back to past life(on going)
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Even if I am confident that the stock will drop ten percent tomorrow, it will not guarantee that the stock market will continue to fall and stop when it reaches a negative ten percent. The market fluctuates randomly and can increase from one percent to two percent down. After that, it can go up two percent, then down three percent. In an instant, the market could collapse due to investor fears. That is why trading skills become more important than directing because the leverage ratio becomes higher.
If the leverage[1] is fifty-fold, the loss becomes fifty percent even if the value of the product drops by only one percent. Regardless of the final closing price, even a two percent drop in value would result in a hundred percent loss. Basically, this means the loss of the entire investment. It was as simple and cruel as that.
I received an email from Jonathan flying back to the US.
Jonathan: You want to put an entire four hundred thousand dollars into fifty-fold leverage? Do you really trust me or do you not care because it is not your own money?
Fifty times the leverage means we will invest twenty million dollars. Our profit will be fifty times over, and our loss will also be fifty times over.
But nevertheless! There's one important point. The game cannot be resumed again if the product's temporary value drops by two percent. It is called a margin call because the exchange market forcibly sells a product when someone ignores the warning. That is the biggest risk from leverage effects.
Jonathan is a man who has managed to live the best year of his life with his trading skills when a hedge fund union suffers in Hong Kong around October. If he believes in the trend I have shown him, he will be able to survive in that rough wave. My answer has been decided.
Seon-Hu: Don't be too suspicious of this trend. From now on, it's up to you. I'll wait for the good news.
Jonathan had no idea that now was the only opportunity to mobilize fifty-fold leverage through stock index futures trading.
***
I met Jonathan again at Gimpo Airport on Saturday, June 14. He flew back to Korea after telling me he had to meet me in person. He had not contacted me at all the week before, which was the 9th to 13th, and he appeared with an agitated expression. He must have come as soon as he finished trading. He would buy and sell, then repeat his progress again and again. I know how hard he works to maximize profits within the allotted time frame. Jonathan must have not slept for a week, and he looked impatient as he looked around to look for me at the gate.
Our eyes meet. Jonathan exerted every ounce of his energy and walked towards me. Then, he said the number instantly.
"Seven hundred," he said.
"Thank you for your efforts" I said.
“You didn't ask what that number means? This is not a percentage. I'm talking about seven hundredfold! Two hundred and eighty million dollars!” Jonathan looked like he was running into a monster, and he hugged me with all his strength. He kept shouting 'Jackpot! We had to go crazy!’, and, of course, we caught everyone's attention from that frenetic look. I bowed to the approaching airport police and kept Jonathan away from me. In my memory, he wasn't even too excited when he received the challenger-box level skill from the master box. He hugged me again with his eyes glittering with madness, so I had to apologize to the police.
Jonathan experienced a million emotions that he had been suppressing all week. Everyone kept staring at us as I dragged him out of the airport.
"Have you set your position?" I asked.
"of course! Be happy, Man!” Jonatan shouted in excitement. He has gotten more than I expected.
“You've finished exchanging money for dollars, right?” i asked.
Of course, he'll do it. That means we take two hundred and eighty million dollars from Thailand's foreign currency reserves again. The dollar has become more valuable than gold. The amount we made was enough to influence the Thai currency war. Thailand will declare its handover to the hedge fund union on July 2, and the baht will fall to its lowest level on the day. This is history before, but it could change because of our interference. In other words, Thailand might give up early. However, two hundred and eighty million dollars …
"Good job, Jonathan," I said.
"That's it?" He seems offended.
"You did better than I expected" I replied.
This was only possible for him because he knew the trend and had risked his entire savings on the words of a thirteen-year-old Asian boy. If it could be done well, I guess it could be considered a skill.
“Better than expected? All right, you can say that to me. And yet!" Jonathan raised his voice while scratching his head, “This is seventy thousand percent. It was an unprecedented level of income. I turned four hundred thousand dollars into two hundred and eighty million dollars. Yep! We've done it! We became the main players with just one chance! I don't believe this. This ... this doesn't make sense. What do we do?” Jonathan sounded confused and filled with mixed emotions.
"You need to sleep, Jonathan," I said.
“The most inexplicable thing is you, Sun[ref]Jonathan called Seon-ho 'Sun' because Sun and Seon are homonyms in Korean.[/ref] You are a mystery. The most plausible explanation is that you have won the Chinese Math Olympiad, ”Jonathan shrugged.
“This is Korea, Jonatan. How long has it been since you last slept?” It seems he can't sleep on the plane.
"Whatchu mean? I've been dreaming now, ”he said. Her red, inflamed eyes were staring at me fixedly.
