Chapter 892 Market sentiment
“…Afterwards, the price fluctuates around fifty cents. At this time, our buying volume also fluctuates violently. When it is higher than fifty cents, we no longer buy more, and then we copy it in a large amount after it drops.
Although the rise and fall here are consistent with our trading actions, they are actually very low-impacted by us. It is estimated that the people who are buying at home are also worried that the bill will not be passed and dare not buy positions at too high costs.
Why can I definitely be a drumbeat? Because before this, the speed of buying positions was not very high, and the position could only be maintained at about 40% before the bill was passed, which is a relatively cautious position for novices.
Although after calculation, the average chips bought at this stage have not been reduced much, why does it have little impact on them? Because many people in the market have the same ideas as ours.
At the lowest price of government bank purchases, many ordinary investors in the market are worried that the bill will not be passed and the position may be closed and sold when it is better. The buyer may not dare to buy it. Especially when the price fluctuates, the willingness to invest will be shaken. This is called market sentiment.
At the level of ordinary investors, the selling price increases sharply and the buying price drops sharply at this price, and then the chips that are trading in the market or waiting for trading have increased sharply, no longer the previous insufficient circulation. We still maintain this buying volume, and the impact on the market has decreased sharply.
The price fluctuations should be because there are large funds buying positions in large quantities according to the method I mentioned before. When the price rises, they do not buy or sell goods to lower the price. After the price falls, they accumulate a large number of sellers and then take the opportunity to eat in large quantities. The price is pulled up and repeated again. We just made a mistake in the investment strategy and took advantage of the other party.
However, this time was not long, and those people did not eat much chips. As a result, as soon as the bill was passed, we bought a lot and directly raised it to 60 cents in a violent wave. This was the stage that was most directly affected by our funds.
Why do we say that? Because in just a few trading days, our positions increased directly from more than 40% before signing the bill, up by nearly 20%, which shows that there are still huge amounts of selling at this stage, but it only makes us eat a lot and violently raise the price.
Even in this, we may have eaten a lot of chips that had been selling out and putting out the price down. So in order to gain enough chips, the face of the side fluctuated for a lot of time, which made the price fluctuate violently, and forced out more chips. However, we picked up a lot of cheapness and ate nearly 10% of the positions.
But this strategy also proves that the people who analyzed us were also cheering up in my heart. Before the positive news came, they were afraid and cautious. Once the positive news was confirmed, they would rush and beat again, becoming radical and bold.
Although all the goals have been achieved, it is based on the fact that we have huge capital volume, we have bought and held a large number of positions early, and we have already made huge profits, that is, we are full of confidence. Otherwise, such emotional operations will probably make people feel like they are dying of ecstasy.
Of course, their minds are relatively clear and clear. Whether it is a safe buying in the early stage or a decisive selling in the later stage, they are dealt with very correctly. However, when there are major situations that cause severe market fluctuations, they will be affected by market sentiment..."
After the analysis, Lin Mo pointed to the chart and explained some problems and situations to Lin Zhenping. Although he was just a strong-mouthed person, he was at least somewhat basic. Lin Mo even broke it and made a break and analyzed it. Lin Zhenping could finally understand the tricks.
"Uncle Ping, can you answer your previous question now. Do you still think that the silver price can break through one dollar? What I mean is to stabilize after breaking through, rather than breaking through and then falling back soon."
"…It's a little hungry..." Lin Zhenping nodded, and then said, "But market sentiment is also available, there should be a chance, right?"
Lin Mo heard this and his teeth were a little sore, but he still explained patiently: "You can't say it too much, but the chance is not great. I'll tell you carefully and analyze it! You will understand after listening."
Lin Mo knew that these ideas might not be held by Lin Zhenping. Although he was struggling with this for some reason, he still wanted to convince people completely about such obvious wrong things.
"Uncle Ping, in financial market trading, many investors are accustomed to selling on integers, especially integers like 5 or 10, so the selling orders here will be more concentrated, and the buying orders are worried that the price will not rise, so they will hesitate and shake here, which will form a greater upward resistance.
Some people are not just choosing the price of fifty cents and sixty cents. You can also see the rising resistance caused by it. For a dollar, this will not only rise to tens or break through higher orders of magnitude. There will definitely be a huge number of selling orders.
One dollar goes up, and it is not much far from the government's highest price of silver purchases that is less than 1.3 dollars, which means that the market's expectations for price increases will be greatly reduced, the willingness to purchase will decrease, and the buyer will decrease.
