It was indeed frightening!
EBay's share price soared as soon as the market opened, and it continued to rise. The momentum was simply terrifying …
However, for American brokers, they were very confident in eBay's share price. In their view, there were at least three strong supports for the rise of eBay's share price. The first was to make up for the previous losses; the second was to finally get PayPal in their hands, and this part of the benefits had to be digested; and the third was the huge benefits from the partnership between eBay and Makino Technology. The American market had already deeply realized the influence of Makino Technology and the speed of its rise. Therefore, the partnership between eBay and Makino Technology was great news for them.
With three strong supports, brokers, and eBay's shareholders adding fuel to the fire in the dark, the share price naturally rose like a wild horse out of control.
Wei Jun sighed as he looked at the computer. "Looks like the highest price today might break the 70 mark!"
Wei Lan hurriedly asked, "Dad, when are you going to sell this batch of shares?"
Wei Jun said, "eBay's momentum is very strong now. I have to hold it for at least a while. I think it's possible for it to reach 70, or even 80!"
Wei Lan immediately said, "You can't hold on to this mentality all the time. It's too risky. You have to set four psychological prices in your mind in advance."
Wei Jun asked, "Four psychological prices? What psychological prices? "
Wei Lan explained seriously, "The contraction price when the share price rises and falls, and the short position price when the share price rises and falls."
"If the share price continues to rise, after the contraction price rises, you have to immediately tighten your grip and sell at least a portion of the shares in your hands. You can first collect your capital and continue to hold the rest. If the share price starts to fall and falls to the contraction price, you have to immediately sell a portion of the shares to collect your capital and continue to hold the rest."
"If the share price keeps rising, when it reaches the rising short position price, you have to sell all the shares as soon as possible. Regardless of whether it has room to rise in the future, we have to withdraw at this price first. If the share price starts to fall, when it reaches the falling short position price, you have to sell all the shares, regardless of whether it can rise again or not."
Wei Lan and Wei Jun's mentality was very different. Wei Lan was rational and needed sufficient support before making a decision. He did not have the mentality of a gambler. As for Wei Jun, not only did he have the mentality of a gambler, but he also lacked the courage to stop losses and profits. His mentality was the most unsuitable for investing in stocks.
Driven by a gambler's mentality, Wei Jun did not leave any reserves when he invested in the stock market, which was very dangerous.
In Wei Lan's opinion, even if it was Li Mu who revealed the news, he should not have invested all his assets in it and borrowed money everywhere to further expand his position. This was the most standard gambler's mentality. In such a situation, if anything went wrong, there was a possibility that he would be doomed.
As for those who were not good at stopping losses and profits, they were more likely to be led by the nose by the stock price. The more profits they made, the more reluctant they were to withdraw from the stock price. They always felt that there was a bigger profit margin. The more losses they made, the more reluctant they were to cut their losses. They always hoped that the stock price would rise again. In the end, the stock price would always be in their hands, and the original profits would be consumed bit by bit.
It was hard to stop losses in time, but it was even harder to stop profits in time! Because of this, Wei Lan had asked her father to set these four psychological prices in advance and strictly implement them.
Wei Jun thought for a long time and said, "I think that in the long run, eBay's stock price will reach at least 100 US dollars. Then, let's set 100 US dollars as the price that you mentioned …"
Wei Lan immediately pulled a long face and said, "Dad! Li Mu had said that it would be short-term. He had never suggested holding eBay shares in the long run! Even if eBay could reach 100 US dollars in the future, who knows how long it would take! Moreover, you don't know how much of the skyrocketing stock price is driven by the market makers behind the scenes. If they want to use this wave of good news to attract small investors to buy at a high price, then once the stock price reaches their psychological expectations, they will immediately sell eBay shares in bulk. When that happens, the stock price will definitely plummet. "
After saying this, Wei Lan deliberately used the most serious tone to persuade her father, "Dad, no matter what you do in the future, you have to learn how to stop losses and profits. Our family has already suffered this loss …"
Wei Jun hesitated for a moment, and his expression gradually became serious. Wei Lan was right. His gambling mentality was indeed too heavy. He had no concept of stopping losses and profits at all. Ever since he started his business, his mind had always been thinking about how to maximize profits. He had never thought about stopping before going too far. Almost every game he played was a full-on bet. His luck had lasted for more than ten years, but he had completely lost in the biggest bet of his life. If it weren't for Li Mu, his family of three would probably have no future now.
This time, although Li Mu had kindly given him insider information, Li Mu's suggestion was for him to make a short-term investment, buy low and sell high to make a profit. If he really wanted to change to a medium or long term investment, without Li Mu's insider information, his confidence would immediately be reduced by half.
