Therefore, Li Mu also joined in, discussing the recent market trends with everyone, lamenting the hot market, and also getting a better understanding of the mentality of ordinary investors, which will facilitate the next operation and cut leeks.
As soon as he opened the account, I heard that he had a large amount of funds, so someone immediately recommended him to invest in over-the-counter funds.
This reminded Li Mu of a piece of news he had seen, which mainly introduced the big market situation in 2015. He can't remember much of the content until now, but he only remembered that experts called this bull market "
"Leveraged Bull", that is to say, this bull market or bubble was inflated by securities investors and capital allocation companies adding leverage.
In addition to the internal leverage of securities firms, it is said that during the peak period, trillions of funds poured into the stock market through over-the-counter capital allocation.
It is this round of leverage that has completely propped up this bull market, making this bull market vividly known as the "leveraged bull."
There are many reasons, one of the main reasons is the current lax supervision. Major securities firms and capital allocation companies are rushing to enter the market to increase leverage for investors, and various margin trading permissions have been opened indiscriminately, until June.
The bull market came to an abrupt end only after the country launched a heavy-handed attack in July.
Then it flew down three thousand feet, and the 1,000-share limit fell nine times. Countless investors were trapped, and countless people had their positions liquidated. It was terrible to watch.
Therefore, you need to be cautious when trading stocks, and use as little leverage as possible unless you can predict the general trend.
…
Hearing that funds could be allocated from the sidelines, Li Mu was quite interested. To understand the general trend of the future, the more funds he could mobilize, the better.
After communicating with the staff of the securities firm and the capital allocation company, Li Mu learned more details.
Many large securities companies in this world will choose several reliable capital allocation companies to cooperate, and Huaxin Securities is no exception. The capital in hand of several cooperative capital allocation companies starts at tens of billions.
Li Mu considered that as Baofeng Video's stock price rises in the future, the value of the stocks he holds will become larger and larger. The positions are too concentrated and will easily attract attention, so it is better to keep a low profile.
In the end, we decided to diversify the risks and spread the funds among multiple securities companies and the financing companies that cooperate with them. This can avoid some additional risks and reduce attention.
In the next two days, Li Muma non-stop visited seven large securities companies, including Huaxin Securities, and the capital allocation companies that cooperated with them, and signed a capital allocation agreement. In accordance with the requirements of the capital allocation company, a special allocation company was opened.
capital supervision account.
Transfer 500,000 yuan into each account, and allocate five times the capital to 2.5 million yuan. Adding the principal, the funds that can be mobilized in each account are 3 million yuan.
There are seven accounts in total, and the total funds that can be mobilized are as high as 21 million.
I heard that some small capital allocation companies even dare to offer you ten times the leverage, 100,000 principal, and allocate 1 million to you, but the risk is too great, and the position will be liquidated if there is a slight fluctuation.
The larger the formal capital allocation company, the less likely it is to engage in such extreme operations. After all, it is not just about grabbing a handful and running away, but needs to consider long-term benefits and impacts.
Li Mu’s five times capital allocation is already pretty good.
…
Time passed quickly, and it was March 24th in a blink of an eye. At nine o'clock in the morning, Li Mu was already ready in the study.
The stock trading software of the seven brokerages also opened and set prices respectively, and only waited for the call auction to start at 9:15.
As time passed by, Li Mu stared closely at the screen, knowing the future trend of Baofeng Video. He must cherish every minute and every second and be the first to enter the market during the opening call auction time of the stock market.
As the time officially reached 9:15, the stock market call auction began. The issue price of Baofeng Video was 14 yuan. Li Mu directly set the price limit of 85 yuan and bought the entire position, one hundred shares per lot, a total of 3821 lots.
After placing orders on the first software, Li Mu then clicked on the next one. Within 40 seconds, he clicked on seven softwares in a row, with 21 million funds, all of which were at the daily limit, for a total of 26,747 trading applications.
After all these operations were completed, Li Mu had time to look at the collective bidding situation of Baofeng Video. Within more than 40 seconds, the total number of closed orders had reached 76,000 lots, and it is still rising rapidly.
Li Mu breathed a sigh of relief and secretly thought it was a fluke. If it had been a minute later, it would have been hard to say whether he would have been able to enter today.
By 9:17, the growth rate of closing orders slowly slowed down, and many sell orders were placed one after another.
As for why there are so many buy orders at the daily limit, Baofeng Video's momentum is strong and there are still so many sell orders. It's not that they can't see those buy orders at the daily limit, but they are afraid of being deceived.
There are three time periods for collective bidding. The first time period is 9:15-9:20: orders can be placed or canceled.
The pending orders during this time period are the most untrustworthy because they cannot be executed immediately and can be canceled at any time.
If you see a stock with many orders at the daily limit at this stage, you originally wanted to sell it, but you think today’s market is good and don’t sell it. Or if you see so many closing orders, you feel ready to move, and you quickly place closing orders to chase the rise.
However, you don't know that these large orders will be canceled in the last few seconds close to 9:20, leaving those of you who are following the trend and hanging on the daily limit board, and it is already too late to cancel the orders.
They took this opportunity to put a sell order backhand and sell the stock at a high price.
Therefore, during this period, no matter how attractive the call auction orders are, we cannot believe too much that most investors who have experienced the experience will still buy and sell according to their own rhythm.
The second time period is 9:20-9:25. The orders at this stage are the most real. Only placing orders are allowed and no cancellation is allowed.
The call auction stage is also officially completed at 9:25, and the trading price at this point is today's opening price of the stock.
The third time period 9:25-9:30: 5 minutes before the opening of the market, only applications will be accepted without any processing. Order applications for these 5 minutes are temporarily stored in the brokerage system, and the time to upload to the exchange is 9:
30.
Li Mu stared at the centralized bidding interface of Baofeng Video. Time quickly entered the second stage. At 9:25, the opening price of the day was officially determined at 85 yuan, which was also the daily limit price of this stock.
During the opening bidding stage, 17,872 lots were finally traded.
According to the trading rules, price takes precedence and time takes precedence. Since both are at the daily limit and the price is the same, whoever places the order earlier will be given priority.
The orders placed by Li Mu were traded in more than 5,000 lots during the collective bidding stage. Obviously, the orders placed by Li Mu were traded in the first two orders placed by him.
As the time came to 9:30, the stock market officially opened for trading, Baofeng Video was still tightly hung on the daily limit board by a large number of orders.
There are not many selling orders here and there, they are all in ten lots, dozens of lots, and the most are only a few hundred lots, and the selling orders exceeding a thousand lots are very few.