Chapter 522 How to make money in a stock market crash
"Let me know when you finish writing this book, and then I will go to China to find you in person!"
Even though Professor Wilson is a well-known economist in the United States and even the world, he never overestimates his status with the "God of Wealth". As the saying goes, as long as you have enough value in the United States, even the President of the United States will do the same.
Talking and laughing with you.
"Professor, you don't need to go to China. I came to the United States this time to go to college, so I will probably live in the United States in the next few years. You don't have to go to so much trouble to find me!"
Liu Lang smiled and replied.
"What? Are you going to college? Aren't you already a college student?"
The other party was startled.
"I'm here to study for graduate school!"
"Graduate student? Okay! I have absolutely no problem with your ability. So which university do you want to go to?"
Liu Lang said that he came to the United States to study as a graduate student. Wilson was not very surprised. For a person who can write a book like The Wave of the Third Industry, he should be a professor, let alone a graduate student.
"I have applied for a special postgraduate recruitment spot at Stanford University. I will take the written test and interview in June this year. After passing it, I can become a graduate student at Stanford University!"
Liu Lang spoke calmly, as if the matter was already settled.
"Stanford University? What major did you major in?"
Wilson was a little uneasy when he heard that it was Stanford University. Although this university is not as good as Harvard, it is also one of the top five universities in the United States. Can a seven-year-old Liu Lang really get into it?
“Of course I’m still doing what I’m doing, I learned engineering machinery!”
"Oh, you! It's a waste not to study economics. Well, your talent is fine for learning anything. Then I will celebrate you in advance as a student at Stanford University, and learn knowledge well to benefit all mankind!"
The two of them were sitting here talking, and the others were listening quietly. Everyone felt that their brains were not full.
"A seven-year-old kid actually applied for graduate school at Stanford University? Is this a dream?"
They had been curious about Liu Lang before, always wanting to see what the legendary child looked like. Today they finally saw it, and it was really different. They were sitting there talking with Wilson, the great economist, but when they heard
The other party said that he wanted to go to Stanford to study for graduate school, or that it was a special admission, but most people still didn't believe it.
Whether these people believe it or not has nothing to do with Liu Lang. His main purpose of coming to see Professor Wilson this time is to meet him, and also to settle the royalties for the past three months.
After receiving more than 100,000 US dollars, all the money was placed in Shengtang's account. Liu Lang specifically asked Lin Guodong not to touch the money except for necessary expenses in the past three months. In addition, he also secretly discussed with Louis Wang what to do.
Things to do to make money during a stock market crash.
The stock market crash is a disaster for all investors. It is easy to understand, because all investors hope that the stocks they buy will rise. Of course, those bookmakers will also short a certain stock, sell high and buy low to earn the difference, but this is a certain
Although ordinary stock investors were unlucky due to the "premeditated" decline, the bookmakers behind the scenes made a lot of money.
So whether the stock market is rising or falling, as long as someone can make accurate predictions, they can make a lot of money in the market. Having said that, how many people can make accurate predictions?
Those so-called stock analysts can roughly judge the short-term trend of a certain stock by relying on well-informed information, but it is even more difficult to judge the rise or fall of the market. They may be able to judge whether it will rise or fall today, but how much it rises or how much it falls.
, then no one dares to say anything.
Liu Lang now has the prerequisites. The Dow Jones Index will drop five hundred points in one day. What Louis Wang has to do is how to make more money under this prerequisite. This kind of thing is too simple, let alone Louis.
Economic experts and ordinary investors also know how to do it.
"The market index plummeted 500 points in one day... This is terrible!"
Louis Wang still couldn't believe that this kind of thing could be true.
"Liu Lang, there are many ways to make money when the stock market plummets. For example, you can sell all the stocks the day before, and then wait until the market falls to its lowest point to buy the bottom. If the market index plummets by 500 points in one day, it is equivalent to the Dow Jones
20% of the index, this is probably the bottom. If you buy a lot at this time, you can earn a lot of price difference as the market slowly improves. If you have one million US dollars, according to
I estimate I can make between $20,000 and $30,000 a day!”
Louis Wang proposed the first plan. This is a common short-selling technique. Sell at a high price and buy back at a low price, and then wait for the stock price to rise. You can make money every time it rises a little. Although you may not make much every day, but you can make money every day.
This is very impressive over time, and the stock prices of some stocks can double within a month.
"Too little!"
Liu Lang shook his head and immediately rejected the plan.
"Well, actually the fastest way is futures stock index. U.S. futures are divided into commodity futures and financial futures. The underlying commodities of commodity futures are physical objects, such as crude oil, gold, silver, copper, aluminum, sugar, wheat, rice, etc., financial
The underlying object of futures is a non-physical object, such as a stock price index.
Numbers, interest rates, exchange rates, etc., and stock index futures are futures contracts with the stock price index as the subject matter. The popular understanding is a price guessing game with the stock price index as the object. You can buy up or down, and those who are bullish
Those who are bearish are called bears!"
Lewis proposed the futures stock index plan.
"Then what are the benefits of this plan?"
Liu Lang asked.
"The price multiplier of the Dow Jones Index is US$300 per point, that is, the profit and loss is calculated based on the price of each index point of 300 yuan. For every point the index rises, longs make a profit of 300 yuan, while shorts lose 300 yuan, and every time the index falls one point, shorts
If the profit is 300 yuan, and the long position loses 300 yuan, each account must have a margin of 20% of the current index. For example, the Dow Jones index is 2000 points at that time, then the margin is 2000*300*20%, which is equal to 120,000 US dollars."
Louis replied.
"Only three hundred dollars? That's a little less!"
Calculated based on the price multiplier of US$300 per point, even if it fell by 500 points in one day, it would only be US$150,000. Liu Lang has more than one million US dollars and can open more than a dozen accounts, with each account costing US$150.
Ten thousand US dollars, ten accounts are equivalent to 1.5 million, which is still too little. Liu Lang wanted to make tens of millions from this stock market crash.
Hearing Liu Lang say "little", Louis couldn't help complaining in his heart. Making 150,000 yuan in just one day is not enough. This kid is really "greedy"!
"Of course, there is also something called leveraged futures stock index. This kind of futures stock index is similar to gambling. For example, if you have 500,000 and think that the stock index will drop by 50 points tomorrow, you can submit it on the stock exchange.
It is required that five hundred thousand be announced to the outside world in the form of three times leverage. Any company can
Betting against you means that if the stock index falls by fifty points on that day, the other party participating in the bet will lose $1.5 million to you. Of course, if the stock index does not fall by fifty points, your $500,000
You will lose to the opponent, but the premise is that someone is betting against you. If no one joins this announcement, it will be useless!"