Chapter 81 - Selling High and Buying Low is an Art

Chapter 81 - Selling High and Buying Low is an Art

The meeting between the two girls had concluded, and Lin Ruoshui was now walking alone through Xincheng District, deep in thought about Hexuan's last proposal.

"No, she must be tricking me!" Lin Ruoshui muttered to herself. Love is always selfish; how could she be willing to share half of what she finally gained?

The more Lin Ruoshui thought about it, the more she felt like it was all a scheme. "Scheming witch, I won't fall for your tricks again," she silently vowed.

She arrived at Xincheng's commercial district and soon entered a high-end cosmetics store. Lin Ruoshui's card had nearly 20,000 yuan remaining. Fang Hong had transferred 570,000 yuan to her earlier, and this 20,000 yuan was the remainder. She had originally planned to return it to Fang Hong.

Lin Ruoshui was very confident in her looks and figure. After all, she was one of the "new big five beauties," a title unanimously given to her by many of the boys at school. But after meeting Hexuan today, she experienced a sense of appearance anxiety for the first time.

She felt inferior to Hexuan.

If she wanted to compete with Hexuan, she first needed to ensure her appearance was not lacking. By dressing up carefully, even if she couldn't surpass Hexuan, she certainly wouldn't fall behind. Lin Ruoshui was confident in this approach. Therefore, she decided not to pay back the 20,000 yuan. After all, Fang Hong had said from the beginning that she didn't need to return the money, so she would keep it as capital to fight Hexuan.

After leaving the cosmetics store, she visited several women's clothing stores and bought some new clothes.

After purchasing clothes, cosmetics, and other items, over 10,000 yuan was spent. Lin Ruoshui felt distressed. This was the first time she had spent such a large amount of money. She used to think her natural beauty was enough, so she only bought a few cosmetics and casually selected clothes. Simple outfits were just as good.

But in order to avoid being compared to Hexuan, she didn't mind spending. There was a stark difference between not dressing up and dressing up carefully.

...

Binhu District

When Hexuan returned home, she immediately leaned into Fang Hong's arms. After a while, she couldn't help but ask, "Aren't you curious about what I talked about when I met Ruoshui?"

Fang Hong responded frankly, "Of course, I'm curious."

Upon hearing this, Hexuan was puzzled. "Then why didn't you ask me?"

Fang Hong remained calm. "If you want to tell me, you don't need to be asked. If you don't want to tell me, there's no point in asking. Even if you tell me, it might not be the truth, so why should I ask?"

Hexuan was momentarily speechless at his response. She rolled her eyes at him and then briefly recounted the conversation with Lin Ruoshui.

When Hexuan mentioned her proposal to share Fang Hong, he looked at her in surprise and couldn't help but ask, "You really said that to her?"

Hexuan nodded, looking up at Fang Hong with a smile. "But she doesn't seem to believe it. She thinks I'm tricking her."

Fang Hong laughed. "If you say something like that, a normal person will immediately think you have bad intentions. Not to mention, you've already left a bad impression on her."

Hexuan smiled. "So, do you think I'm tricking her, or do you believe it's true?"

Fang Hong's smile remained unchanged. Instead of answering her, he asked, "What do you think?"

Hexuan, hearing this, playfully hummed and said, "I know you must be secretly enjoying this. Do you feel like you're getting a great deal with a girlfriend like me?"

Fang Hong replied indifferently, "It seems like you're the matchmaker, and you didn't even ask if I'd agree."

Hexuan gave him a serious look, but sensing the teasing tone in his words, she pouted and said coquettishly, "You're a good boy, aren't you? Well, I don't care, let's see how I punish you. Today, you'll learn what shame and humiliation really are!"

With that, Hexuan became aggressive and quickly took action.

However, Fang Hong was no pushover. He remained motionless on the sofa, quietly observing. "Let's see what tricks you can pull," he said with a quiet calm.

Hexuan stared at him silently. Though she didn't speak, her face was full of determination and dissatisfaction.

