Chapter 19 You dare touch the imperial relatives?
Like all private equity firms, Fang Huan Investment places paramount importance on risk control, to the point of near-obsessive sensitivity.
They are pursuing long-term, stable returns, not short-term, fleeting windfalls.
Because everyone knows that trying to get rich overnight in the stock market is like running naked into a casino.
The end of greed is often a devastating loss that can destroy everything.
Therefore, Fang Huan Investment always adheres to cold mathematical models and only bets where the risk is lowest and the return is most secure.
Like a sophisticated water pump, it attempts to steadily extract profits from the pulse of the market.
This is precisely why, once traders get carried away, they start losing money out of control.
Those risk control managers who are constantly watching the screen with eyes as sharp as eagles will not hesitate to press the "pause" button, cutting off the chain of losses, and acting swiftly without showing any mercy.
"Well, today is going to be another day of howling and wailing."
Manager Zhang Wei rubbed his temples; the office was filled with a low-pressure atmosphere that blended coffee, cigarette smoke, and despair.
The market has been declining for days, and the bear market seems to have no end in sight.
While some experts may be able to make money by short selling, it is ultimately like dancing on a knife's edge, a contest of insight and courage.
After all, a decline is not a straight downward movement; it always involves repeated tug-of-wars between rebounds and setbacks. A slight misjudgment can result in a real loss of money.
Zhang Wei had just frozen several traders' accounts when the internal phone on his desk rang sharply, and the name " Liang Haiyuan " appeared on the screen.
"Hey Zhang! You stopped my transaction?!" The voice on the other end of the phone was like a thunderclap.
"Hmm." Zhang Wei's tone was flat, as if he were commenting on the nice weather: " Liang Haiyuan, you've already lost 4% in your account. According to the rules, you must stop."
"Bullshit! How many years have I been doing short-term trading? We old guys can hold on for 5%, right? Give me a break!"
Liang Haiyuan's voice was filled with impatience and disbelief.
"The market isn't doing well today, don't get carried away." Zhang Wei's voice remained flat, carrying a businesslike indifference.
Let's call it a day. Let's calm down; it'll be better for everyone.
"You! You motherfucker..."
Click.
Zhang Wei hung up the phone before the other person could finish swearing.
I feel like I'm wasting time listening to even one more word.
But this is just the beginning.
Immediately afterwards, the traders whose trading privileges had been cut off called one after another, wailing and howling.
[" Zhang Wei! Can you give me another chance? Just 1%! Give me another 1%! I promise I can make it back! Really!"]
A voice, trembling with tears, sounded like that of a gambler who had lost everything.
"Old Zhang! Help me, brother! If we don't make any money today, I'm packing my bags and leaving this month!"
This sounds even more pathetic; it's practically playing the victim.
Zhang Wei listened expressionlessly, thinking to himself: These guys are really no different from those gamblers who have lost all their money and are trying to borrow money to win it back.
Of course, he wasn't entirely unable to understand their situation.
The job of a trader sounds glamorous, but in reality, it's no different from being a freelancer.
They sign personal contracts with the company and receive a share of the profits.
This is why news of exorbitant salaries occasionally breaks out.
But what if there's no profit?
What if they even incurred losses?
The lost portion will be deducted from future bonuses proportionally.
They might even be kicked out of the house.
The rules are cold and devoid of any emotion.
That's how ruthless the financial industry is.
In terms of risk management, they are even more cold-blooded and unapproachable.
Perhaps a trader who is currently down 3% can turn a profit given more time.
But the cold, hard statistics ruthlessly point out that in most cases, they will only lose more.
Because once your mindset is unbalanced, your judgment becomes blurred, and you will only make more wrong trades, like sinking into quicksand, getting deeper and deeper.
Therefore, each trader has a preset loss threshold. Once this threshold is reached, the system automatically alerts, the risk manager manually confirms, and the trade is immediately stopped! There is no room for negotiation!
"Sigh, there's nothing I can do, it's my duty," Zhang Wei said calmly, his fingers flying across the keyboard as he processed the next alarm.
If he, as the risk manager, fails to supervise effectively, it could lead to increased losses.
Ultimately, the responsibility will come down on Zhang Wei's head in the form of a "performance review," enough to completely destroy his career.
"Um?"
Just as Zhang Wei was routinely dealing with these hectic matters, suddenly, he raised an eyebrow.
My gaze was drawn to the alarm flashing wildly in the corner of the monitor. The red alert was beating rapidly, like a heart attack, at a level and frequency far exceeding what was normal.
His eyes widened suddenly.
"What is this thing?!"
The screen displayed an outrageous operation: someone had used a massive sum of five million RMB!
Furthermore—completely ignoring all risk control, they poured all their chips into a single futures contract like water being poured out!
Not only that, this person was also making dazzling buy and sell transactions, jumping back and forth, every second!
"Holy crap! Where did this lunatic come from?!" Zhang Wei's heart pounded, and he blurted out.
Playing the short-term game?
no problem.
Many traders can execute trades every few seconds; that's their basic skill.
but!
Using 100% of one's own capital, without any diversified investment, only betting on futures products, and even engaging in this kind of ultra-high frequency short-term trading?
He had never heard of such a suicidal approach in his entire career!
It's like tying your head to your waist and jumping off a cliff!
It's pure suicide!
"Wait, this person..."
Zhang Wei instinctively wanted to click "Terminate Transaction," he had to stop this guy before he squandered five million RMB!
