On Monday morning, the sun was shining, and the entire Manhattan area was still as lively as usual, with pedestrians walking on the road very quickly.

Wall Street elites, either in a straight suit or in a sexy OL style, hurried to the company with a cup of American style, waiting for the market to open on the first day of the week.

Although everyone was in a hurry, they were very stable.

Not only because I am very satisfied with my job, but also full of confidence in the current economy.

Countless retail investors flocked into the stock market with money high, and countless overseas hot money also caught up here. Wall Street has never had such a grand occasion, as if there was endless money to make.

If the development of the Internet alone is not enough to make people on Wall Street lose their minds, what really drives people to start crazy speculation is not only the greed of human nature, but also the two policies of the US government - interest rate cuts and tax cuts.

Banks have reduced the interest on deposits. People think that the income from putting money on the bank is too low, so it is better to withdraw the money from eating, drinking, having fun or investing. At the same time, the interest rate of bank loans has also been reduced, and the cost of borrowing money is low. More people are willing to borrow money from banks to consume or invest, and in short, they are allowed to flow from banks to the market.

The more hot money there is in the market, the more money it flows into the stock market.

Another influencing factor is tax cuts, which is the Taxpayer Relief Act of 1997.

This tax cut is one of the largest tax cuts in the history of the United States, reducing several federal taxes, the most important of which is to reduce the long-term capital gains tax from 28% to 20%.

Capital gains tax is not available in China, but only in some Western countries.

It means taxes that only when you buy and sell capital, capital includes stocks, bonds and real estate. As long as you make money by buying and selling these things, you need to pay taxes.

There are two concepts of long-term and short-term capital. Short-term means that the holding time is less than one year. The income from buying and selling assets is calculated into your annual income, and together with wages and bonuses, etc., how much tax you have to pay.

This tax cut not only increases the disposable income of ordinary people, but also reduces the cost of investment, and to a certain extent also promotes the speculative atmosphere.

With this mentality, investors gradually lose their minds and think that as long as they are Internet companies, they can invest directly, and it will definitely rise anyway. Entrepreneurs are even more crazy when they see this situation. Anyway, as long as they are named an Internet company, they will definitely succeed, and they will be done.

Investors stare at those entrepreneurs, as if saying: Start a business? The kind on Nasdaq?

This drama finally ushered in a climax under the dual motivation of investors and entrepreneurs.

But after orgasm, there is often only a mess left.

Just as Buffett said, when the tide recedes, we know who is swimming naked, and the darkest moment is coming.

The whole Wall Street is leisurely drinking coffee or taking a bite of a sandwich. While enjoying breakfast, watching the market open on time, looking forward to the miracle of the Nasdaq 5048.62 last Friday, which will be staged again.

But everything that happened next completely blinded countless people's eyes.

As soon as the market opened, several mysterious funds began to sell stocks, and the stocks of high-tech leaders that the entire United States is extremely proud of.

Cisco, Microsoft, Dell and other billion-dollar sell orders appeared on the morning of the first trading day, which immediately stunned the entire Wall Street.

Because these sell orders have been entrusted transactions before the market.

So, Wall Street elites began to see the largest percentage of "pre-market" selling throughout the year.

The billions of dollars of selling orders directly caused the NASDAQ index to fall from 5038 to 4879 as soon as the market opened, down by a full 4 percentage points.

The large-scale initial bulk order processing on Monday was like sounding the horn of retreat, triggering a chain reaction of selling - investors, funds and institutions began to liquidate.

Institutions and investment banks who smelled something wrong began to clear up and some optimists believed that this was just a temporary market fluctuation, and they were still full of confidence in the US Internet industry.

As usual, some people sell, some people buy, and most people are still trapped in the inertia of long-term stock market boom in the past few years.

Only a small number of people truly sensed that a huge crisis was coming.

Among them, many financial giants have begun a series of operations, shorting stocks, shorting stock indexes, and shorting the US stock market.

