Author: Khurav

"Clear your position first. I feel scared when I see your situation!"

Over the weekend, Carter took the market fluctuation data and his position ratio to find Julian, Rogers and others to discuss countermeasures. To be honest, Carter underestimated the speed of the bubble blowing too much!

Before experiencing these severe stock market crashes, it seems that no one would pay attention to these issues! No, it should be said that sometimes even if there are lessons learned from the past, it may not necessarily arouse the vigilance of future generations!

The most intuitive example is the Japanese real estate and financial bubble that is about to burst in the future!

Although the current mood in Japan is still not completely crazy. But among the people, "Land will never depreciate in value because the total amount of land is fixed!" Such a saying has gradually spread to Carter's ears. And in his memory

In his previous life, Carter also heard, "As long as you have money, buy a house!"

There is no reason in the market!

Carter himself is not a rational player either

"I know you are greedy for the exaggerated returns after the bubble bursts this time, but the risk is too great! Listen to me, kid, you can now short the stocks of the Dow Jones Industrial Index or the S&P 500 and at the same time,

Go long their stock index futures!”

"This is the most stable arbitrage model! For Dow Jones Industrial Index futures, the multiplier for one index point is $15, just judging from the situation in the past few days."

"Based on 2640 in the past few days, one contract requires 2376 US dollars. As of today, the Dow Jones Industrial Index has risen to 2672 points, then the income of one contract is 480 US dollars. And if I spend 2 billion US dollars to do long stock index

As for futures, I can own more than 840,000 contracts of different indices, which is more than 400 million, and this is minus my losses on the short position!"

Carter reported the result with a smile.

He did not deny that Julian's words made sense. In the long run, the long-short strategy is indeed useful! After all, every time you short a target, you find a related target to go long. No matter whether the market of this industry is rising or falling,

Everyone will face a situation of losing money and making profits at the same time!

Even if the judgment is wrong and the losses are more than the profits, the losses are controllable!

But the problem is

"This is how you fund managers play, not how I play as a speculator! Well, gentlemen, I invite you here because I want to analyze the market together! The previous increase was already exaggerated.

This has gotten even worse this month! I feel like I can’t bear it any longer. When the market opens next week, I’ll be ready to sell.”

"My only concern now is that it will really fall as I expected? Although my reason tells me that it will definitely! Even this fierce rise has a feeling of coming back before death.

But, after all, with such a large size, I still feel worried in my heart!"

"You said it yourself, you are sure he will fall! You better not ask us!"

Sipping the coffee in his hand slowly, Rogers, who had made a fortune in Austria just two years ago, joined in this time. He even moved faster than Carter!

As early as the first half of 1987, Rogers began short-selling operations! However, as a purely independent investor, his thoughts were obviously not as big as Carter's! Otherwise, there is no need to say anything else. Just during this period, such exaggeration

The increase and the additional margin required could kill him!

Similarly, it is precisely because the position allocation is less extreme than Carter's and has more room for activity, which directly leads to the emergence of a situation where the same two shorts behave completely differently at this time.

"It's like flipping a coin to make a decision! When you toss the coin, you already have a decision in your mind. It doesn't matter whether the coin lands on heads or tails, does it?"

"Look at what you just said. You have already stated your decision yourself. Now you are asking for our opinion. It is too redundant! Besides, Zhu Li just gave you suggestions and suggested that you readjust your position allocation.

. Use his long-short strategy to reduce risks, but you don’t listen!”

"Actually, this is not a suggestion I just made. As soon as he arrived in New York last month, I told him my thoughts and suggestions!"

With a slight shrug of his shoulders, Julian cooperated with Rogers and stabbed Carter in the heart without any courtesy!

"Okay, okay, if I'm too talkative, why don't I stop asking?!"

Facing the joint attack of these two men, Carter could only smile bitterly.

Looking back and thinking about it, Rogers' words are not unreasonable. His suggestions have been made long ago.

From the moment you decide to go short, you are destined to take extremely high risks! There are ways to avoid risks, but they will reduce returns!

For Carter, after all the hard work, he can only earn a few hundred million in the end.

If that were the case, I would definitely not do it!

It's just such a small amount of money. If you just wait for ROG to sell more computers, the money will come. There's no point in doing this, right?

The greater the return, the greater the risk!

Even the arrival of the King of Heaven will not change this.

"Then today is a small gathering to reminisce about old times. How about relaxing with me before the storm comes? From now on, we won't talk about business."

"Okay, no problem!"

Jim Rogers was the first to smile and express his approval. Julian, on the other hand, seemed a little absent-minded.

"I feel like I probably shouldn't be here. After listening to what you said, I'm now thinking about whether to increase my short position."

Picking the back of his head, Julian said thoughtfully:

"The decline is foreseeable, we have this consensus. But I feel that this time it will be quite a sharp plunge, depending on what you are saying."

"Hey, Julie! It's boring for you to do this. We agreed not to talk about business!"

Carter's face darkened when he heard this. Although he knew that there were so many short sellers in the market today, when there were so many short sellers everywhere around him.

"No! The competition is too fierce. I feel like I should go back to the office now and quickly convene a meeting with my traders to discuss how many stocks we should sell after the market opens on Monday!"

"Are you sure you'll start selling next Monday?"

"Sure!"

Look at Julian, then look at Rogers. Carter is not hiding anything.

In other words, it’s hard to hide this!

Compared with the total par value of more than 80 billion, I sold 1 billion worth of stocks on Monday. To me, it was a small amount. But to the market.

Of course, for U.S. stocks with a total market value approaching 10 trillion US dollars, the daily trading volume is more than 1 billion. But that does not mean that the market will not notice if an additional billion is traded!

If you don't know your position clearly, and others don't know what you want to do, it may just make people feel that something is wrong. But these two people in front of you know these situations clearly!

When the trading volume on Monday shows a certain increase compared to previous days, they will sell it until the third day at most. They will definitely guess that it is their own move!

The only question now is:

"Robert, and Jim, when do you plan to take action? We can't control others, but we must not crash the car!"
Chapter completed!