Chapter 28: Higher Risks, Higher Rewards!

"Forget about whether this Li Zhi is the same person who won the Miss Asia pageant last year," Luo Zhiqiang, the branch manager of Xiangshang Securities, instructed all the traders present. "Right now, we only need to follow this account's trades! Whatever this account buys, we buy! Whatever this account sells, we sell! Keep up! Do not fall behind!"

"Manager Luo, even though the vast majority of this account's trades are profitable," a trader named Zhang Guanjie interjected, stepping forward to voice his opposition, "it is, after all, a newly opened account! And it belongs to a retail investor of unknown origin! If we all blindly follow this account, and something goes wrong, our firm will suffer severe losses! Our reputation will be ruined! I believe we should be more cautious."

Zhang was a star trader at Xiangshang Securities and one of the few who had managed to maintain profitability in the current sluggish Hong Kong stock market. Although he, too, was stunned by the account's trading history, he remained confident that his own trading skills were top-tier—perhaps even comparable to those of their boss, Xiang Zhiqiu—and felt no need to tail a retail account.

"Guanjie," Luo replied, "surely you've seen the transaction records. Since the account was opened, it has rarely suffered a loss. That speaks for itself. I don't think we'll have any problems following it."

"Well, I won't be following it," Zhang insisted.

"Fine," Luo said. "I won't force you. If anyone else is unwilling, I won't force you either. But let me be clear: this firm does not support underperforming traders. Whoever has the worst results by the end of the month will be shown the door. Now, everyone, back to work."

As his voice faded, the traders exchanged uneasy glances before quickly returning to their stations. Most of them had been posting losses recently, so they chose to mimic the Li Zhi account's moves. Only a handful of the more skilled traders, like Zhang, stuck to their own strategies. The office was soon filled with the frantic clatter of keyboards as everyone raced against time.

...

Elsewhere, at the Stock Exchange trading hall, Chen Hao continued to collaborate with Li Zhi. As he traded, his brow furrowed.

"What's wrong?" the observant Li Zhi asked. "Is something not right?"

"I've noticed that the price fluctuations of the stocks I'm buying have been quite large lately," Chen replied. "They no longer align with the previous patterns."

Li Zhi's expression shifted slightly. "Does that affect our returns?"

"On the contrary, it increases them," Chen explained. "I've noticed a sudden surge in trading volume for these stocks. Higher volume drives up the price, so our returns are actually much higher than before."

"Oh, our profits have increased?" Li Zhi beamed. "That's good news!"

"However," Chen added, "with higher returns come higher risks."

"Risk? How so?" Li Zhi was bewildered.

"It's simple. Higher volume leads to greater volatility. What goes up quickly can come down just as fast. I've noticed that every time I sell a stock, a flood of identical sell orders follows immediately after, causing the price to plummet. That is where the risk lies."

Li Zhi nodded, though she only half-understood. "Will we lose money?"

"No need to worry," Chen said with a faint smile. "My execution is fast enough to sell before the price drops."

Relieved, Li Zhi relaxed. Chen continued his rapid-fire, ultra-short-term trading. Having adjusted his strategy to account for the anomalies, he managed to sell just before the price dives. While the risk had intensified, so had the rewards. To him, the erratic volatility was a blessing, though it demanded an exhausting level of mental focus. By the time the market closed that afternoon, his brain felt drained, leaving him dizzy and unwell.

"Chen Hao, you look terrible," Li Zhi said, her heart aching for him. "Let's get you home so you can rest."

She helped him out of the trading hall and hailed a taxi. Once inside, Chen closed his eyes to recover. Li Zhi let him rest his head on her shoulder, remaining silent to avoid disturbing him as she watched over him. Suddenly, Chen snapped his eyes open and muttered, "I know what's happening..."