Chapter 28 London Gold Market
In the new week, Chinese Online ushered in two daily limits, and the stock price was 41.65 yuan, setting a new historical high.
It has topped the Dragon and Tiger list for three times, becoming the most popular stock in the market this year after Baofeng Technology.
“The voice will not disappear even if the prediction is wrong, but the results will be biased due to human factors.”
In the past two days, Lu Liang chose to wait and see with a short position, although he missed two daily limits , but this conjecture is confirmed from the side.
The information provided by the voice is not 100% accurate, because his existence is the biggest uncertainty.
Because Lu Liang made a profit of 12 million, he was almost blown up twice, violently liquidating his positions and cashing out at high prices.
The main force can only be forced to raise the stock price higher, otherwise their funds will be easily trapped in it.
“The sound will sound in the early morning.”
“The triggering condition may be related to the matter of contact?”
Lu Liang wrote down his experience in the notebook, then tore off the page and threw it into the ashtray.
He lit a cigarette, took a deep breath and exhaled the smoke, watching the flame dance in the ashtray.
Until the paper ball burns out.
At night, Lu Liang was alone in his study, browsing financial news and waiting quietly for the early morning bell to ring.
Today the Shanghai Composite Index achieved four consecutive positives and officially exceeded 5100 points. The entire market was going crazy.
Former colleagues in their circle of friends are also sending photos of long queues at the Housing Authority.
This grand scene lasted for several weeks, with people selling their houses or mortgaged their properties to speculate in the stock market.
“Is this kind of grand occasion something that China can have?”
These days, Lu Liang has had enough time to study the market.
He is also a senior real estate person and is well aware of the importance of real estate to the domestic economy.
It can be said that the three major financial boards combined are not as big as a hair in the real estate market.
For a house with a market price of one million, the potential tax revenue is as high as more than 500,000 yuan. After deducting labor costs, the remaining amount is a real estate development group.
Real estate is related to too many industries, such as building materials, home furnishings, home appliances and hundreds of other industries, and it also creates a large number of jobs.
Nowadays, everyone is selling their houses to speculate in stocks, or using the money from buying houses to speculate in stocks. Is this really what the country wants to see?
I’m afraid not so.
"The bull market should be over."
Lu Liang put out his cigarette and took a sip of coffee.
The clock rang at twelve o'clock in the morning, as if a voice from another world echoed in my mind.
[June 5, London Gold, 1517.2500 points]
Lu Liang was stunned. He thought about many possibilities, but he did not expect it to be international spot gold.
Because it originated in London, it is called London gold. It has a history of more than 300 years and is the world's largest spot gold trading market.
The daily trading volume is about 20 trillion U.S. dollars, which is equivalent to the size of 25 big A's. Therefore, no consortium or institution can artificially control it, and it completely relies on the market's spontaneous regulation.
“The current price is 1347.1200 points, which is almost an increase of nearly 160 points.” Lu Liang squinted his eyes with excitement.
Since ancient times, gold has been the most stable primitive currency. Unless there is a confrontation between powerful countries in the world, or there is a financial crisis, and big funds seek safe havens, the price of gold will only rise steadily with inflation.
Because the rise and fall are very small, the minimum leverage of 100 times will only have four digits after the decimal point.
Although the increase of 160 points is not impressive, if done properly, it is not impossible to turn one hundred thousand into one billion.
This also confirms Lu Liang's guess from the side that the domestic bull market is coming to an end, and large funds are flowing into the gold market for capital hedging.
The night is getting darker, and the lights are still on in the study.
Lu Liang never leaves his hand to smoke or drink coffee, and he understands the trading rules and methods of London gold.
The trading methods of London gold and A-shares are different. To be precise, A-shares are different from the financial markets of other countries in the world. Only A-shares in the world adopt T+1 trading. If you buy today, you can only sell tomorrow. You can only go long, not short.
Except A-shares, all stock markets, funds, foreign exchange and other financial markets adopt the T+0 trading method. Buy today and sell today. You can go long or short.
This trading method is good for institutions, but not good for retail investors. Although it was initially set up to protect retail investors, in the end it was constantly exploited by institutions.
London gold is different from the domestic stock market. In addition to the t+0 trading method, there are also trading hours.
Trading is non-stop 24 hours a day, from Monday night to Saturday morning, and the market is closed only on weekends.
Starting at 3 p.m. Yanjing time, it is divided into European, American, and Asian markets, basically following the sunshine time of each continent.
The active daily trading period is from 10 pm to 5 am, Yanjing time. Seven hours contributes almost half of the day's trading volume.
This period is the afternoon of the European market and the morning of the American market. The combined activity of the two far exceeds that of the Asian market.
At three thirty in the morning, Lu Liang basically understood it clearly. Although he still didn't understand it a little, he planned to learn through practice.
Log in to the brokerage account to exchange for US$10,000, use 400 times leverage, and decisively enter the London gold market.
The leverage ratio of London gold is high. On the one hand, the fluctuations in rise and fall are small, and on the other hand, the transaction threshold is very high.
Each transaction requires a minimum of one lot, one lot is equal to 100 ounces, and 1 ounce is equal to 31.1035 grams of gold.
The current international gold price is 272 yuan per gram, 100 ounces is equal to 3110.35 grams, and one hand requires 846,000 soft sister coins, which is 133,200 US dollars.
Lu Liang exchanged ten thousand US dollars, five thousand of which was used as a deposit, and the other five thousand were the funds he could use.
After raising US$2 million, we can only buy 15 lots.
Lu Liang did not do anything like he did in the A-share market. Instead, he first bought 5 lots and went long and waited to see the market situation.
Every time it fell by three basis points, he would cover one lot, because once it exceeded five basis points, he would liquidate his position.
If the margin is not enough, continue to add money to cover the position.
At five o'clock in the morning, although this wave of market has not started, there are already signs, and the price of gold is rising slowly.
Lu Liang’s total investment reached US$80,000, of which US$40,000 was margin, and his position assets reached US$16.17 million.
14 million is financing capital, and only 170,000 US dollars really belongs to him. After deducting the principal, there is still 130,000 US dollars in profit.
"The exchange rate is 6.35, so you have earned more than 800,000?"
Lu Liang couldn't help but marveled that this money came so fast.
He basically doesn’t have any operations. He just covers his position when it falls, and waits and watches when it rises.
However, one time, the intraday drop fluctuated hugely, falling 4 basis points in an instant, and he almost liquidated his position.
Fortunately, the logistics supply was sufficient, so Lu Liang hurriedly added an additional 20,000 yuan in deposit to avoid being forcibly liquidated.
High leverage, playing with your heartbeat,
Concentrate on it, and you can’t be careless for a moment.
At the beginning of June, summer is gradually entering. At around five o'clock, the sky gradually turns white.
The trading hours for the American session are coming to an end, and market activity has dropped significantly.
Lu Liang rubbed his eyes and braced himself because the Asian game was about to take over.
If his guess is correct, the Asian market during the day will be as active as the European and American markets.
Lu Liang exchanged U.S. dollars in advance, converting 5.84 million soft sister coins into 920,000 U.S. dollars, all of which were transferred to the London Gold account.
There are still more than 4 million available funds in his account, but there is no quota for exchange for US dollars.
After making all preparations, Lu Liang walked out of the study, planning to take a bath and have breakfast to recharge his batteries.
Now that his account has a margin of more than 900,000, he does not have to worry about intraday fluctuations that may lead to a liquidation of his position.
(End of this chapter)