How much money does it cost to be a banker?

There is a retail investor who only spends a few hundred thousand to be a banker in the financial market, making money by using the existing market mechanism with extremely low risk.

The China Securities Regulatory Commission issued a notice today: A small retail investor named Zhang Ming used hundreds of thousands of dollars to manipulate the market and earned 1.54 million in two years. He was arrested on suspicion of market manipulation.

Operation method: Lao Zhang specifically looks for LOF funds with no trading volume. This type of fund can be traded directly with a stock account and also supports subscription and redemption.

The target he chose has several characteristics:

1. Extremely low liquidity

2. Extremely low trading volume

3. No other financial forces interfere

4. Low market capitalization

How to do it:

1. First, accumulate funds. The way to accumulate funds is not to buy in the secondary market.

Instead, shares are subscribed through on-site fund subscription, which will not affect the price in the secondary market.

(By referring to the cryptocurrency circle, are there any methods of absorbing funds that will not affect the market? Over-the-counter/OTC/group chat, etc.)

2. After the fund is raised, he will go to the secondary market to raise the price of the fund. He will use different accounts under his control to trade securities and buy and sell by himself. He can push the price up to the daily limit with just tens of thousands of yuan.

(There are also several market-making addresses + trading robots in the cryptocurrency circle to implement market-making strategies. Some trading tracks are highly attrited, and the dealers are less willing to enter the market because the cost of making a market is high and the efficiency is slow.)

3. After hitting several daily limit ups in a row, usually two, they will use various methods to attract retail investors to enter the market, and wait until the third daily limit up (or create the power of external funds to take over, then start selling and throw the chips in their hands to retail investors).

(Friends who follow me may find that my winning rate is not bad this year. Why? Because I pay close attention to one point, which is the cost invested by the dealer and the proportion of external funds on the board. If a target dealer continues to invest costs, and is unwilling to sacrifice the child to catch the wolf, and has not yet entered the main wave for external funds to enter the market, there are generally better opportunities to participate)

4. What if no one takes over?

Because the chips are subscribed on the market through market mechanisms, the cost is very low, and due to the characteristics of bond funds, the net value fluctuates very little, and through redemption on the market, at least the principal can be preserved.

(In the cryptocurrency circle, it is very important to find a low-cost way to participate, or to know where your costs are spent. GAS mining is a relatively low-cost way to participate. There is a master in this regard, @KuiGas. Why is Brother Fengmi so successful in GAS mining? Because he has done a very in-depth study to understand where his GAS is spent. Many new investors don’t know that the project party also has a GAS consumption income agreement. It is very important to know who your contributed GAS goes to. If you don’t give it to the project party, and the project party doesn’t get financing support, why would they airdrop it to you?)

5.How was he caught?

The price increases of these funds with low trading volume and low turnover in the secondary market are abnormal, and the deviation from the net value increase of products in the same period is relatively high.

(It is difficult to catch MEME. For some listed targets, if the trading volume suddenly becomes abnormal, there must be something wrong. Let me tell you a well-known one: TRB. The routines of this type of market maker coins are similar.)

Finally, guess whether this kind of opportunity/trap will appear in MEME?

According to the statistics of the penalty data released, during the manipulation period, the account group subscribed more than 20 million yuan of funds involved in the case in Shenzhen and Shanghai, and made a total profit of more than 1.5 million yuan. Among them, the account group subscribed a total of 16.6706 million yuan of funds involved in the case in Shenzhen, making a profit of 979,500 yuan; the account group subscribed a total of 3.4865 million yuan of funds involved in the case in Shanghai, making a profit of 556,400 yuan.

The CSRC adopted a "confiscation and double punishment" penalty against Zhang Ming, confiscating his illegal gains of 1.5359 million yuan and imposing a fine of 3.0718 million yuan.

This guy is pretty miserable, he uses his brain and market mechanism to make a living, but he doesn't make much money, and he still got arrested. It's really hard to get by without some background and protection money.