Chapter 3: [I Said It, but It Didn't Seem Like I Said It]
Cao Chenghui stared at the time-sharing chart of Xin Huajin, noticing something that left him puzzled.
Not only did the stock hit the daily limit, just as Fang Hong had predicted, but the specific intraday trends also mirrored exactly what Fang Hong had said earlier.
Could it be that he had met a stock trading expert?
Cao Chenghui was genuinely shocked. Reflecting on everything, he could no longer dismiss Fang Hong as simply lucky. If it were just a matter of luck, Fang Hong wouldn't have taken such a bold risk, going all in even when the stock was underwater. The fact that the time-sharing trend aligned so precisely with his predictions could hardly be dismissed as luck.
"He said the stock will likely hit the limit again tomorrow. If it really does, then it's almost certain that he's a professional stock speculator, a short-term trading expert," Cao Chenghui muttered to himself, though his mind lingered on the fact that tomorrow was Saturday, and the market would be closed for the weekend.
Stock market predictions, of course, are not made for weekends, but for the next trading day.
---
After the weekend, Monday morning, July 14th, arrived.
Cao Chenghui came to the internet cafe around 8 AM, intending to meet Fang Hong. He had arrived early to check if he could spot him again.
The internet cafe was busy, with limited availability of machines. But since it was a weekday morning, there were fewer people around, so he eventually found an available machine. Cao Chenghui didn't play games this time. His mind was occupied with thoughts of Fang Hong and the stock prediction. He couldn't help but feel more and more convinced that Fang Hong was a skilled trader. If he were indeed an expert, it would be a huge missed opportunity not to connect with him. He regretted not asking for Fang Hong's QQ number or phone number the previous day.
Around 8:40, Fang Hong entered the internet cafe and walked toward the row of machines.
Upon seeing him, Cao Chenghui was thrilled. "Brother, you're here early today!" he greeted eagerly.
Fang Hong immediately recognized him and nodded with a smile. "Well, the internet cafes don't have their own stock market software, so I had to come early to download it."
As Fang Hong spoke, his mind raced, instantly seeing through the younger man's thoughts. He realized that Cao Chenghui was likely fascinated by the stock prediction, possibly thinking that he'd encountered a master. Fang Hong knew that stock traders have a strong desire for knowledge, and that's precisely why stock trading education is so profitable.
"Why worry? Just get rich!" Fang Hong thought to himself, coming up with a plan in just a few seconds.
With limited capital at the moment, Fang Hong understood the importance of time. He had only two months left before school resumed, and the money he could make from his current position wouldn't even be enough to pay off his debts. Furthermore, with the mobile internet era emerging last year thanks to Jobs, it was time to act quickly.
However, Fang Hong didn't have access to leverage at the moment, and his family's financial situation wasn't great. Ordinary people thought of stock trading as gambling, and it wasn't something Fang Hong could expect support for. Plus, margin trading and financing wouldn't become available until 2014 in China, and even then, it wouldn't meet the current market standards.
So, Fang Hong turned his attention to Cao Chenghui. The plan was simple: impress him with his trading skills, earn his admiration, and then propose a partnership. He would guide Cao Chenghui in making a fortune, and they would split the profits. With his experience, even a small investment from Cao Chenghui could be worthwhile, and Fang Hong had no problem with a small return.
Cao Chenghui's motives were crystal clear in Fang Hong's mind. As Fang Hong sat down at the computer, he seemed completely unaffected by the thoughts racing in his head. He started downloading the market software, giving no hint of his inner calculations.
Sitting next to Fang Hong, Cao Chenghui eagerly struck up a conversation. "Brother, Xin Huajin really hit the daily limit yesterday. And the time-sharing trend was almost exactly as you predicted. There's something to it."
Fang Hong, who had been waiting for the software to download, smiled and made light of it. "It's not a big deal, really. There are some factors, but not many."
Cao Chenghui immediately laughed and continued, pretending to be even more curious. "No, no, you're being humble! To be honest, you're really impressive. How did you make that prediction so accurately before the stock rose? Can you share your method? Of course, if it's too much trouble, don't worry about it."
Despite saying it was okay not to share, Cao Chenghui's face showed his eagerness to learn, and he openly sought advice.
Fang Hong could see right through him. With a knowing smile, he explained, "It's a bit inconvenient to share. But as I mentioned yesterday, it all comes down to technical analysis. Mainly volume-price analysis. Any other factors? Well, I suppose it could be something like market sentiment."
Hearing this, Cao Chenghui opened his mouth, hesitating to speak further. Fang Hong's explanation left him more confused than ever, as though he had heard something but nothing at all.
---
By now, the software had finished downloading.
Fang Hong logged into his securities account. The call auction would begin in two minutes, so he first checked his current portfolio.
Position Overview: Xin Huajin (600735)
Shares Held: 1,700
Average Price: 4.91 CNY
Current Price: 5.46 CNY
Position Value: 9,282 CNY
Daily Profit/Loss: +82.98 CNY (+0.87%)
Floating Profit/Loss: +935 CNY (+11.20%)
Looking at the numbers, Fang Hong could see that the stock had reached a near-limit down earlier that day. It was during this time that Fang Hong had bought into the stock at its lowest price. In just a few hours, he had made a profit of over 11%.
Not only had he neutralized the original owner's losses from the previous down limit, but he had also made an additional profit of over 80 CNY that day.
As the call auction began, Fang Hong focused on scanning the market, while Cao Chenghui watched in silence, not wanting to disturb him.
For someone who was truly a stock speculator, it was important to avoid doing anything that would put off the other person.
Cao Chenghui observed Fang Hong's actions intently. The speed with which he scanned the market, his choices, and how quickly he added potential targets to his list all seemed like the work of a seasoned short-term expert.
"Is this how a master operates? It looks pretty impressive…" Cao Chenghui thought silently to himself, feeling increasingly unsure of his own knowledge.
---