Vol. 1 - Ch. 20 - Setting the Stage

Name:I Can See Big Data Author:笔之海
Chapter 20: Setting The StageCurious, Li Han decided to check out the stock exchange after leaving the gym and taking a shower. As he walked in, he noticed a group of people huddled together, deep in animated discussion.

The moment they spotted Li Han, the group swarmed around him, looking like they were ready to interrogate him. "It's him, it's him!" they exclaimed. "Young man, how did you know the stock would tank? Did you have inside info? Why didn't you share it?"

Li Han kept his cool, recognizing this as an opportunity. If he could win over these savvy investors, he could potentially recommend stocks to them.

But recommending stocks was no walk in the park. Even if you correctly suggest a profitable stock, not everyone ends up winning. Stocks are unpredictable and subject to rapid changes. For instance, while Li Han could sell at the peak price, individual investors might sell at the lowest, triggering losses. The market is volatile; some might cash out early while others hang on, causing them to miss out. Recommending stocks is often a thankless task.

Li Han knew it wasn't the right moment to make his move; he needed a more solid track record to back himself up. 'Patience, patience... there's time,' he reminded himself internally.

"Inside information? If you'd taken the time to do some online research, you could've picked up on some hints. The stock's been rising, sure, but that doesn't mean you should ignore other signs," Li Han answered coolly.

His response set off a flurry of animated chatter among the group. "I knew something was off. The stock's been on an upswing for so long, yet there's still plenty of trading volume. Clearly, some shareholders are quietly selling off!" "Easy to say that now, isn't it? Who could've known?" "Enough, let's focus on selling our shares ASAP!" "Sell to whom? Who'd want to buy in this market?""

Li Han felt a twinge of sympathy for the group, but he knew that this was the nature of the stock market: it's a game of risk and reward. Anyone involved had to be ready for both ups and downs.

The catch with stocks is that their value depends on whether there's demand. Take this specific stock, for instance. Negative news about the company had come out, making it almost inevitable that its stock price would plummet, if not crash entirely. In such a situation, who in their right mind would buy a stock that's clearly on the decline?

If nothing changes to improve the situation, the company might even be delisted or go bankrupt, rendering the stock worthless.

Ignoring Li Han, the group continued their heated discussion. Finally, one seasoned investor, who had previously endorsed this stock, tried to reassure everyone. "Don't panic. In times like this, the company's board will likely buy back shares to stabilize the market. The Alzheimer's drug they're developing has promise. Once they sort out the issues, the stock price is bound to recover. Now's the time to double down and buy more; it'll go back up..."

"Buy more shares? Are you serious? Haven't you seen the news? Major shareholders are bailing!" "Right! You want to buy? I'll sell you my two thousand shares!" "And I'll add my thousand, at the current rate!"

The crowd was in an uproar, leaving the seasoned investor visibly uncomfortable. Li Han felt a pang of sympathy for the man; the situation reminded him of how his father looked after losing a hundred thousand yuan in the stock market.

Using 100 big data points, Li Han took a closer look at this stock's projected performance over the next two months. "Hmm, interesting..." he mused to himself. Despite its continued decline over the next month, the stock appeared to rebound afterward. It seemed like a good idea to buy at its lowest point and then ride the upswing for a profit.

Of course, he didn't expect anyone in the current crowd to take his word for it.

"Uncle, if you're hesitant about selling now, just wait a month. The stock should rebound," Li Han suggested. "If you have the funds, consider buying more when the price dips to around 7.5 yuan. You could turn a profit."

"What would someone like you know about the stock market?" The older man was both irritated and distressed.

"Actually, at its core, the stock market is about investing in companies with potential. All the market manipulation techniques are just tricks to deceive traders," Li Han explained calmly.

Indeed, the stock market is rife with manipulation, but those tactics exploit the psychology and mechanics of trading. Strip away all the smoke and mirrors, and you're left with the essence of stock trading: investing in companies with solid prospects.

"As long as the company has potential, its stock will rise. Regardless of whatever manipulation goes on behind the scenes," Li Han continued. "I may not understand all the market tricks, but I'm confident in my ability to assess a company's potential. Want to watch and see?"

After a moment's hesitation, the older man grumbled and vanished into the crowd.

Li Han felt he was one step closer to his ultimate goal. Gaining the trust of this savvy investor would likely lead to trust from others, allowing him to trade stock tips for valuable data points. With three different avenues for acquiring data points, he could afford to quit his day job---though he hoped it wouldn't come to that. He had been at the car dealership for several years and felt some connection to it.

"Actually, it seems like I'm not that attached," Li Han scratched his head and muttered to himself, "Time to head home."

The following day, Baizhe Cake Shop rolled out three new products. Because they were new, they hadn't generated much buzz. Unfazed, Li Han decided to promote them through a delivery app, spending 500 yuan per day---a cost he considered reasonable.

The promotional expense ate into the profits, but after a few days, Li Han managed to accumulate a thousand yuan, which translated to an additional big data point. While the amount was modest, it validated his approach as viable.

He learned from Li Jia that Wang Man would be running the cake shop that day, so he planned an afternoon visit to create an opportunity for some one-on-one time.

"What should I bring her, though?" Li Han mused, furrowing his brow. He decided to check Wang Man's food preferences in her data profile, hoping it would provide some insight into what she'd enjoy.

According to the data, Wang Man cooked 73% of her meals, and the remaining 27% didn't show a particular pattern. The only detail that caught his eye was a 5% frequency of ordering from a specific fast-food chain.

This tidbit piqued his interest. A 5% frequency suggested she didn't go there often, but did indulge occasionally. Given the cost of living in Beichang City, McDonald's wasn't exactly on the cheap end of dining options. It seemed unlikely she was choosing it to save money, but more as an occasional treat.

"Interesting... Let's give this a shot," Li Han chuckled softly to himself, intrigued by the idea.

At 5:30 p.m., Li Han strolled into the cake shop, a large bag from the fast-food chain in hand. "Your takeaway has arrived," he announced.

Wang Man was in the midst of tallying the remaining cakes when she heard him. Her eyes lit up as they landed on the bag he was carrying.

"I thought you might not have had dinner yet," Li Han said, unpacking the bag. "There's a fast-food place nearby, so I picked up some food on my way here."

"In that case, I won't hold back," Wang Man replied, coming over to inspect the goodies.

As Li Han pulled out an assortment of snacks, Wang Man's smile grew wider. She snatched up a chicken wing, took a bite, and her face beamed with delight. "Mmm---so good!"

"Glad you like it," Li Han said, suppressing a chuckle. "Eat up. I spent over a hundred yuan on all this."

"You think I can't finish it all?" Wang Man teased, her eyes twinkling with mischief.

"Really? With your petite frame?" Li Han eyed her sceptically. She couldn't weigh more than 45 kilograms.

Wang Man elbowed him playfully in the waist. "Petite frame? Is that what you're calling it?" Sᴇaʀᴄh the N0vᴇlFire(.)nᴇt website on Gøøglᴇ to access chapters of nøvels early and in the highest quality.

Li Han winced, rubbing the spot where she'd elbowed him, and muttered, "Yeah, there's no mistaking it's you..."