qing, you have no idea how shocked I was when I looked at the market news last night... 'LeTV,' luckily I exited quickly yesterday; otherwise, I would've definitely been hit hard today. Indeed, the market response always leads the news. The next time I encounter stocks with continued weakness and large capital outflows, I can't hold them for the long term anymore. I must cut losses decisively to avoid bigger losses," Deng Yajie complained to Fang Wanqing as she entered the trading room, with just 10 minutes before the official work hours.

"As long as you understand!" Fang Wanqing responded with a smile.

Then, turning her beautiful face to Su Yue, she asked, "Junior, have you noticed the changes in the news regarding 'Northern Navigation'? The news about 'Ali Baba' partnering with the 'Weapon Group' to establish the BeiDou Operations and Services Company. Do you think it's true or false?"

Su Yue smiled and replied, "Does it matter to you whether it's true or false, Senior?"

Fang Wanqing was taken aback and asked, "Isn't it important?"

"It's not important at all," Su Yue said, "As long as the investors in the market believe in the expected direction, even if it's false, it can become true. For the short-term trend of individual stocks, the authenticity of news is not crucial. The changes in expectations and sentiment are what truly matter.

Considering the current market attention and sentiment surrounding 'Northern Navigation,' the suppressed stock price movement in the past, the low expectations that the market had for this stock, once the expectations and speculative sentiment are triggered by the news, the stock price is bound to rise significantly, with a considerable short-term potential.

Due to the significant difference in market attention and expectations before and after the news stimulation, active market participants won't miss the explosive opportunity to fill in those expectations."

"Do you think... it could hit the daily limit?" Fang Wanqing asked again.

Su Yue thought for a moment and replied, "Although 'Northern Navigation' has high market attention at the moment, its float isn't small, with over 10 billion shares. Despite the expectations and attention being influenced by the news, there might still be differences in expectations during the initial stage of the positive news. The stock is likely to open high today without suspense, but achieving a daily limit up might be unlikely."

"Yeah, that's what I think too," Fang Wanqing replied with joy, "As long as it doesn't hit the daily limit, we have a chance to participate."

She had worked hard to uncover the potential of 'Northern Navigation' just yesterday. If she were to miss out on participating while watching the stock hit the daily limit up consecutively, she would feel quite regretful.

While the two were speaking quietly, it reached exactly 9 AM, and all the personnel in the trading room had gathered. Fund manager Wang Liling also entered the trading room, gathering everyone for a brief morning meeting.

"Yesterday, our fund's shares were redeemed by investors for over 30 million yuan," Wang Liling began, "But fortunately, compared to the day before yesterday, the redemption size decreased somewhat. Additionally, seeing our fund's net asset value rise, based on trading records, a small portion of investors has started bottom-fishing our fund. This is good news for us, as it proves that our strategic direction is entirely correct.

Next... we must continue to work hard, steadily increasing our fund's net asset value and gradually reshaping investors' future performance expectations and investment confidence in our fund.

Yesterday, with everyone's effort, our fund's overall position has been lowered to below 20%.

Meanwhile, the loss-making positions have all been cleared.

Now, I hope everyone can truly let go of any burdens, adjust their mindset, go into the market with a light heart, adhere to the four principles we discussed yesterday, and seek out clearer trading opportunities in the market. Be decisive and seize market profits, ultimately turning the trend of our fund's net asset value curve."

"Manager Wang, are we still adopting a free trading approach for today's session?" after Wang Liling finished speaking, Deng Yajie asked, "As long as we focus on the 'military industry' concept for trading, it should be fine no matter which concept stock we buy, right?"

"Yes!" Wang Liling nodded.

"What about the maximum holding limit for individual stocks?" Fang Wanqing thought for a moment and asked.

Wang Liling responded, "According to your respective trading accounts, at this stage, the maximum individual stock holding limit is 50% of the account's position."

"What about the total portfolio?" Fang Wanqing asked again.

Wang Liling answered, "The total portfolio cannot exceed 80%, and under this premise, the maximum total portfolio limit for the fund remains at 50%. This means that if several accounts reach the 80% maximum total portfolio limit, then other accounts will inevitably face greater restrictions."

"Understood!" Fang Wanqing nodded.

She knew that the many restrictions Wang Liling placed on their trading accounts were mainly to prevent overly aggressive trading. It also considered the ongoing trend of large-scale redemptions by investors and the necessity for the fund to maintain cash to handle redemptions, preventing the fund's stock positions from being forcibly sold by the trading system.

After the morning meeting, the traders returned to their stations.

Su Yu refreshed his computer screen, glanced at the time, and logged into his managed fund sub-account on the trading software. He saw that due to the fund's overall net asset value decreasing by over 30 million yuan in a single day due to investor redemptions, his available funds in the account also significantly decreased. The net asset value of his account slipped below the 10 million yuan mark.

However, despite the decrease in his account's net asset value, the fact that the stock 'Rich Shun Special Steel' hit the daily limit up yesterday increased his account's proportion of funds in the whole fund by 0.03 percentage points to reach 8.03%.

"Master limits individual stock holding to 50%," Su Yue looked at the trading permission adjustments he made for his account and furrowed his brows, "It seems I won't be able to focus too much on a single stock later."

Thinking this, he turned his gaze to the market where 'Northern Navigation' had entered the pre-opening call auction phase.

He saw that due to the positive news, the stock price of 'Northern Navigation' was rising during the call auction phase, with its increase going from 2.23% at 9:16 AM to 5.11% at 9:23 AM. As time passed in the call auction, both trading volume and stock price continued to rise.

Seeing this, Su Yue knew that the trading volume, sentiment, and expectations for the stock would likely increase even more after the market opened. Without hesitation, he placed buy orders for all available funds in his account according to the highest 80% holding limit at the limit-up price for 'Northern Navigation.'

By the time he placed his orders, it was 9:25 AM, and the pre-opening call auction had ended.

The opening price for 'Northern Navigation' settled at 13.48 yuan, an increase of 7.43%. During the call auction phase, over 57 million yuan had been traded. Su Yue's buy orders, placed at the limit-up price of 13.48 yuan, were all executed at that price, totaling 3,000 lots, costing around 4.04 million yuan.

After buying into 'Northern Navigation' at the limit-up price, Su Yue's fund sub-account was now at 80% of its holding limit. He held approximately 3.72 million yuan worth of 'Rich Shun Special Steel' and around 4.04 million yuan worth of 'Northern Navigation,' totaling almost 7.77 million yuan in holdings. Among the traders in the trading room, he was the first to hit the holding limit.

As his trading account reached the holding limit threshold, Wang Liling in the fund manager's office quickly noticed his actions on the controlling computer. Her eyebrows furrowed noticeably as she thought, "Fully invested at the opening and even chasing the market's hot stock 'Northern Navigation.' Is this kind of operation really okay?"

Since Su Yue joined the fund trading room, his recent actions in the past two days had indeed surprised her. However, based on the limited trading data, she couldn't determine if her disciple had a habit of trading like this or if he was confident that the stocks he chose would rise, deliberately adopting this trading strategy?

(End of this chapter)