However, when his gaze fell on the name of that mad trader, he suddenly stopped, his fingertip hovering over the button.
" Su Hao...is that the guy from last time?"
Memories were instantly awakened.
That newcomer trader, who also managed zero risk and only invested in three stocks, inexplicably achieved an astonishing return.
He wanted to issue a warning, but Zhou Yi from the trading department stopped him, saying, "Don't worry about it."
Zhou Yi also meaningfully advised him that if he was really curious, he should ask his own boss, Manager Pan of the Risk Management Department.
He got busy later and forgot about it. I never expected it to happen today…
"..." Zhang Wei stared at the frantically jumping numbers on the screen, then looked at the name " Su Hao," and felt a vague sense that something was wrong.
An instinct prevented him from pressing the stop button, and he even felt a slight chill run down his spine.
He took a deep breath, stood up, and strode quickly toward the office of Pan Xun, the manager of the Risk Management Department.
"Manager." Zhang Wei's voice was a little hoarse.
"Hmm? What is it?" Manager Pan Xun didn't even look up, his fingers flying across the keyboard.
"Someone... uh... used all their capital, about five million, to do high-frequency short-term trading on a single gold futures contract."
"Oh?" Manager Pan Xun paused slightly. "Gold prices are doing quite well today. As long as risk is managed properly, it's not a big deal…"
"The problem is," Zhang Wei interrupted, his voice even lower, "that he didn't do any risk management at all. He gambled all five million in at once, and then gambled it all out again, over and over again."
Before he could finish speaking, Manager Pan Xun abruptly raised his head, his face ashen, slammed his hand on the table, and growled:
"Isn't that crazy?! Then why are you asking me? Stop it right now! What are you waiting for?! Have you lost your mind?" His face trembled with agitation.
"Yes, that's what I was planning to do," Zhang Wei continued, forcing a smile, "but the operator is that new trader… Manager, do you know him?"
"What? A newcomer?" Manager Pan Xun frowned.
It's normal for new people to come and go in private equity firms.
But if the person who pulled off such a spectacular move was a new trader...
His face, which had been contorted with anger, suddenly cooled down as if a bucket of ice water had been poured over it.
The anger subsided, replaced by a coldness and solemnity.
"Is that trader named Su Hao?" he asked in a deep voice, his tone no longer showing the anger he had just displayed.
"Yes, it was him. It was him last time too, buying three stocks with zero risk control. I wanted to remind him, but Zhou Yi from the trading department stopped me and said not to worry about it."
Zhang Wei nodded quickly and added:
"He also said... if I'm really curious, I'll just come and ask you directly."
"..." Manager Pan Xun's face turned extremely ugly, his expression shifting between light and dark, as if he were chewing on something bitter.
Zhang Wei cautiously observed his boss's expression, his ominous premonition growing stronger.
It was an expression that mixed feelings of embarrassment, helplessness, and even a hint of... apprehension.
After a long pause, Manager Pan Xun finally spoke, his voice a little hoarse: "...Ignore him."
"Huh?" Zhang Wei was stunned: "But... that's five million! Are we just going to let him do whatever he wants?"
"Yes." Manager Pan Xun's tone was resolute, carrying an undeniable weariness: "This is better for you and for me."
What kind of talk is that?
Zhang Wei was completely dumbfounded.
Normally, this manager would have been furious and wanted to smash the person's computer himself!
Seeing Zhang Wei's blank expression, Manager Pan Xun lowered his voice, leaned closer, and almost whispered:
"That trader was someone...sent down from above."
"Ah... could it be..."
Zhang Wei instantly understood something, his heart sank, and a terrible guess surfaced in his mind.
"You're right." Manager Pan Xun's gaze was sharp as a knife, filled with a knowing look: "That's it!"
A person with connections!
Crown Prince!
Royal relatives!
No wonder!
No wonder Zhou Yi said those things!
Zhang Wei suddenly understood, but also felt a chill.
"I think that old fox Zhou Yi probably doesn't know how to handle this either, so he's just letting things drift."
Manager Pan Xun continued to whisper, his tone tinged with helplessness and apprehension:
"This is a hot potato that even the trading department dares not touch. If our Risk Management Department rashly intervenes and something goes wrong... we'll all be finished! Do you understand what I mean?"
"But... what if he loses all the money? Won't the higher-ups hold us accountable for our negligence in risk management?"
Zhang Wei remained worried.
This is too risky!
"We can only pray that that doesn't happen." Manager Pan Xun sighed.
"What else can we do? Stop his transaction now? Okay, go ahead and stop it. But can you handle the trouble that follows?"
"I…can't take that responsibility," Zhang Wei honestly admitted.
Let alone a mere supervisor like him, even Manager Pan Xun probably couldn't handle the responsibility.
"Then pretend you didn't see it." Manager Pan Xun patted him on the shoulder, his tone softening slightly.
"Xiao Zhang, you've worked so hard for so many years, it's not easy. Don't ruin your future over this, it's not worth it."
The manager's words were like ice water poured over his head. Zhang Wei silently returned to his seat, a cold sweat breaking out on his back.
My heart was still pounding wildly, as if it were about to jump out of my throat.
What if... what if I couldn't resist and pressed the stop button...
"Phew—" He exhaled a long breath of stale air. Just thinking about the consequences made his scalp tingle and he felt a wave of fear.