After a while, Fang Hong glanced at Hexuan and sighed. "You really enjoy playing around, don't you? Alright, stop now and let me teach you something. Just cooperate well, and I'll teach you everything you need to know. If you haven't made any progress by now, don't come showing off your skills in front of me anymore."

Then, Fang Hong took the time to teach her seriously: "Just like speculating in mid-line stocks, major mid-line themes aren't achieved overnight. There are twists and turns. First, you warm up, then slow down, and finally speed up. The key is to grasp the emotional atmosphere. Once it's in place, that's when you decisively intervene."

Fang Hong continued his guidance: "Although extreme high returns are difficult, they aren't impossible. It requires repeated high-frequency operations. You can buy low and sell high, or sell high and buy low, repeating the cycle to maximize returns. Can you stop trembling and take this seriously? If not, I won't teach you anymore."

When Hexuan heard that Fang Hong would stop teaching, she immediately protested, "No, I wasn't, I was just a little emotional! I was listening carefully and really feeling it. I promise to pay closer attention and absorb all the key points!"

Seeing Hexuan's earnest desire to learn, Fang Hong was quite pleased. He gladly shared everything he knew without holding back. What pleased him even more was that, despite not asking for anything in return, Hexuan knew how to repay kindness. Even a small favor was returned generously, just like the saying, "The grace of a drop of water will be repaid by the spring."

....

The following day, Monday, December 1st.

Hexuan woke up early and prepared a nutritious breakfast for Fang Hong, placing it on the dining table so he could eat whenever he woke up.

Around 8:45 AM, Fang Hong finally got out of bed. After a quick wash, he sat down to enjoy the breakfast that Hexuan had prepared for him. The market would open soon.

Fang Hong then moved to the study, sat at the computer desk, opened the market software, and logged into his Weibo account. The account, K3478, had just been registered, and many people were still skeptical, so he decided to share more real trading operations for the time being.

He was surprised to see that the number of followers on the K3478 account had exceeded 100,000. "I didn't expect that this kid, Cao Chenghui, has quite a lot of fans," Fang Hong mused.

But he didn't linger on the Weibo page for too long. He quickly switched to the market software.

The call auction had already started. Fang Hong scanned the market for potential short-term targets. Recently, he had been doing arbitrage with Zhongxin Securities, and small stocks had been a reliable source of profit.

Today, in order to build up the K3478 Weibo account, Fang Hong allocated a portion of his capital to trade again.

The call auction ended, and the broader market opened slightly lower.

Fang Hong selected a new stock during the call auction, code 600679, Jinshan Development. The stock's market capitalization was only about 760 million, making it a small-cap stock. He decided to intervene in it today.

When the market opened at 9:30 AM, Fang Hong quickly checked Zhongxin Securities, which opened +0.46% higher but soon started diving again.

He sold his position in Zhongxin Securities, and at the same time, he paid attention to Jinshan Development, which opened slightly higher by +0.48% but fluctuated rapidly after the opening.

Fang Hong placed orders shortly after the market opened, with pending orders of 10,000 to 50,000 shares.

The market for Jinshan Development was too small. With only 182 million shares in total and a stock price of just over 4 yuan, its daily trading volume was only about 13 million. This was nothing compared to Zhongxin Securities, where tens of billions were easily traded.

Fang Hong had more than 10 million idle in his account. He could easily push the stock to its daily limit with his funds, but doing so would upset the market insiders and could cause a major conflict.

At 9:47 AM, Jinshan Development's stock price rose to 4.42 yuan, an increase of 5.74%. Then, it retreated slightly, and the gain narrowed to +4.07%.

By 9:50 AM, Fang Hong bought 100,000 yuan worth of shares, and the stock price bounced back to +4.07%. He then bought another 500,000 yuan, causing the price to rise to +6.22%. He bought another 500,000 yuan at 4.35 yuan, pushing the price up to +7.66%.

Fang Hong observed the market carefully. He was guiding the funds to push the stock higher from the start.

One minute later, at 9:54 AM, he bought another 500,000 yuan, igniting a surge in the stock price, which hit its daily limit of 4.60 yuan.