However, no one will notice that on the 55th floor of the General Electric Building in Rockefeller Center, a battle of life and death is being staged.

"Fast, add 2x leverage to short Amazon's stock."

"Hurry up here, just short scape company with 4 times leverage."

“Short Ameri with 2x leverage.”

"3 times leverage, short Me..."

"There are also Pets. and Webvan, both of which are 4 times leverage short, hurry up and hurry up."

...

Lu Ze ordered one by one, and the three traders took their assistants to operate dozens of accounts, constantly entrusting transactions.

These operations were temporarily added to the market situation and the reactions of the company's stocks he was concerned about.

Moreover, according to the situation, the strategy must be adjusted at any time.

Because of the addition of leverage, a slight fluctuation may be forced to close the position and even the principal will be lost.

For example, you currently have only 50,000 yuan of funds to trade stocks. If you add 1:1 leverage, you have 100,000 yuan of funds to operate. If you have 1:5 leverage, you have 250,000 yuan of funds to trade stocks.

For every double leverage, the returns and risks will be doubled at the same time. For every percentage point rise of the stock, you can get a few percentage points of return by adding a few times of leverage.

Similarly, if it falls, the rate of losing money is also amazing.

Because once the decline exceeds the threshold, people will forcibly close the position and sell it and take back the money, which will be completely lost compared to your principal.

So leverage is not so easy to increase, you may not make any profit, but others will never lose.

The reason why Lu Ze is so nervous is always keeping a close eye on the fluctuations of every stock is because the US stock is not like domestic stocks, and there is also a saying of rising and falling.

There is no limit on the rise and fall of a single-day stock market, and at most it only has a three-level circuit breaker mechanism policy.

The circuit breaker mechanism policy refers to the policy measures to suspend or stop trading when the index fluctuations in the stock market reach the circuit breaker specified by the policy in order to control risks.

The circuit breaker mechanism of the US stock market is divided into three levels, with the first level falling by 13%; the second level circuit breaker mechanism is a 7% drop; triggering the first or second level circuit breaker mechanism between 9:30 am and 3:25 pm will cause trading to be suspended for 15 minutes.

The third stage is 20%. Similar to the fuse that fuses blow when excessive current passes to protect the appliance from damage.

Although there is a circuit breaker mechanism, it will not appear today.

You know, the US stock market has been rising for countless days, and the temporary fluctuations will not touch everyone's tense nerves.

Therefore, Lu Ze could only keep staring at the market and paying attention to the stocks specially selected. If there is anything wrong, sell them immediately.

After all, if leverage is added, if a stock is suddenly lifted by a big fund, then his shorting will become a joke.

If there is no leverage, Lu Ze of course doesn't need to panic.

Because he knew that no matter how fluctuated in the middle, the final result would be a big drop.

But without leverage, you can't make a lot of money. Although he raised 200 million US dollars, this amount of money is still less than the principal.

Didn’t you see that the big capitals immediately spent billions of dollars on the market?

Behind these billions of dollars, perhaps tens of billions of dollars may be followed by a backup plan.

That is the big dealer, and Lu Ze is just a small fight. So he has to increase leverage just to seize the opportunity and get more.

US stocks generally cannot leverage. If you pay a certain margin to a brokerage firm, you can generally use 2-4 times the leverage.

Leverage is up to 4 times during the day and up to 2 times overnight.

It's just the beginning, and Lu Ze didn't dare to play too ruthlessly on the first day. After all, the entire Wall Street hasn't reacted yet, and many people still have great confidence in the Internet.

The real highlight is still behind.

After a few days, it will be the time for Lu Ze to fight against the enemy.

By then, Lu Ze will change his game and play US stock futures directly, because the leverage that can be placed is higher and can reach a range of 20-100 times.

That was the time for him to really make money. He was waiting for an opportunity. When that time came, the US stock market might not even fluctuate, and it would fall to the end.

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PS: The two chapters were sent together, and finally I paid back all the debts. Thank you for your support!
Chapter completed!