Chapter 50: The Conclusion of the Huaxin Simulated Trading Contest

April 22nd, the rain stopped and the weather cleared up.

For renowned domestic financial universities such as Shanghai University of Finance and Economics, Central University of Finance and Economics, and Southwestern University of Finance and Economics, today was an exceptionally important day.

The "Huaxin Simulated Trading Competition," lasting 45 days and spanning a total of 33 trading sessions, concluded today. This competition was spearheaded by Huaxin Securities and collectively recognized by major securities firms.

In previous years, this day was also known as the final carnival of gamblers.

Students ranked outside the top ten who wished to turn the tables against the wind had no choice but to target high-risk, high-return market concept stocks.

However, today's broader market dealt them a heavy blow.

The leading stock of the securities sector, Huaxin Securities, opened rising to 26.65 yuan, but in less than five minutes, it plummeted from its opening price of 26.5 yuan. By the market close, it had dropped 5.4%, bringing its share price down to 25.07 yuan.

The sharp correction in the securities sector directly dragged the broader market down with it.

The Shanghai Composite Index plunged by 2.94%, dropping from an opening point of 2548.11 to 2461.35, with trading volume breaking through 17.76 billion.

The Shenzhen Component Index experienced an even more ferocious correction, opening at 9689.16 and closing at 9249.08, a decline of 4.06%!

Those who chased after the highs were utterly wiped out.

The aggressive ones were left with none spared.

Only the students who maintained zero positions or held defensive sectors managed to escape relatively unscathed, avoiding a catastrophic drop in their rankings.

...

Shanghai Finance Library.

Financial Analysis Room Study Area.

Zhang Yang stretched lazily. He had anticipated the market's decline long ago, but what came as a surprise was that the defensive coal sector was also following the market down.

"What's your return rate?"

Zhang Yang glanced sideways to ask.

He Jing, beside him, slid her laptop over to display her securities account, saying, "It's a bit of a pity. Today was a broad-based decline with hundreds of stocks hitting their limit down. My account took losses too, and my return rate is locked at 57.4%."

"That's already impressive. Buffett only averages about 25% a year, and you've doubled that in just one month," Zhang Yang said calmly.

"This is just a simulated account; there's no comparing it to real trading, where you have to factor in capital divergence." He Jing wasn't foolish; she clearly understood the differences between real-money trading and simulated trading.

Many retail investors who lose money in actual trading actually start by making money in simulated accounts.

Once they double their money in a simulation, they start thinking they are investment geniuses, only to enter the real market and almost lose the shirts off their backs.

Why does this happen?

Two words: mindset.

Even if simulated funds are completely wiped out, retail investors won't feel the pinch, so they dare to take bold actions.

Once they switch to real money, however, many retail investors grow timid and hesitant, making them prone to getting beaten on both fronts.

Of course.

There is one more crucial point.

That is, in simulated trading, the stock makers cannot see your capital, whereas when your real capital enters, the market makers record every bit of it.

This is similar to a balance scale: on one side is the主力 (main force's) harvest line—say, 10 million in capital—and on the other is the retail investors' entering capital. The moment retail investors push in 10 million and the scale levels out, the main force's capital has to exit.

Being able to maintain a stable annual return rate of 25% like Warren Buffett is the ultimate goal every fund manager and investor strives to achieve.

"And you?"

"How much did you make today?"

He Jing turned the question back to Zhang Yang.

Zhang Yang also displayed his account. The shares of China Shenhua he bought had dropped 4.26% for the single day, down 6.77% since he bought them at the close on the 20th, but China Yangtze Power had brought a 4.33% gain, pushing its share price to 11.86 yuan.

"Coal dropped that much?"

He Jing was somewhat surprised.

Logically speaking, traditional energy sectors like this should have the strongest resistance to declines, yet over the past two days, it had fallen even more fiercely than the securities sector.

Zhang Yang's mindset remained unaffected as he said calmly, "That's the charm of A-shares. No one can guarantee a 100% win rate."

