Chapter 23: Fighting wits and courage

"It's like boiling a frog in warm water," when Fan Geyin and Huang Lei were having a meeting, Yang Xing and his newly recruited subordinates were having dinner together. Two days ago, the hot potato futures contract became a hot commodity. At that time, mung bean futures prices rose all the way, but Yang Xing sold them for 1.5 million. Everyone was half relieved. However, they learned that Yang Xing quietly added two million longs, and bought them at a rate of 15%. He invested all the funds in his hands, and the remaining half of his heart was hung up again. Finally, he took all his actions today, and he made more than 2 million yuan.

Just now, Yang Xing summarized the futures operation skills for his new subordinates today. This is the first sentence. He said while eating: "The bulls' abacus is very good. Eating slowly through small steps and running. Not being noticed is the biggest result of the previous stage. But now we deliberately add a big fire below. The water is too hot. Except for the dead frogs, all living frogs will struggle to jump out. There are no frogs in the water, and the water boils again, and it is still a pot of clear water. Therefore, they must short the next action, and they are still big shorts. They need to slowly lure the frogs back. This is our chance to take action." Yang Xing talked happily, and the new traders below were fascinated.

After several rounds of screening, Yang Xing personally found four traders, including Liu Xianneng and Liu Xianli, a native of Zhongyuan. They turned out to be in the grain wholesale market in Zhongyuan Province and knew all the aspects of grain circulation. Li Guofa, the former trader of Liaoning Jinhao Oil Futures Company, was thick and generous but as careful as a hair. Xu Zhen, a Shanghai native who had been a big player in the Shanghai stock market, suffered a big fall in the stock market and was cruel to come to the riskier futures market.

Lang has the unique shrewdness of Shanghai people. But now, they are like elementary school students, intoxicated by Yang Xing's narrative. With the experience of the next decade as a support, the traders' operating methods must be very immature for the futures market that is still in the infancy. Yang Xing is going to instill in them with advanced ideas first, and let them actually operate in the next month, sharpen them into sharp knives, and prepare for the next feast of wealth sharing.

After communicating with his family, He Guizhi finally agreed that Yang Xing would not go home on New Year's Day, but asked Yang Xing to promise that he would go home during the Spring Festival. Yang Xing and the newly recruited 20 employees took the Greentown Hotel as the base, so that Fang Kai could put down his work and check Laowu. Wang Yiren rented a floor of the hotel and started to operate the mung bean futures transaction together.

Yang Xing installed multiple computers in a small conference room in the hotel building, dialed the Internet with a telephone line to understand the market conditions at any time, and placed blackboards and living facilities in it. He planned to solve the problem of eating, drinking, urinating and sleeping this month, and called it the "war room". However, everyone sneered, especially Heiwa, who knew him better, said in private that he was too lazy and didn't want to go out, but just wanted to sleep at home. All employees were assigned Hanxian BP machines, Fang Le and the seven traders wanted to go directly to the Mercantile Exchange to trade, each with a Motorola 3200 big brother, which was convenient for contact at any time. Yang Xing's confidence ignited everyone's fighting spirit. Even Wang Yiren, who is not very familiar with the futures business, was infected by this enthusiasm. Everyone was eager to wait for the next wave of market.

Just after New Year's Day in 1995, the long-established provincial grain and oil futures company immediately launched a long-term battle. The short side, mainly local funds in the Central Plains, released a huge amount of short orders, while foreign forces led by Dalian Guofa tried desperately to maintain the bullish momentum. The two sides began to fight across the air. The market closed on the afternoon of the 3rd, and the bulls' crazy momentum in the previous few days was curbed.

In the "war room", there was a busy scene, with paper flying around and everyone was making noise. Yang Xing stared at several computer screens with a serious face, carefully reviewing each transaction record sent over, and then sending out various instructions. As his assistant, Wang Yiren was even more busy, and didn't even have to take a sip of water at the end of the day.

When the market closed, everyone thought they could take a breath, but Yang Xing blamed everyone without any mercy: "Today I failed, I reacted slowly, made many mistakes, and I almost couldn't command well. I had been rehearsing for several days. This is the result? I stipulate that everyone will summarize the market every day in the future, and everyone will make a summary of the work they do." Everyone was wailing, but in a helpless manner, they had to force themselves to cheer up and participate in the summary meeting with hungry fatigue.

Wang Yiren is one of the few people who have no complaints, because she feels that there is a long-lost passion in this busyness, which breaks her long-closed body bit by bit. That passion is calling back the confident and beautiful Wang Yiren on the stage. And all this is brought by the big boy who is tired but still insists on listening to everyone's summary and has to comment. She stares at him and feels that she has a brand new life for the first time.

After several days of tug-of-war, the bears lost their patience and threw out a big name. On the morning of the 6th, Xinyang Grain Deposit first published a statement in the Central Plains Daily, severely refuting the rumors that the grain warehouse had caught fire that had circulated not long ago. On the same day, the provincial grain and oil company reported that the purchase price of grain this year was significantly lower than the previous year, especially mung beans, with a price reduction of 17%. As soon as the news came out, the bulls, who were as excited as eating Viagra a while ago, finally embarked on the end of premature ejaculation, and it plummeted thousands of miles.

