Chapter 4: Start making money
"If I had a large amount of venture capital, I would definitely not enter the stock market and invest in stocks at this time, nor would I enter the real estate market and invest in buying a house at this time." Yang Hai said very affirmatively.

"Oh! Why? Don't you think highly of the current stock market and real estate market? Can you be more specific?" Mr. Shen asked with interest.

"Obviously, even the small street vendors are discussing stocks and have joined the army of stock speculators. This shows that the current stock market has reached its peak. I predict that in two months at most, the stock market will fall too much. Entering the stock market at this time means taking over at a high price and waiting to be harvested." Yang Hai said.

"It's the same with the property market. House prices are too high right now. I think in two months at most, they will fall significantly."

"But some people have always said that the stock market is going to crash. However, the bull market has continued since the second half of 2005. Although stock prices have occasionally fallen back, overall, they are still rising," said Mr. Shen.

"As for housing prices, a big drop is unlikely. At most, they will not rise, or they may fall slightly."

"If housing prices fall sharply, it will have a huge impact on our country's economic development."

"It will indeed have a great impact on our country's economy. Next year will be a very difficult year for our country's economic development." Yang Hai nodded and said.

"Oh! Why do you say that?" Mr. Shen asked curiously.

"It's very simple. The subprime mortgage crisis has already occurred in the United States and has swept across the country. For this reason, the United States has already started the first interest rate cut and will soon start the second interest rate cut."

"Lowering interest rates will lead to a weaker dollar and a depreciation of the dollar."

"Before 2006, the US real estate market continued to prosper. Many people without stable jobs, stable income sources, and bad credit also tried to buy houses. However, they could not apply for formal loans from banks and could only look for secondary loans."

"Second-tier loan companies do not have high qualifications for borrowers, but the interest they require is much higher than the loans issued by regular banks."

"The U.S. economy is now in recession and the real estate market is cooling down. Once people with bad credit, low income and unstable jobs lose their jobs, they will be unable to repay their loans. In addition, the real estate market is cooling down, so it will be difficult for them to refinance their mortgages and sell their houses. The more house prices fall, the harder it will be to sell houses."

"The bank couldn't collect the loans, and the houses it repossessed were worthless and couldn't be sold at a low price. Eventually, the bank ran out of funds and had to go bankrupt."

"This subprime mortgage crisis in the United States will affect the entire world, triggering a global financial tsunami and a global financial crisis. Naturally, our country will not be immune to it."

"When the dollar depreciates and the unemployment rate in the United States increases, our export trade will also be greatly affected."

"Many domestic companies are engaged in foreign trade orders. When the time comes, the orders will drop sharply. In addition, due to the depreciation of the US dollar and the appreciation of the RMB, many companies dare not accept foreign trade orders even if they have them. If they accept them, they will lose money!"

"In the past, one US dollar could be exchanged for more than eight RMB. As the US dollar depreciated, the RMB appreciated. Now one US dollar can only be exchanged for more than seven RMB. The profit of foreign trade orders is not high to begin with, and the US dollar has depreciated, which means that their little profit has been wiped out."

"By then, a large number of migrant workers in coastal areas will inevitably lose their jobs and have no choice but to return to their hometowns."

"A large number of people have lost their jobs, and a large number of factories have closed down. Where can people who bought houses before get the money to pay off their mortgage loans?"

……

Yang Hai couldn't help but talk a lot, and the more Mr. Shen listened, the more serious his face became, and his brows furrowed tightly. He interrupted from time to time to ask Yang Hai some specific questions.

Before his rebirth, Yang Hai happened to be quite interested in these major events and had read a lot of articles and analyses on this subject, so he was able to talk about them freely at this time and expressed all these views.

It is also his duty and mission to gain the favor of his father-in-law, and he has a very strong sense of professional ethics.

Since I have taken 100 million from Shen Ruobing, I naturally have to act hard.

When returning, Shen Ruobing was very satisfied with Yang Hai's performance today.

"How did you do it? You made my dad so happy and he praised you to the sky." Shen Ruobing asked curiously.

"Since I've taken your money, I must act well! I still have a strong professional ethics. If I can't satisfy your father, it proves that I'm a failure in acting." Yang Hai said with a smile.

"Really? You're not trying to make the fake real and really want to be my husband!" Shen Ruobing said warily.

"I'm telling you, you'd better not think like that. I have very high requirements for my future husband." "At least he has to be tall, rich and handsome, and definitely stronger than me. I don't want to marry a man who lives off me."

Yang Hai sneered and said, "Don't worry, I don't want to marry a strong woman either. It would be best if you don't refuse to divorce after three years."

"What a joke! I would stick with you and don't want to divorce you. What gives you the right to do that?" Shen Ruobing said in disbelief with her eyes wide open.

"In three years, I will be richer and more successful than you." Yang Hai said confidently.

"I hope so. I'm looking forward to the moment when you make me fall in love with you." Shen Ruobing said without believing it at all.

After Shen Ruobing drove Yang Hai home, she left and did not go home with Yang Hai.

It is normal for wealthy people to have several properties. Anyway, it is impossible for Shen Ruobing to move back to her own parents' home.

After arriving home, Yang Hai took out his laptop, plugged in the Internet cable, and started making money.

He first downloaded the international crude oil futures trading software from the Hong Kong securities company, looked at the trend of international crude oil futures prices, and found that they had indeed fallen a lot in August.

It is only September 9rd now, and the international crude oil futures price is still at a low level, with the current price being US$3 per barrel.

Yang Hai thought back to his memories before his rebirth. In September 2007, the international crude oil futures price would not fall below US$9 a barrel.

On September 9, the international crude oil futures price broke through US$13 a barrel.

In other words, now is a relatively safe time to purchase international crude oil futures.

Yang Hai thought about it and decided to buy 50 lots of international futures first.

International crude oil futures trading generally uses a leverage of 1:100. To buy 50 lots of international crude oil futures, you only need to pay a 37650% margin, which is US$.

However, you generally need to transfer more margin to your futures account, otherwise it will be easy to get liquidated.

Because once your margin is not enough, the futures company will force liquidation of your account.

50 lots of international crude oil futures are equivalent to 5 barrels of international crude oil. Every one cent fluctuation in the international crude oil futures price is equivalent to 500 US dollars.

Every dollar fluctuation equals $5.

Yang Hai has 10 US dollars in his account. After deducting the margin, he still has 63500 US dollars. Since he already knows that the price will not fall below 78 US dollars a barrel, it is absolutely safe to buy 50 lots of international crude oil futures long orders.

If the price really falls below $78 a barrel, you can stop the loss in time. At least you can keep some capital and still have the strength to fight!

After all the long orders bought by Yang Hai were executed, the average transaction price was US$78.62, up another nine cents.

Then it rose all the way to US$78.79 a barrel, then turned downward again, quickly fell below the cost price, fell back to US$78.55 a barrel, and then rose again.

The futures market is unpredictable and thrilling. Without strong psychological endurance, it is impossible to withstand the stimulation brought about by such a huge gap.

After that, the trend of international crude oil futures prices has been ups and downs, rising steadily. Although the short side tried its best to fight, the long side was really too strong.

An hour later, the international crude oil futures price broke through US$79 a barrel, reaching US$79.0, and Yang Hai's account showed a floating profit of US$20500.

Earning more than 2 US dollars in an hour, this is the infinite excitement that futures trading brings to people.

(End of this chapter)