Rural “share genius” with only 3 years of schooling becomes a millionaire through stockmarket
Most people in the U.S.A. are still feeling the pains of their 401k being cut in half. China is no exception with its stock markets chopped 50% from its highs (though it has outperformed the USA lately).
Below is a translation from ChinaNewsWrap.com of a Chinese report from Sohu.com. After reading it, my thought was: could this be a pre-quel to the 1987 film, “Wall Street“? More seriously, rural kids of China, follow Xie Xianqing’s persistence and hard work and lots of doors will be opened to you!
The Sohu news portal has a headline news story about Xie Xianqing, a peasant from Sichuan province with only 3 years of formal education, who has made and lost several fortunes by playing the Chinese stock market.
“He purchased shares in Zhongjin Gold Corporation(中金黄金) for 66 yuan. He continued purchasing them until they were over 90 yuan in price. He patiently held them until they reached more than 150 yuan (double the purchasing price) before selling them to earn an ample profit. He purchased shares in Dalong Real-estate (大龙地产) at 12 yuan, and sold them for 17 yuan, earning a profit of over 40% in the space of only 7 trading days. He has purchased shares in Dongbei Securities, Yu Development, and other companies. This is the current record of rural ’share genius’ Xie Xianqing (谢贤清). In 1991, Xie Xianqing invested 60,00 yuan in the Shenzhen Stock Exchange, and within the space of a year his assets reached 1 million yuan. By 1993, his assets exceeded 10 million yuan. In the over ten years since then, he has invested in numerous markets, including futures and foreign currency, losing and regaining tens of millions of yuan. In his life he has already made and lost fortunes on several occasions.”
“Xie Xianqing, recalling his start as a share investor, told the reporter that ‘in 1991, bearing a hempen sack of money on my back, I rushed to the Shenzhen Stock Excahnge and said that I wanted to buy some shares.’”
“Prior to this, Xie Xianqing, who has only 3 years of formal schooling, had worked on a farm planting crops, and as a contract worker in an iron mine. He had worked as the boss of a small printing company, and came to learn about shares by subscribing to the ‘Shenzhen Special Zone Report’ (深圳特区报). After this, defying the doubts of those around him, he rushed to Shenzhen to invest in shares. After only a year his assets exceeded 1 million yuan.”
“In 1993, taking the 1 million yuan in assets that he had earned on the Shenzhen stock market, Xie xianqing returned to Chengdu were he began to trade in legal-person shares on the Hongmiaozi over-the-counter market. By the end of that year, his assets exceeded 10 million yuan. ‘When I later reflected upon that period, I realized why I had earned that much money. One reason was because I possess both foresight and courage. The second reason is that I enjoyed good luck.”
“In 1994, China established its domestic futures market, and Xie Xianqing was one of the first to invest. He had fallen out of favour with the god of fortune, however. As a result of trading in steel and rubber futures, he was brought to the brink of total bankruptcy and ruin. ‘I lost over 2 million yuan by trading in Hainan rubber futures, and a further 2 million yuan on steel securities. I lost several hundred million yuan through speculation on government bond futures. Within the space of only one month, I had lost over 8 million yuan on the futures market. Not only did I eventually lose all of my family assets, I also took on over 3 million yuan in debts.”
“By 1997, Xie Xianqing, who had lost all of his family assets, finally realized over a long period of rumination that the most important thing for success in the stockmarket is knowledge. He began a period of intensive study by means of whatever channels were available to him. Xie, with only three years of primary school education, began to study the different types of technical indicators for shares. At the very beginning, he was aware of what even positive and negative closing lines are. He made the arduous effort to memorize all of these technical meanings, and to further study their significance. Xie Xianqing, who is unable to even write many characters correctly, sat in front of the computer every day for over ten hours, studying technical charts for the analysis of shares.”
“At the same time he also travelled to Shenzhen, Beijing, Shanghai, Jinhua and other areas, to ask for instruction from stockmarket experts, ‘I worked hard to acquire meetings with stockmarket experts, and spend I don’t know how much money on travelling fees.’ Once he located these individuals, were they willing to teach him? ‘Xie Xianqing tells the reporter that ‘my greatest advantage is my patience. I would continue to give them phone calls, and very sincerely invite them to drink tea or share a meal. They were eventually all willing to teach me one or two tricks.”
“Xie Xianqing’s limited schooling was a source of surprise for many people. He learnt of a renowned futures expert, but was unable to obtain a meeting with him. Xie then worked for six months in a company opened by a friend of this individual, and finally managed to obtain a meeting with him by these means. ‘We have now become very good friends, and he has taught me a number of things which have brought me considerable benefit.’ At present, Xie Xianqing, who is constantly learning, has on the one hand obtained knowledge from the lesson of his own failures, and on the other hand continuously studies the best techniques of other stockmarket experts. He has also enlisted the help of computer experts to convert his own concepts into software programs.”
“After being involved with the stockmarket and futures market for over 10 years, Xie Xianqing has already become a thorough member of the ‘technical school.’ Xie Xianqing believes that if you want to earn money, you must use large amounts of capital to pursue long-term trends, and small amounts of capital for short-term trades. ‘The market is constantly changing, and investors most learn to constantly change along with it, if they want to be able to obtain an undefeatable position. The shifts on the A share market are quite large, and investors cannot blindly cling to shares, but must engage in short-term trades.”
Title of original news story in Chinese: “农民拜师学炒股资产千万，腰缠万贯也曾倾家荡产”
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