In the next week, the bears were smiling, and the Provincial Grain and Oil Company almost threw out the market with arrogance. The foreign forces who suffered losses changed their banners and invested under the shorts. Only a few people were still struggling because there were always smart people who noticed that most of the longs were secretly taken over, so their losses were not particularly large. Yang Xing and others followed the shorts when the market opened in the New Year. When the longs and shorts began to reversal on the 6th, they took advantage of the situation to sell all the money, making a fortune. After that, instead of following the bears to pursue the victory, he walked out of the war room and visited large companies, including Dalian Guofa, one by one, which were still struggling with the bulls. The result of the visit was that most companies finally gave up their positions and joined the shorts, which almost allowed the Provincial Grain and Oil Company to take over all the longs.

A week before the delivery, Fan Geyin and Huang Lei, who had been preparing for a long time, finally left the last trump card and officially announced the grain purchase price this year. Unexpectedly, contrary to the rumors in the previous stage, all grain purchase prices exceeded last year, and mung beans ranked first with a 10% increase. At this time, the futures price and the current price were seriously diverged, with bulls winning, and short sellers losing a lot. They lost at least 300 million yuan on mung beans alone. Although those who are interested found that the bulls were basically related to the provincial grain and oil company, the "shady" shouts circling in everyone's heart. But now it is only less than a week before the delivery period, and the purchase price has been reported to the Ministry of Agriculture, which is basically unable to make up for the situation. Everyone can only sigh that they are unlucky.

I don’t know who said that miracles always happen when people are most unexpected. Just when everyone is already desperate and there are three days before the delivery date, two news suddenly came and pulled everyone’s hearts to the bottom of the valley back. One news was that the State Planning Commission rejected the national grain purchase price reported by the Ministry of Agriculture and put forward guiding opinions. In order to stabilize the smooth transformation of national grain production to the system of maintaining volume and price reduction, we must pay attention to ensuring a smooth transition of grain prices. The subtext is that this year’s grain purchase price does not allow large fluctuations, so the grain purchase price of the provincial grain and oil company is invalidated in a blink of an eye, becoming a joke. The bulls were panicked and started to sell.

The second news was one day late. After someone reported that the Provincial Department of Finance investigated the provincial grain system and revealed a crime of major deficit crime. The three major grain warehouses in the province, led by Xinyang Grain Depot, all broke out a deficit amount of varying degrees. It was initially counted that the total deficit of each grain warehouse was more than 10 million kilograms. This news became the last straw that crushed the bulls. As soon as the news came out, the mung bean futures price fell by 12% that day, reaching the maximum allowable limit of the market. The excitement of the bulls almost overturned the roof of the Commercial Exchange. After all, this was the biggest shocking reversal since the establishment of the Commercial Exchange. Many people were still dreaming, almost losing their underwear a moment ago, and they became millionaires in a blink of an eye. This really took some time to adapt.

Fan Geyin and Huang Lei felt that the sky had fallen. They had to use the last move to use the company's grain purchase money to replenish their positions. The next day, the bulls over 100 million yuan forcibly raised the delivery price by 10%, but the bears were unwilling to be slaughtered and were prepared for it. Under the leadership of Dalian Guofa, the fight came to a fierce attack in the afternoon, forming a situation where a provincial grain and oil company had a versatile futures company, and the funds invested by all parties exceeded 5 billion yuan! The provincial grain and oil company finally lacked the momentum and retreated step by step. Seeing that the delivery price fell step by step. For every 1% drop, it would have to pay nearly 10 million yuan. Huang Lei, who was still fighting, lost his eyes. When the market closed with five minutes left, he released nearly 10 million yuan in a crazily manner. According to the transaction ratio, he would pay 10 billion yuan when the delivery was delivered. The whole audience was stunned and finally pulled the price to the long position.

But their celebratory situation was only one night. The next morning, the Mercantile Exchange announced: "All the contract transactions five minutes ago yesterday afternoon will be hedged to zero overnight and all spot delivery will be terminated." The Mercantile Exchange's mid-market ruined the situation and traded zero. The biggest loser was the Provincial Grain and Oil Company. They were forced to close their positions. Although they did not have to pay 1 billion yuan, the loss was at least about 400 million, including the grain purchase funds of the Provincial Grain and Oil Company.

The participants in the futures market are opposing multi-party and short parties. The exchange is a non-profit intermediary because it is responsible for providing the market and supervising the market. According to international practice, only by putting its own interests outside the market can the exchange's supervision be truly fair. However, for many years, although China's futures exchanges have been adjusting their position in the market, they have not been in place. After this incident starts a bad start, one month later, someone will repeat this ridiculous scene.

In 1999, Yang Xing's previous life, the Mercantile Exchange had done this stupid act of leaving a name in the history of world futures. The target at that time was mung bean futures. The direct result was that mung bean futures gradually disappeared after entering the 21st century and naturally died.
Chapter completed!