After thinking for a long time, Wei Jun said, "How about this? If the stock price breaks 70 US dollars, I will first sell 750,000 shares to recoup my capital, leaving me with 250,000 shares. If it falls below 65 US dollars, I will sell 800,000 shares. If it rises to 75 US dollars or falls to 55 US dollars, I will sell all of them."
Wei Lan sighed softly and said, "Why don't I ask Li Mu tomorrow and see what he says?"
Wei Jun immediately nodded. "That would be for the best!"
…
The skyrocketing stock price immediately made eBay the target of all the major media in the US. Most of the media were particularly optimistic about eBay's multiple collaborations with Makino Technology and PayPal. They were generous in their reports, and even Makino Technology was basking in the limelight.
With many positive promotions, a large number of media reports, and the various operations of brokers and shareholders, eBay's stock price shot up to 68 US dollars on the first trading day after Li Mu's press conference.
Li Mu didn't hear the news until the next morning, Hua Xia time. The stock price of 68 US dollars stunned Li Mu for a long time. Then he was annoyed. It was such a good opportunity to make money, but he gave it up because it was too troublesome. If he really wanted to make money, there must be a way to do it even if it was across the ocean.
Amazed by the unexpectedly positive feedback from the US market, Li Mu opened some US media websites and roughly learned about their reports on the collaboration between eBay and Makino Technology. He found that the US media reports were highly consistent. Everyone was talking about eBay's future development potential, but there was a potential negative news that was not reported in China. That was the agreement that eBay would avoid Taobao in the Hua Xia market in the future.
The Internet market in Hua Xia was getting bigger and bigger. For a company like eBay, it was a very important territory in the future. If eBay had to avoid Taobao in Hua Xia in the future, it meant that eBay's future development model and imagination would be much smaller. Although eBay did not have a direct business conflict with Taobao now, this was still a shackle for future development. If it was reported, it would more or less have some impact on eBay's stock price.
According to Li Mu's understanding of the US media, the US media was relatively objective most of the time. Moreover, different media had different inclinations. Some were conservative, and some were radical. Therefore, everyone's future development model and imagination should be a lot smaller. Although eBay and Taobao did not have a very direct business conflict, this was still a shackle for future development. If it was reported, it would have some impact on eBay's stock price.
The United States itself was a country with a very obvious lobbying system. It needed to be lobbied in politics, economy, and entertainment. Needless to say, the media. The media was the only key that could directly connect with politics, economy, and entertainment. There would often be people with various purposes to lobby the media so that the media's statements would be consistent.
With this in mind, Li Mu felt that there might be a big force that was adding fuel to the fire by taking advantage of eBay's skyrocketing trend. As for their purpose, he did not buy eBay shares, and it had nothing to do with him. Naturally, he could not be bothered to care.
Moreover, Li Mu was not very interested in eBay. eBay's future development was not big, and it was far from PayPal. Now that he had locked in 29% of PayPal's shares, he had locked in an additional market value of a few billion US dollars or even more than 10 billion US dollars for Makino Technology ten years later. Even if eBay were to go bankrupt in the future, it would have nothing to do with him.
On the other hand, the domestic media was celebrating the skyrocketing price of eBay's stock price. Almost all the media were praising Makino Technology in their reports. This was because they believed that the reason why eBay's stock price could rise so fiercely was because of Li Mu.
Therefore, there was a burst of praise for Li Mu in the domestic media. The only thing that surprised Li Mu was that no media had made a detailed report on the content of his speech yesterday.
The media had made detailed reports on the news of the skyrocketing price of eBay's stock price. Some media even consulted with securities experts in the United States. However, none of the media had organized a written report on Li Mu's remarks on housing prices last night.
Li Mu was quite surprised. When he was eating with Liu Shixiong and Lei Jianguo last night, both of them felt that he would definitely be criticized on the Internet today. Even if he was not criticized by name, some experts and scholars would come out and vaguely slap his face. However, they did not expect that the media would give him a cold shoulder. Just like the American media did not report on the development of eBay's Hua Xia, the Hua Xia media did not report on his bold prediction on housing prices.
Li Mu searched for a lot of domestic media websites, and even went out to buy several newspapers. When he came back, he looked through them page by page. All the news reports about his speech at the National People's Congress last night only wrote that he called on young people to believe in miracles and used the true story of Heinrich Schliemann as an example. The media did not mention anything about housing prices after that.
All of a sudden, Li Mu's mood was particularly heavy.
If the media maintained a high degree of unity, there must be a force behind it. No matter who was behind it, their core purpose was to control the spread of his related remarks.
It seemed that housing prices were always related to the fundamental interests of many people. They would not allow their interests to be challenged by him.
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