Reaching the age of thirty, my income randomly doubled - Chapter 897: 675: Late August

Chapter 897: Chapter 675: Late August

“Oh yeah.”

Er Piya was so excited that she was dancing around. In just one day, a stock she held skyrocketed by 40%.

Counting everything else, she pocketed more than a hundred million in just one day. It felt truly exhilarating.

Making a dollar from a dollar is hard.

Making a billion from a billion, though, is actually quite simple.

Of course, losing that billion entirely is even simpler.

It’s just like betting on the big or small in gambling; with only one dollar, you can’t even get a seat at the table.

When you have a few billion at play, it all depends on the cards the dealer holds.

Er Piya naturally didn’t yet qualify to be the dealer, but her sister did—though she wasn’t able to control everything just yet.

When the stock market was booming, the two sisters would dance around in joy; but when it wasn’t, they’d get carried away like any ordinary person.

This was just part of the process.

If you want to make money in the stock market, the most important thing is knowing how to restrain yourself—specifically, to control your impulsive desires.

Whenever you run into a slump, especially during those prolonged downturns.

After some time, the market tends to rebound a bit, if only slightly.

Sell the stocks you’ve profited from.

Then wait for the next slump to create an opportunity, and repeat the cycle. With high probability, you’ll be able to make some money this way.

The difficulty in making money mainly lies in the inability to control oneself—just like gambling. When losing, it’s easy to get carried away.

Ordinary people play with tens of thousands, maybe hundreds of thousands, at most over a million.

The numbers involved in the sisters’ moves were in the billions.

Learning to control desire was especially important for the sisters. Their future playing field wouldn’t be on those small gambling tables.

It would hinge on national futures and include a series of global industrial policies.

Going even bigger, they could create their own game to shear the global “sheep.”

For now, this was merely their first step.

With nearly a month of summer vacation gone, Chen An’an was thrilled about buying the dip. She invested thirty-eight billion, but now only thirty-two billion remained.

A floating loss of 15%.

Er Piya’s five billion fluctuated; now only over four billion remained, with a similar floating loss of 12%.

The stock market carries risks, and no one is exempt.

As for Chen Pingsheng himself, he wouldn’t waste time on small stocks or short-term plays.

However, Tong Zelan had called him to set up a game—a joint effort to short a Wall Street-based new energy tech company valued at a hefty five hundred billion US dollars.

Like Tesla, this company made electric vehicles, but whether in sales or global impact, it lagged far behind Tesla.

Most critical was that, despite being founded nine years ago, it was still suffering massive losses.

For such a company to still hold a valuation of five hundred billion US dollars was highly likely to result in it being trampled underfoot.

In the domestic market, rules only allowed going long—short-selling wasn’t an option.

The concept of short-selling was simple.

You borrow stocks from an institution within a specified timeframe and return them by the agreed-upon deadline—for example, within six months.

If you borrow them when they’re priced at one hundred dollars each.

And return them when they’ve dropped to ten dollars, you’ll earn astronomically.

But if you borrow them at one hundred dollars and need to return them at one thousand dollars each.

The tenfold disparity means short-selling giants could lose everything—down to their last penny.

In straightforward terms, short-selling offers limited profit while bearing unlimited risk.

If a stock priced at one hundred dollars drops, it can only go to zero at most—the maximum gain is about one hundred dollars per share.

However, if losses pile up, it’s entirely different—one hundred can soar to one thousand or even ten thousand.

The losses borne in that scenario would increase nearly a hundredfold.

There had been a precedent like this in US stocks before, where retail investors banded together in an organized and premeditated manner to resist the Wall Street giants’ short-selling funds.

As a result, those short-selling funds lost over two hundred billion US dollars in a single day.

If the short-selling giants hadn’t resorted to some shady tactics at the last minute, numerous Wall Street short-selling capital firms would’ve gone bankrupt and been wiped clean during that incident.

Chen Pingsheng didn’t like this way of making money, but Tong Zelan often indulged in it.

Of course, before going all-in, she would investigate the targeted company thoroughly.

Then she’d ally with some Chinese capital forces for a joint strike.

She spent three months conducting research this time. Only after gaining comprehensive materials on the company did she reach out to Chen Pingsheng to propose a partnership.

Out of their long-standing cooperative relationship, Chen Pingsheng agreed to take on 30% of the success and risk.

Before initiating the short-selling, no capital investment was required—just borrowing shares from institutions.

This time, Tong Zelan clearly aimed for something big; she had borrowed shares worth a total of 120 billion US dollars.

The agreed-on timeframe was half a year.

Wall Street isn’t that expansive. News of Chinese forces shorting a certain new energy giant quickly circulated.

On the first day, Tong Zelan mobilized all major news agencies to release a series of negative analyses about the new energy company.

The aim, naturally, was to further suppress the company’s stock price.

Additionally, she sold ten billion US dollars’ worth of shares in one go to drive down the market.

Dumping large amounts while buying less always leads to falling stock prices.

Whenever a listed company encounters short-selling institutions, its stock price in the early stages always plummets.

Whether it can hold steady afterwards depends entirely on its own strength.

Back in the day, Alibaba faced Soros’s short-selling assault on the US stocks market.

Every day saw hundreds of billions of dollars flowing in and out—short-selling strategists versus Alibaba’s defense.

Perhaps this is the true thrill of the stock market.

After studying the targeted company’s detailed information, Chen Pingsheng confirmed that it truly lacked much potential. A valuation of five hundred billion US dollars sustained solely by continual financing was simply impossible to maintain.

The new energy vehicle market was now firmly dominated by Tesla, while countless other companies were lying in wait to seize opportunities.

This company’s inability to stabilize its stock price was highly probable. The most critical weakness was its minimal internal cash flow.

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