However, less than 20 seconds after hitting the daily limit, short-side funds began to sell.

Fang Hong, sitting in front of the computer, smiled slightly. The current market participants didn't have enough funds. With over 10 million idle funds available and another 20 million in Zhongxin Securities, he was prepared to take action when necessary.

Determined to keep the stock at its daily limit, Fang Hong calmly invested 2 million yuan. This was enough to push the stock back to the daily limit.

By this point, some players were finally drawn into the market, and about 3 million shares were placed on the board. These were priced at the daily limit, totaling nearly 5 million yuan in buying orders.

Short-side funds began selling aggressively, but the buying pressure continued to grow. The selling pressure quickly reduced, and the buying orders increased to 10 million yuan.

By the end of the session, Jinshan Development had firmly sealed its daily limit, and Fang Hong's account was filled with successful trades. His nearly 5 million yuan worth of buy orders ranked first on the board, and all of the successful exchanges went through him first.

The transaction rules of the A-share market prioritize price and time. That is, the highest offer has priority, and when the price is the same, the first to place the order is given priority.

After 10 AM, Fang Hong quickly switched back to Zhongxin Securities. The stock had dropped 2 percentage points at the opening but was starting to rebound. Fang Hong seized the opportunity to buy back at an average price of 19.17 yuan.

By the time the market closed, Jinshan Development had maintained its daily limit and closed at the highest price. Fang Hong's total transaction volume for the day was 4.5 million yuan, with an average purchase price of 4.52 yuan per share.

Zhongxin Securities, on the other hand, had started to recover after its early dip and ended the day higher, with Fang Hong making an arbitrage profit of around 950,000 yuan.

Overall, Fang Hong made a total profit of 1.03 million yuan that day.

...

At around 5:30 PM, Fang Hong logged into his K3478 Weibo account and posted an update, sharing a screenshot of his market operations along with some analysis:

> "The first trading day in December started strong. The market bottomed out and rebounded. The Shanghai Composite Index closed up +1.25%, and the Shenzhen Component Index rose +1.58%. The trading volume of the two cities was 785.1 billion yuan, a slight increase."

> "In my personal operations, I arbitraged Zhongxin Securities and then speculated on the small-cap stock Jinshan Development. It performed well in the market, and I made over 400,000 yuan by riding the first board."

> "The first board can be tough, but it's not impossible. It depends on whether there is a strong momentum behind it. The K-line position is relatively low, and the time-based rise was smooth, powerful, and continuous with large orders. This is when you need to decide whether to enter."

> "Regarding the theme, while the first board might not always be fully confirmed at the time, it's important to monitor the market. If there's strong capital involvement, then it's crucial to decisively follow the trend."

After editing, Fang Hong reviewed the post and updated it.

Soon, the post received 20 to 30 replies from followers. Fang Hong interacted with his fans, replying to some comments:

> "This is definitely a master at spotting bargains! The precision is almost on par with Fengda!"

> "K3478 is a genius!"

> "Over 4 million casually playing around? This is incredible!"

> "With over 30 million in capital, you're practically the king of hot money!"

> "Earning over a million in one day? That's enough for a house in a big city! Envy!"

> "Looking up to this pro!"

> "Is Jinshan Development on the Dragon and Tiger List?"

> "Today, only 16.53 million shares of this stock were traded, and the main buyer was clearly the Patriarch. I feel like the main funds are already invested."

> "Boss, do you think Jinshan Development will hit the second board tomorrow?"

Fang Hong replied to the last comment:

> "Chasing the second board depends on market momentum. If the bulls are not confident, chasing the first board is like giving away money. However, if the market breaks through a key resistance with strong momentum, then going long could be very profitable."

After finishing the replies, Fang Hong closed his Weibo account and logged off.

Retail investors who followed his Weibo account shared his posts in exchange groups for further discussion. The "Patriarch" was gaining a reputation as a powerful player, and no one had seen him lose yet.

Moreover, with his position information fully exposed, it was almost like being featured on the Dragon and Tiger List, giving him more credibility than the data there.

...

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