"Okay, calm down first" I said as I pressed his shoulder as hard as I could.
He did not complain of pain. He was sitting and looking at me when he said, "I can't have a heart attack in front of two hundred and eighty million dollars!"
***
“Mother, I'll sleep in Seong-Ho's place. Dad's on a business trip, right? Lock the door tightly before going to bed,” I said.
Seong-Ho is not a made-up name. In my previous life, she was one of my closest friends from high school to high school. I will see his face in the same classroom when I go to school on Monday. At first, I was really happy to see her again because she disappeared from Advent Day.
But, I realized that we would never be close again when our eyes met again. To be honest, it would be more accurate to say that I had given up going through the process of becoming her friend. Therefore, Seong-Ho actually exists but is an imaginary friend to me.
I hung up the pay phone and went back to my room. Jonathan just took a shower but didn't sleep. He was wearing his bathrobe, and there were beer cans everywhere in front of him.
“Oh, My eyes!” Jonathan made me laugh by acting like he was greeting a goddess. It's hard to make me laugh.
"We belong to a hedge fund union, right?" She asked.
“…”
“When I traded the money, I felt like we were a hedge fund with just the two of us as a board! Hedge fund worth two hundred and eighty million dollars,” Jonathan enjoys the fact that we have joined the currency war as one of the major players. As he said, it means more because we managed to just use his capital rather than manage hot money from big investors.
“We were the owners of hedge funds yesterday, and today, we are millionaires. What a night!” His face was filled with joy.
"Let's sit here if you're not going to sleep" I said, and Jonathan did it with pleasure.
“Consider Thailand brings a fluctuating exchange rate system [2],” I said.
Jonathan took a breath, and his eyes changed. He knew that Thailand would basically give up if they did that.
“And let's say also that on D-day, we risk all our funds with the highest leverage. There will be no rallies because the baht fell that day. It will fall free without stopping, ”kataku.
Jonathan hiccups and waves his hand.
“You bet over two hundred million dollars without risk hedging? I've never heard anything crazier than that" he told me the truth. No one's ever done this before. As he mentioned earlier, no one can predict the future stock market unless they are gods.
"You think, how many two hundred million dollars is that?" I asked.
“...I should do that? I can't. Do you think the hedge fund union will remain silent when two hundred million dollars are wagered on the highest leverage for the baht decline? He looked at me like he couldn't believe what I was saying.
“So, we have to leave something for them. I told you that war is theirs,” I said.
“If day-H is wrong, we lose everything. Two hundred million.no, two hundred and eighty million rupiahs,” his objection.
“So you better get some sleep. We should start making data from tomorrow,” I continue, “We just need to confirm how much we take from Thailand foreign currency reserves in percentage.”
"You make it sound so easy, but it's hard to figure out" he said.
“According to you why did I say two hundred million dollars? Where do you think the other eighty million will go? I asked.
"A ... are you really thirteen?" He's dumbfounded.
"You can call the president of the Central Bank of Thailand, right?" i asked.
“You'll give them eighty million dollars just to see their warehouse? Did it work?” He didn't seem to believe me, but it worked. I just need to compare it to the July 2 recorded in history.
“Jonathan, visit Thailand. It's urgent," I said.
"We're going to be shot, the president and I. What if they refuse?" She asked.
Then, we will lower the leverage and set the date to July 1 although the income level will be much lowered.
“Eighty million dollars for letting us see a piece of paper in secret. Are you going to say no to that? Moreover, those eighty million dollars will not be given to the president alone, ”.
"Then who?" she asked.
“The President of the Central Bank of Thailand is a member of the royal family,” I said.
"It's even more dangerous!" He yelled.
“I'm sure there have been many backdoor attempts made by others. The royal family will guess that they will lose, and if they want to think about the future.they will receive eighty million dollars,” I explained.
"So, you can estimate if you look at that paper?" Jonathan said, scratching his head.
“Ya,” replied.
The hedge fund union will go to war, and I will reap the real benefits. However, the history of the financial crisis in Asia will not change much. Hedge funds will jump in excitedly as they have seen how alluring the spoils have been taken before their eyes. They will throw themselves harder into Malaysia, Indonesia, Hong Kong and South Korea.
"The sun!" Jonathan called my name out loud with a face mixed with thousands of emotions.
“1997 will be a glorious time for us. Let's bet two hundred million dollars on that!” he yelled.
Leverage investing is a technique that seeks higher returns by using borrowed money
an exchange rate system in which the price of a country's currency is determined by the foreign exchange market, depending on the relative supply and demand of another currency
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