Chapter 4: Must Get to Know Him Well
At 9:30 AM, the A-share market officially opened, and the market started lower today.
However, Xinhuajin, held by Fang Hong, opened with a 1.83% gain. After a slight retreat at the beginning, the stock price quickly surged, rising by more than 5 percentage points in about three minutes after the market opened.
Fang Hong glanced at the new bids and switched back to the Xinhuajin stock. He didn't say a word, but Cao Chenghui, sitting next to him, was visibly excited. Seeing the rapid increase meant that the stock could soon hit the daily limit.
But then, it dived sharply for more than two percentage points before quickly climbing again.
Cao Chenghui couldn't help but glance at Fang Hong's face, noticing that the latter's expression was as calm as water, showing no sign of stress or excitement. This composed mentality made Cao Chenghui admire him even more. The fluctuations on the board didn't affect him in the slightest.
As time passed, by 9:50 AM, Xinhuajin started to rise, showing a steady upward trend.
Five minutes later, the stock price had risen by more than 8 percentage points and was still climbing.
At this point, Fang Hong placed an order to sell at the limit price in advance.
By 9:57 AM, Xinhuajin reached 6.01 yuan, hitting the daily limit. A total of 1.89 million yuan was traded, and Fang Hong's order was successfully sold.
However, the stock didn't remain at the daily limit for long. Within a minute, it opened up again, and then the price dropped to +7.51%.
"Brother, you placed an order in advance to sell at the highest price, that's impressive!" Cao Chenghui exclaimed, watching the whole process.
"It's not a big deal with this stock. The quantity is too small. We'll just open it up and buy more to compensate," Fang Hong said with a smile.
This remark made Cao Chenghui even more confused, unable to grasp the logic behind it. He couldn't help but ask, "Why sell it if you can hold on to it? Didn't you say yesterday that this stock will rise to 7 yuan? Today, the daily limit was only 6 yuan."
Cao Chenghui couldn't understand why Fang Hong was selling before the stock reached its target price, especially when there was still a potential 15-16% return to be made.
Fang Hong replied calmly, "If I don't sell now, the profit for today would only be this much. Earning 10 percentage points in one day is too slow."
Cao Chenghui was left speechless by this response. He was momentarily stunned.
At this moment, Fang Hong made another move. This time, he turned to a Shenzhen stock, Yuan Science and Technology (0**9). The stock was fluctuating around the zero axis, and Fang Hong decided to intervene at around 10:13 AM, buying 43,300 yuan worth of shares.
He went in with a full position.
Position Target: Yuan Science and Technology (0**9)
Number of Shares Held: 1,800 shares
Average Transaction Price: 5.56 yuan
Current Market Price: 5.56 yuan
Market Value of Position: 10,008 yuan
Profit/Loss of the Day: +1,576 yuan (+10.02%)
Floating Profit/Loss: +1,576 yuan (+10.02%)
Total Assets: 10,422.35 yuan
Cumulative Income: +21.19%
It's important to note that the cumulative income of 21.19% represents the performance of the account since Fang Hong took over the management, starting just yesterday.
At this point, Cao Chenghui also checked the Xinhuajin stock on his computer and saw that it had once again hit the daily limit, just as Fang Hong had predicted.
It was almost certain now that Fang Hong was indeed a short-term stock trading expert—undoubtedly one of the best!
"Brother, what was your logic for buying this stock?" Cao Chenghui asked out of curiosity, eager to learn from Fang Hong.
Fang Hong smiled and replied, "It's similar to the logic behind Xinhuajin."
"So, does that mean this stock will hit the daily limit by the end of the session? And that tomorrow, it might hit the second limit?" Cao Chenghui asked in surprise.
"Yes, there's a good chance it will reach the second limit tomorrow, but it depends on how the stock behaves. We'll take it one step at a time. For today, we've already done enough," Fang Hong replied with a smile.
After that, he closed his trading software and prepared to leave the internet café. Since the A-share market follows a T+1 system, which means trades from today can only be settled the next day, there was no need to monitor the stocks further.
As Fang Hong stood up to leave, Cao Chenghui quickly said, "Hey, can you add me on QQ?"
This was the effect Fang Hong wanted—gradually drawing Cao Chenghui in.
Fang Hong smiled inwardly, but kept his calm demeanor, nodding with a smile, "Sure."
Overjoyed by this response, Cao Chenghui immediately asked, "Brother, what's your last name? By the way, my name is Cao Chenghui."
Fang Hong replied, "If your surname is Fang, then there's only one person you should know—someone quite extraordinary."
After successfully exchanging QQ details and adding each other as contacts, Cao Chenghui was satisfied and looked at Fang Hong with admiration.
"Brother, I've been in the market for ten years, but this is the first time I've met someone like you—an expert in short-term trading. It feels like I've encountered a real master in person. In my eyes, the stock market is just a cash machine for someone like you. Please, give me more advice in the future."
Fang Hong smiled humbly and said, "I'm also a newcomer in the market, having been in for less than half a year. How could I dare advise someone like you, with ten years of experience in the market, having weathered bulls and bears and accumulated such rich knowledge? I can only learn from you."
"Brother, you're too humble. If I had your skills, I'd have my nostrils turned up to the sky!" Cao Chenghui laughed at himself, still astonished. Though Fang Hong looked like a college student, his manner of speaking and demeanor was more impressive than some veteran professionals.
After a bit more small talk, Fang Hong said goodbye and left the café.
At the market's close at 3:00 PM, Yuan Science and Technology closed at its daily limit of 6.12 yuan, achieving the limit just as the session was about to end.
By the time the market closed, Fang Hong's position data was:
Position Target: Yuan Science and Technology (0**9)
Number of Shares Held: 1,800 shares
Average Transaction Price: 5.56 yuan
Current Market Price: 6.12 yuan
Market Value of Position: 11,016 yuan
Profit/Loss of the Day: +2,584 yuan (+18.68%)
Floating Profit/Loss: +2,584 yuan (+18.68%)
Total Assets: 11,438.35 yuan
Cumulative Income: +33.00%
Even though the A-share market limits its price fluctuations to within 10%, Fang Hong had earned more than his fair share by making quick trades within the day.
Not long after the market closed, Cao Chenghui checked Yuan Science and Technology again.
Sure enough, the stock had hit its daily limit, just like Fang Hong had predicted.
What amazed him even more was that Fang Hong had correctly predicted the price movement in advance, earning more than 10 percentage points in a single day.
"Impressive, to think he's only been in the market for less than half a year. He's definitely a natural-born short-term trader," Cao Chenghui remarked. "If I could just learn a fraction of his skill, I'd be in a much better place!"
Cao Chenghui had to admit that some people are simply born with a knack for the stock market. The stock market is like a cash machine for people like Fang Hong.
"He's definitely someone I need to get to know well," Cao Chenghui thought to himself. "This rare opportunity might never come again, and it could be the key to changing my destiny."
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