China Shenhua had fallen for two consecutive days, breaking below the 5-day moving average, so he wasn't in a hurry to increase his position; instead, he was waiting for an upward signal first.

Investing in A-shares requires extreme patience, and one must never rush to average down just because prices fall.

Because averaging down might seem like it dilutes costs, but that only applies in an upward market. If the stock price continues to fall, not only will costs fail to be diluted, but you will also find yourself deeply trapped.

"Let's head to class. Professor Wang Xingbang said many senior alumni from securities firms will be back today, so let's get ready," He Jing said, well aware of the perils of the A-shares as she shifted the topic.

"Class at three?"

Zhang Yang asked.

He Jing: "Yeah, 3:15."

"Let's go then."

Zhang Yang first sent messages to Lai Weijie and Xu Zhiruo, then packed up his laptop and walked with He Jing toward the tiered lecture hall.

...

Meanwhile.

Shanghai Finance School of Accounting.

The accounting major is an A+ ace specialty of Shanghai University of Finance and Economics, far surpassing other financial universities. At the same time, graduates of Shanghai Finance's accounting program are externally known as the "Tilanqiao Academy Reserve Trainees."

At this moment, in the tiered lecture hall for the accounting class, Xu Zhiruo—who sported long, straight black hair with neat bangs and wore a Japanese-customized academy-style uniform—saw an email pop-up in the lower-right corner of her laptop and subconsciously clicked to view it.

When she saw it was a candid photo of Zhang Yang and He Jing walking out of the library, she couldn't help cursing inwardly: "Which absolute moron keeps sending me pictures of Zhang Yang interacting with girls all day long?"

Ever since she took up Xu Zhiruo's request to invite Zhang Yang out for coffee, her inbox had been like it was infected with a virus, with someone constantly reporting Zhang Yang's whereabouts to her anonymously.

Over these past ten-plus days, she was well aware of every single girl Zhang Yang had come into contact with, even knowing when he chatted with the dormitory building supervisor.

Anyone unaware would think she had hired a private detective to track Zhang Yang just to satisfy some voyeuristic fetish.

Yet apart from Xu Zhiruo, only Xu Zhiruo herself knew that, aside from a fondness for reading adult anime, she had no other strange habits.

At first, Xu Zhiruo had wondered if this was one of Zhang Yang's pranks, or if he was trying to use this method to grab her attention.

After over ten days of observation, however, she basically ruled out the possibility of it being a prank by Zhang Yang.

In Xu Zhiruo's view, if Zhang Yang were trying to court someone using this method, it would truly be perverted and utterly retarded.

Was Zhang Yang perverted and retarded?

Pervertedness aside for the moment, since Xu Zhiruo hadn't investigated deeply, but as for being retarded, that certainly didn't seem to apply to Zhang Yang.

Therefore, she found this person secretly reporting Zhang Yang's whereabouts to her quite annoying. If this leaked out, outsiders might mistakenly think Xu Zhiruo had a fetish for peeping at men.

She didn't want to suffer a "social death," nor could she afford to, and she certainly couldn't ruin her image as the "Accounting Goddess" of Shanghai University of Finance and Economics.

...

While Xu Zhiruo was inwardly cursing the sender of the anonymous emails, in the tiered lecture hall 201 of the First Teaching Building, successful and glamorous senior alumni were standing on both sides of the podium.

Tao Yuang, serving as the representative of Huaxin Securities, was also standing in the podium area at that moment, exchanging a nod and meeting Zhang Yang's gaze.

Wearing a thick wig that made him look just over forty years old, Professor Wang Xingbang picked up the roster and began calling roll.

"Dong Lulu."

"Here."

"Meng Juncai."

"Here."

...

"Xu Jiafeng."

"Here."

"Zhang Yang."

"Here."

Student after student answered the roll call. Once it was confirmed that no students were absent, Professor Wang promptly announced, "The 45-day 'Huaxin Simulated Trading Competition' has come to a close. I will now announce the list of students in the top ten of the major."