Hedging is a common method used in financial investments, and it is usually combined with leverage. Simply put, it is to buy up and down, and earn the difference in the middle.
Because of leverage, the profits are high. But if the forecast is wrong, the losses will be lesser.
Soros is an expert in hedging.
Feng Yu is certain that crude oil will surely rise, and that's why he did not hedge. But he also does not dare to use too much leverage, and he had set aside some risk reserves to stop his losses.
With so many funds buying crude oil futures, and all of them are bullish, this has attracted the attention of many investors. But those individual investors do not know that their funds could be used as the main investment.
At this time, they need some guidance.
How to guide the investors? It's simple. Advertise to the public.
Of course, advertising must be done in a way. If it is a news interview, it will be easier for people to accept it.
Today, He Zhaoji was doing a program called "Financial Trends". To put it bluntly, it was similar to the stock market news you see on TV. It was just a host and a famous financial expert explaining some financial matters and making some predictions about the future.
In Feng Yu's previous life, many financial experts had stopped making predictions because many of their predictions had failed. And because their predictions had failed, they had lost a large number of people, and many of them had lost their minds.
For example, when the financial experts said the coal prices might rise in the next few days, it is just a possibility. But those who do not know the market will buy the coal prices and use high leverage.
In the end, the coal prices fell slightly, and they were forced to close out their positions.
They didn't know that there was any risk reserve that could reduce the leverage at any time. They also didn't know that there was such a method as hedging. They only knew that the higher the leverage, the more they could earn. However, they ignored the fact that there was a high possibility of losing everything.
Some of these people went to the financial experts and asked them to compensate them. But the financial experts did not charge them a single cent.
In the next two days, the coal prices rose, and the financial experts are right. But so what? Those who lost all their money cannot get it back, and they still want to find trouble with the financial experts.
Financial experts hope that more people will invest in the financial industry. This way, the more people participate, the more funds are invested, and the more prosperous the financial market will be.
However, they were afraid of this kind of person, who knew little and was especially greedy, and liked to blame others for their mistakes.
Of course, there were many financial experts who were successful. But those people who made money did not pay the financial experts a single cent of commission.
There were also financial experts with obvious bias when giving advice, and there were even examples of deliberately manipulating the stock price. It was to trick people into buying a type of futures or stocks, and then the big bankers behind them would manipulate it to make money.
If this kind of person was caught, he would be sentenced.
He Zhaoji's "Financial Trends" program had to make some predictions. If not, how could it be called "Financial Trends"?
However, this prediction of his would be more tactful. Just like those fortune-tellers, they would speak ambiguously and give you some biased hints.
"The financial expert we invited today is the General Manager of Wind & Rain Consulting, Mr. He Zhaoji. Mr. He, please say hello to the audience in front of the TV, "the hostess said with a smile.
"Hi, everyone. I am He Zhaoji."
"Mr. He, welcome to our show as a guest and give us some pointers. We received news that Wind & Rain Consulting had liquidated all their gold futures investments and did not buy any more gold futures, right? "
He Zhaoji nodded. "That's right. Gold prices had fluctuated too much recently, and there are many reasons for this. It is very troublesome to operate, and we are mainly doing hedging, so it is hard for us to make money. "
"Mr. He, are you saying that gold prices will not change much in the future?" The hostess asked again.
"No. I think gold prices will continue to rise in the future, but in the short term, the fluctuations will be very intense. If Wind & Rain Consulting is going to invest in gold futures, they must stick to long-term investment principles and not use high leverage. "
He Zhaoji did not tell the audience how to buy gold futures, but he told them about Wind & Rain Consulting's choice. But this answer disappointed many of the audience.
Investing in futures is to use leverage to make higher profits in the short term. If you want us to stick to long-term investments and not use high leverage, then what's the point of investing? It's better to buy stocks. That way, we'll be able to get more returns.
"Mr. He, what do you think should be the main investments in the financial sector?"
"In the short term, there are many products that we can invest in. For example, Forex futures, energy futures, stock index futures, stocks, etc. These are all good investments, and they are also the main investment direction for Wind & Rain Consulting."
"What do you think should we invest in?"
"It's about the same. If we do well in any of these products, we will make high profits. But I am investing in crude oil futures. "
"What about Wind & Rain Consulting? Is your main investment also in crude oil futures? "The hostess asked.
He Zhaoji smiled and did not answer. But this smile made the audience think this is the case. If not, why would He Zhaoji buy crude oil futures? It must be because his company is also optimistic.
Wind and Rain Consulting has a strong information analysis team. They have sources not only in Hong Kong but also in many financial markets around the world.
Most importantly, Wind & Rain Consulting had never suffered losses before.
Even Wind & Rain Consulting is buying crude oil futures, and that means crude oil futures will be profitable.
"Mr. He, do you think crude oil futures will rise or fall in the short term?"
He Zhaoji did not answer directly. He replied: "I heard Iran had announced a reduction in oil production, and the other OPEC countries might also respond."
Feng Yu looked at the TV. Old He looks good on TV after dressing up. Who knew how many young girls would fall head over heels for Old He?
Old He's words represent Wind & Rain Consulting's attitude. This program will not only be aired in Hong Kong, but it will also be aired on Youtubo, some US, and European TV stations.
He Zhaoji might not be famous in those places, but Wind & Rain Consulting is famous in some financial institutions.
Just this point alone could attract a large number of speculators to enter the market.
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