Investors who bought early have already made sufficient profits and have a strong desire to leave the market. They form a huge number of sellers, one step further and one step lower, which will only cause a huge difference in buying and selling orders unless there is a large amount of funds to raise the market.
But the silver price has exceeded one dollar, and the expected returns are reduced and the risks are increasing. How can there be large funds willing to enter the market to take over? They will even clear their positions and withdraw earlier than ordinary investors, just like us.
Moreover, big funds are happy to see the price of silver fall, because our existence has raised the price of silver early, making it impossible for them to buy enough chips at low prices. In the middle, they accidentally destroyed the other party's buying positions several times. The chips and positions in the other party's hands will never satisfy them.
For most large funds, if you have such a good investment opportunity, you will get much advantage before you even enter the market, and you will be pushed up or even close the market quickly. You will definitely not be satisfied. You can use other means to gain benefits through the decline process, or let the price fall back, and obtain chips and move on the market again from then on. These are what they want to see.
Even the government wants to see the price of silver fall, because only when the price of silver falls back to the low level, they will take the opportunity to buy a large batch of silver so that they can comfort them as much as possible. Those who are forced to buy silver at low prices can also raise the price of silver again to satisfy those behind the big funds.
Uncle Ping, look, there are so many powerful factors that dominate the decline in silver prices. Do you still think it can reach a dollar? At least this time there is not much possibility.
What are the factors that are rising? Is market sentiment? Market sentiment is useful, but it can also be used, just like fifty cents or sixty cents. This may be just used by others, and even what you see may be just what others want you to see.
If you want to have an accurate judgment on the market and be entangled in a single influencing factor, it is extremely narrow and unwise. You must combine various situations, consider the demands of all parties, etc. to get relatively accurate results..."
After hearing this, Lin Zhenping was stunned for a while. He found that he was outrageously wrong and even ridiculous, just as Lin Mo said, full of narrow-mindedness and unwiseness, just like a red-eyed gambler.
"By the way, Uncle Ping, I remember you seemed to have mentioned it before. The one I had sold out before. Do you mean you bought something again now?"
"…Yes…" Lin Zhenping nodded and smiled bitterly: "The person in charge of operations in the United States believes that the silver price will only rise by one dollar. After breaking through to 85 cents, he said that he wanted to short the silver price, which was to buy silver price to fall.
We generally believe that the silver price should keep rising and maintaining a high level, but we didn't say anything. After breaking ninety cents a few days ago, the United States bought some and asked about the family again. We were struggling before! This is one of the reasons why we wanted to find you."
After hearing this, Lin Mo thought about it and replied: "You can buy it, but at most you can only use one-third of the original one-month operation. And if you use leverage, it can only be within ten times, and it is best to control it at about five times.
Now the silver market has focused too much attention, and we can no longer use such a large amount of funds to operate, so as not to be caught by others, and even use this to calculate and target us. Therefore, we have to change the trading account and personnel.
There is not enough time, and it will not take long before the silver price reaches its peak. Moreover, short selling is to lend the stock from others and sell it. When the stock falls, buy it back and pay it back. The difference is usually a bet with the lending institution.
The institution is not stupid. Most of them must have predicted that the silver price may fall, so why would they bet with you easily? So the amount of funds is almost the limit of this operation.
By the way, has the funds returned after taking action? How much will it be returned? What channels will be taken? How long will it take to fully operate? How will the funds be handled in the middle?"
Hearing Lin Mo's many questions, Lin Zhenping organized the language and said: "It is to follow your suggestions, first disperse the funds, then withdraw cash, deposit and withdraw it several times, and then transport it secretly to other countries in the United States in batches. After going there, further processing will be done. The channels and lines have been prepared, and the money has been made out of the United States in an orderly manner.
The news sent back at present is that at least the amount of principal has been shipped out of the United States. In the early stage, it was mainly to explore the way and manage the route. The speed will be very fast and it will not take much time to get the money out. However, do you not need to get it all out? There are still many risks along the way. Anyway, we are also planning to invest in the United States."
"...No, no, no..." Lin Mo quickly waved his hand and said, "We all entered the United States secretly and invested secretly in the trading market to speculate. Strictly speaking, it is black money.
That is, there is no legal source, no record of entry, tax payment, etc. Among them, the tax department in the United States is very strong. If this happens, there will definitely be problems. So we have to get the money out, turn it into legality, and then use it for investment. Wouldn't it be invested with the money there, right?"
Chapter completed!