Chapter 059: Supportive Electronic Orders

Zhou Yi hadn't seen the electronic orders earlier. Looking at the current market for HDSN, it was clear that such a heavy position wasn't justified.

Zheng Junpeng overheard and asked, "What stock? How many shares did you buy?"

"HDSN, 300 shares long," Zhou Yi replied.

Zheng Junpeng glanced over, frowning as he checked the chart. "Were there large orders suppressing the price earlier?"

Zheng Junpeng had a better grasp of the situation. One look at the chart and he had a rough idea.

"Yeah, electronic orders were pushing it down to 1.85. I impulsively bought 300 shares. It doesn't look easy to exit," Chen Wei said calmly.

"The spread is quite large. Maybe I can help by putting in some buy orders," Zheng Junpeng suggested, placing a buy order for ten shares at 1.90, followed by a few more small orders.

"Forget it, just cancel them. You guys focus on your own trades. I'll hold for now, and if it goes bad, I'll just cut my losses. It won't be much," Chen Wei advised, seeing that the buy orders weren't gaining traction.

Zheng Junpeng agreed, seeing the limited effect, and withdrew his order. "Alright then, be careful."

Zhou Yi also shook his head and returned to his own trading.

Just as Zhou Yi turned back, a series of electronic buy orders suddenly appeared at 1.90 on HDSN's chart, similar to the sell orders earlier but now pushing up the price.

Chen Wei was pleasantly surprised.

"This is interesting!" he said.

"Hey, Lao Zheng, look at that stock again," Chen Wei called out to Zheng Junpeng.

Zhou Yi also switched back to HDSN.

"Oh wow, they're buying!" Zhou Yi exclaimed.

"This stock is interesting. Let's keep an eye on it. I'll try to push the electronic orders up a bit more," Zheng Junpeng said, placing another buy order for ten shares at 1.91.

As soon as he did, a string of electronic orders followed at 1.91.

"This is annoying! There's no way to buy in now!" Zhou Yi complained. The stock's volume was low, and with the buy orders supporting it, there was hardly any downward movement. The only sell orders were at 2.00, making it impractical to buy long with such a spread.

"Why are you in such a rush? Earlier, they were suppressing the price with electronic orders; now they're supporting it. I'll pull the orders up, and once Chen Wei is out, we can try to short it again. We might trigger sell orders," Zheng Junpeng explained.

Zhou Yi realized the plan and patiently waited.

Zheng Junpeng continued pushing up the orders until they reached 1.95.

"Don't push too fast. Let's wait and see," Chen Wei advised.

Zheng Junpeng nodded, pausing to allow the chart to form a stable pattern. After about five or six minutes, the downward pressure had diminished, and the chart showed a stable platform. He then continued pushing up.

The sell orders were now at 2.05, with 200 shares at 2.10.

"Lao Chen, did you set your exit orders?" Zheng Junpeng asked.

"Yes, I placed 100 shares each at 2.05, 2.07, and 2.09," Chen Wei replied. The order at 2.05 was already partially filled.

"Good, I'll place some short orders at 2.09," Zheng Junpeng said.

Zhou Yi, overhearing, also placed short orders at 2.09.

Zheng Junpeng pushed the orders up to 2.03.

Chen Wei's exit orders at 2.05 and 2.07 were fully executed, and the 2.09 order was partially filled.

Zheng Junpeng then pushed an order at 2.05, which was immediately filled.

"Looks like it's topped out. There's hidden selling pressure above," Zheng Junpeng noted.

"Yeah, it was similar at 1.85. Once the sell pressure kicks in, we can short it again," Chen Wei agreed, moving his remaining exit order to 2.04 to close out his remaining shares quickly.

With over 500 electronic buy orders at 2.03, nobody could front-run Chen Wei's 2.04 order. His remaining shares were soon sold.

This trade earned Chen Wei about $5,900, adding to the $800 from the earlier short position, totaling $6,700 for the day.

After closing his long position, Chen Wei immediately placed a 50-share short order at 2.04, unsure if the sell orders would reappear, so he didn't go too heavy.

"Should we short ahead of time?" Zheng Junpeng asked.

"Isn't it too early? If the sell orders don't appear, stopping at 2.10 would be painful," Zhou Yi countered.

Chen Wei quietly continued placing his short orders.

"You're nuts!" Zhou Yi exclaimed, seeing Chen Wei already shorting at 2.04.

"I've got my orders in too," Zheng Junpeng added.

"You guys are crazy!" Zhou Yi was exasperated.

"If we don't short now and the buy orders suddenly disappear, it'll be hard to get in. Honestly, I'm tempted to short at 2.03," Zheng Junpeng explained.

"There are so many buy orders; they can't all disappear at once. I'll wait for the sell orders," Zhou Yi decided.

"Suit yourself, but don't cry if you can't get in later," Zheng Junpeng teased.

Zhou Yi remained confident that he could still short the stock, but then the 2.03 electronic buy orders vanished!

Zhou Yi was stunned.

Chen Wei was prepared. Unlike at 1.85, where the orders were taken out, the other electronic orders had vanished earlier. He had already set his 2.00 orders and immediately shorted when the 2.03 orders disappeared.

Due to his 50-share limit at 2.04, he only managed to short 80 shares, which was frustrating.