Xie Yanxi has become a full-time investor in stock market investments, using her mathematics degree to her advantage. (Photo : Chongqing Morning Post/Gao Ke)
While the Chinese stock market has been sluggish and volatile in recent months, Xie Yanxi, a 27-year-old graduate of mathematics, has found success investing in stocks using her know-how and business sense, according to a report by WomenofChina.cn, the internet news website of the All-China Women's Federation (ACWF).
Xie graduated with a mathematics degree from Chongqing University of Technology. While in college, she engaged in several businesses, such as selling cosmetics, operating laundry rooms and sub-letting her apartment.
"Almost all the girls came to me if they wanted to buy cosmetics," Xie recalled.
Xie showcased her aptitude for investment when she noticed her district had cheap shop rentals, despite its lively setting. She leased a shop at 3,000 yuan per month, which she was able to sub-let for 6,000 yuan per month.
By the time Xie graduated, she had around 200,000 yuan saved up. This is what she used for entry to the stock market.
"I found stock investment interesting. The first time, I bought 40,000 yuan of shares on the suggestion of others and they went up by 10 percent that day," said Xie.
The next day, Xie quit her job and invested her entire savings of 200,000 yuan in the stock market.
"As first, I relied on tips from others, which were not trustworthy as I later found out. So I traded with my own senses. In a year, the original capital reduced to 30,000 yuan," said Xie.
Xie decided to invest time in reading books on stock investment and making stock analysis, which gave her the tools to pull out when the market was at its peak.
When asked about her secret to stock market success, Xie points to Fibonacci Numbers, the sequence of numbers beginning with 1, 1, 2, 3, 5, 8, 13, 21. "It sounds complicated, but is easy to apply," she said.
"When the market plummets, I would buy in for 20 percent of my positions on the third day. If it continues to drop, I would add 30 percent of my positions on the fifth day. At that time, the probability for a rebound is 50 percent. And if the stock keeps at falling on the eighth day, I would buy in with all my remaining positions. When it rebounds, I could earn 15 to 20 percent in three days," Xie explained.
Xie also stresses how investing in stocks is far from gambling.
"If the odds for rise are 50 percent, I won't buy in. If the odds for fall are 50 percent, I will sell out," Xie added.
