Chereads / "Super Stock Trader" / Chapter 8 - Chapter 008 Stop Loss by Zhou Yi

Chapter 8 - Chapter 008 Stop Loss by Zhou Yi

After a moment of trance, time rewound to ten seconds ago.

When he came to his senses, Chen Wei immediately withdrew the fifty long positions he had placed below, and then placed fifty short positions directly at the price of 15.74.

As soon as he placed them, they began to trade.

Next to him, Zhou Yi was staring at the market, and when he noticed Chen Wei's rapid order cancellations and placements, he subconsciously glanced over.

Then he was stunned to find that Chen Wei had withdrawn the long positions below and instead placed short positions above!

And they were already in the market!

Zhou Yi was puzzled by Chen Wei's actions.

At this point, there was still no anomaly in the market, with still dozens of NYSE bids at 15.75, and the electronic program was still executing trades at seventeen to eighteen lots.

Zhou Yi really couldn't understand why Chen Wei withdrew the long positions and went short!

Just as he was about to ridicule Chen Wei, he heard Chen Wei say, "Don't blame me for not warning you. You'd better withdraw your buy orders!"

Zhou Yi laughed directly and said, "I say, Chen Wei, you've just made a little money and you've lost your sense of direction? Shorting this stock, are you seeking death? If you want to go short, do it yourself. I'll stick to going long."

Not just Zhou Yi, any experienced trader wouldn't short this stock. Although the buy orders below were thin, there was no need to worry about exiting long positions because of the electronic program. But short positions were different. Firstly, the downward waves were irregular, making it difficult for short positions to exit. Secondly, no one knew exactly how many lots were at 15.75.

Once those lots were gone and the sell orders above were thin, the electronic program could instantly push the stock price to a much higher level!

That would mean huge losses for short positions!

So, most experienced traders wouldn't dare to go short on this stock. If it weren't for Chen Wei having a skill, he wouldn't dare to go short either.

Just as Zhou Yi finished speaking, the market suddenly dropped.

His two hundred long positions were immediately executed.

"Oh, we're in! Let's make five or six thousand first! Huh? You didn't get out just now? That's a shame. We don't know when the next drop will come. You just wait here slowly! Of course, if you don't want to wait, I'll place an order at 15.74 for you to sell to me. At least you won't lose money."

Zhou Yi said triumphantly.

Chen Wei remained silent, quietly watching him, as if watching a fool.

"What? Reluctant? Then I'll place an order at 15.73 for you, so you can make a penny. How about that? Hahaha!"

Zhou Yi didn't notice that the electronic program had stopped, and continued to taunt.

"Still in the mood to laugh? Look at the market!"

Chen Wei said lightly, ignoring Zhou Yi and focusing on the market, thinking about at what price his fifty short positions would exit.

Upon hearing this, Zhou Yi finally looked at the market.

And then, he froze!

The electronic program had stopped!

Cold sweat immediately broke out on Zhou Yi's forehead!

He had over two hundred long positions!

And the buy orders below were thin!

Zhou Yi hesitated whether to cut his losses.

As he hesitated, the market suddenly dropped again.

Someone was cutting losses!

Hundreds of lots were sold, directly pushing the stock price to $15!

Zhou Yi's two hundred positions were bought at 15.45 and 15.50, instantly losing nine thousand five hundred!

Zhou Yi had made a profit of over eight thousand this month, and it was about to exceed ten thousand. But now, he was losing!

Zhou Yi looked at the screen in disbelief, his face pale, his hand holding the mouse trembling, and his lips trembling.

"Why hesitate to cut losses?"

Chen Wei couldn't help but rebuke.

With over a hundred buy orders at $15, even if they couldn't all be sold, cutting most of them would reduce Zhou Yi's losses considerably if the stock price continued to fall.

After all, Chen Wei wasn't the kind of person to gloat over others' misfortune.

"Shut up!"

Zhou Yi immediately shouted at Chen Wei.

Chen Wei frowned, looked at Zhou Yi coldly, said nothing more, and continued to watch the market.

In Chen Wei's view, the $15 price level was bound to break!

When the first wave of selling occurred, there were seven or eight hundred lots, which meant that seven or eight hundred long positions were sold.

The second wave of selling was probably due to stop-loss orders, with about three hundred lots.

There should still be four or five hundred long positions trapped like Zhou Yi.

Over a hundred lots at $15 couldn't stop the downward pressure.

Although most trapped long positions, like Zhou Yi at this moment, were still hoping that the $15 buy order could hold for a while, maybe the electronic program would come back in a moment.

But Chen Wei was clear that no matter if the electronic program returned, the $15 price level was inevitable.

It was a game of psychology.

With four or five hundred long positions trapped and only a hundred lots at $15, someone would worry that others would eat up the $15 buy order and stop loss before them.

At this moment, there was a loud noise from Zhao Yang's office, as if he had kicked the chair.

Then, with a dark face, Zhao Yang came out of the office.

He went straight to Zhou Yi and saw that Zhou Yi had over two hundred positions. He said angrily, "Didn't I tell you to enter fewer positions? Why did you enter so many!"

Zhou Yi was scolded speechless.

Zhao Yang took a deep breath, calmed down a bit, and said again, "Cut your losses quickly, don't wait."

"Aren't these hundred lots enough to hold on for a while? Maybe the electronic program will come back soon!"

If Zhou Yi stopped here, he would lose more than nine thousand seven hundred.