Chapter 11: I Will Take You Until the School Season Starts in September
Fang Hong seemed to be speaking to Cao Chenghui, but it also felt like he was speaking to himself.
Regardless, when Cao Chenghui saw his boss start to sell, he quickly followed suit and sold everything without hesitation.
During the one-minute period when the stock board was closed, a total of 4.57 million yuan worth of shares were traded.
Immediately after that, Fang Hong entered a new transaction code: 000546. This stock was called Guanghua Holdings, which would later be renamed Jinyuan Stocks in the coming years.
While placing the order, Fang Hong casually mentioned, "Place an order at the price of 6.15 yuan."
Upon hearing his boss's words, Cao Chenghui immediately placed the order at that price.
The orders placed by the two were not completed as quickly as before. Instead, they waited for about a minute before the entire transaction was completed, with a total of 189,000 yuan sold during this time, almost entirely from their orders.
In 2008, the liquidity of small-cap stocks during the bear market in the Chinese stock market was low. Sometimes, even when the main funds weren't moving, retail investors could struggle to trade even 10,000 yuan worth of stocks within a minute.
The total trading volume of the entire market for the day was in the tens of billions, which later shrank to just over 30 billion yuan, almost exhausting liquidity.
The stocks in their hands had successfully changed hands, and Fang Hong's securities account bought and sold 15,000 shares.
By around 2 PM, Guanghua Holdings hit its daily limit. Although it wasn't sealed near the limit price for long, it was successfully sealed during the late trading at about 2 PM.
After the market closed, Fang Hong's account position for the day showed the following data:
Target Held: Guanghua Holdings (000546)
Number of Shares Held: 15,000
Average Transaction Price: 6.15 yuan
Current Market Price: 6.52 yuan
Market Value of Positions: 97,800 yuan
Profit and Loss for the Day: +13,866 yuan (+16.58%)
Floating Profit and Loss: +5,550 yuan (+6.01%)
Total Assets: 97,489.18 yuan
Cumulative Income: +42.00%
With Cao Chenghui providing 60,000 yuan, Fang Hong's securities account was effectively leveraged about 3.5 times. As a result, Fang Hong's speed in making money had accelerated several times.
Today's profit exceeded 10,000 yuan, which is more than a worker's annual income at the current minimum wage standard.
This is the allure of the capital market. Despite the known risks of the stock market, there are still thousands of people rushing into it, driven by the thrill, and getting lost in it. It's almost impossible for them to truly exit.
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In the next five trades, Fang Hong made a spectacular profit of 16% on his daily floating profit by using ultra-short-term trades, changing stocks every day, entering and exiting quickly, and taking full positions.
In just five trading days, Fang Hong doubled his funds, and his account assets exceeded 200,000 yuan.
Similarly, Cao Chenghui, who was following Fang Hong's lead, also reached the 200,000 yuan mark.
Cao Chenghui was in a state of disbelief, earning more than 10% daily—a result he never dared to even dream of. Yet now, it was becoming a reality.
Watching his account balance steadily climb, it was the first time he truly felt the freedom that wealth could bring. It no longer seemed like an unattainable dream.
After working part-time for ten years, this was the moment when he realized how different this path was from his previous life.
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Tuesday, August 5th.
This morning, Fang Hong arrived at the internet cafe again, and Cao Chenghui was already there.
While downloading and installing the market software, Fang Hong suddenly said, "I'll transfer the 60,000 yuan I borrowed from you today."
Once the funds exceeded 100,000 yuan, they would roll over quickly, thanks to the compound interest effect, allowing the funds to grow rapidly.
The fall semester of Xincheng University would start on September 4th. Counting the time from today, there were about 23 trading days left. Fang Hong believed that achieving one or two million yuan before the semester started was absolutely possible.
Once he cleared the 330,000 yuan debt, he could easily keep more than one million in hand.
"Brother, don't worry about it," Cao Chenghui said, refusing outright: "Besides, you've earned 100,000 yuan by following me these past few days. This is more than enough to pay me back. There's no need to worry about it at all. It would be disrespectful to your stock trading skills if you were to repay me like this. With your ability, you could easily make six times the amount in no time. This 60,000 yuan is nothing. Let's not make it complicated, okay?"
Fang Hong wasn't the type of person to be overly polite or indecisive. He responded directly, "Alright, then I'll take you until the start of the school season in September."
Cao Chenghui was overjoyed. This was the definite timeline given by his boss. Though the time was only a month away, at least it was certain. He didn't need to worry about the boss disappearing overnight.
What mattered most was certainty.
Another key factor was the invaluable friendship with his boss.
Just then, the market software was installed, and Fang Hong logged into his securities account. He spoke in a low voice, only audible to Cao Chenghui: "But from now on, you must strictly follow my instructions. With a combined fund of 450,000 to 60,000, we'll be able to cause noticeable fluctuations in the stock prices of some small-cap stocks, especially when our funds reach seven figures. That's when we'll be considered the main players."
It was now 2008, and the GEM (Growth Enterprise Market) had not yet been listed. It would take another two years for the GEM to emerge on the A-share market.
At this time, the total daily trading volume of A-shares hardly exceeded 100 billion yuan. Most of the time, it hovered around 30 to 40 billion, with the occasional spike to 70 or 80 billion. It was a far cry from the super market that existed in 2015, let alone the market from twenty or thirty years later.
In this market, a few hundred thousand yuan could create significant waves in the prices of small-cap stocks, making retail investors think that a large order was being placed.
"Don't worry, brother, I'll follow your instructions," Cao Chenghui assured him. "By the way, I don't have as much capital as you think. Right now, I only have about 120,000 yuan. The main issue is that I'm afraid my wife will find out, so I've been saving up secretly. Haha."
Cao Chenghui chuckled a little, embarrassed.
Upon hearing this, Fang Hong smiled and said, "Family is the most important thing. There's nothing wrong with it. With 120,000 yuan, making a profit within a month isn't a big problem. You could buy a three-bedroom house in the new urban area."
Xincheng was a well-known metropolis in the country, with housing prices ranging between 15,000 and 17,000 yuan per square meter. While these prices couldn't compare to the future, they were still quite high relative to current salary levels.
Cao Chenghui's excitement grew at the thought. If others had said this, they would have been out of their minds, considering it would require a profit of 800,000 to 900,000 yuan to buy a house in the new urban area.
But since it was Fang Hong saying it, Cao Chenghui had no doubts.
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(Ps: Brothers, please click on the monthly pass, vote for the recommended vote, and click on the collection.)
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