Chapter 17
Chapter 17
As soon as I clicked on the Samjin Semichem stock, thinking about buying it, the scent hit me.
A few days ago, it wasn’t this strong.
I couldn’t understand why the scent had intensified by several times.
Could a scent really get this strong?
What could be the reason?
I thought hard, but nothing came to mind.
The only change had been that securities gossip about a cash shortage had surfaced.
If the gossip was true, it meant the company was facing a cash shortage.
But how could a cash shortage push the stock price up?
I really couldn’t understand.
“Phew…”
A sigh escaped me.
“Why? Deoksu? Is something wrong?”
“Ah, nothing. And please, feel free to speak casually. You can just call me Deoksu.”
“Oh? Okay. Deoksu, then… Deoksu, what is it?”
“It’s just… there’s something I can’t understand.”
“What is it?”
“Can the stock price of a company in financial trouble suddenly rise?”
“Hm, that’s difficult, but not impossible. Sometimes, sales can surge. You see it occasionally in KOSDAQ. For example, a pharmaceutical company struggling with cash flow could succeed in developing a new drug, or a newly released product could become a hit, and sales could spike.”
A surge in sales?
For a semiconductor materials company like Samjin Semichem, sales would only spike if a new product was released and it sold really well.
A new product…
This kind of information is confidential, so it’s not easy to know.
Also, the company’s main clients are semiconductor firms like Samhyun Electronics and KS Semiconductor, and secondary battery manufacturers. Unlike consumer goods, sales don’t spike suddenly. Even if they increase, it’s gradual.
Let’s put this aside for now.
“Any other possibilities?”
“They could issue bonds, but for small and medium companies, even if they issue bonds, it’s hard for the market to absorb them. So usually, they issue convertible bonds instead.”
“Convertible bonds are bonds that can later be converted into stock, right?”
“Exactly.”
A convertible bond is a bond that can later be converted into stock. Investors prefer them because they can choose whichever option is more favorable.
I recalled what I had learned before.
“Normally, bond interest is over three percent annually, and the conversion price of a convertible bond is often lower than the current stock price. If the stock price doesn’t crash and stays steady, you can gain at least tens of percent profit.”
“Oh, Deoksu, you’re good.”
The team leader praised me after hearing what I said.
“Ah, this is just basic. I’ve been studying stocks all night these days.”
“Really? I was worried you didn’t know much about finance, but now it seems you’ve got the basics down.”
“Yes, but I still have a lot to learn.”
“Anyway, good job.”
“Excluding a surge in sales, the most realistic way to raise new funds is through convertible bonds.”
“That’s right. But buying convertible bonds isn’t easy. Usually, they decide on the buyer first, then issue them.”
“Then I’d need to negotiate with the company beforehand.”
The team leader nodded.
“There are cases where convertible bonds from a good company hit big. The capital influx normalizes the company, and the stock price rises sharply because of it.”
I thought about wanting to buy Samjin Semichem’s convertible bonds.
Of course, since they haven’t been issued yet, it’s just a hypothetical idea.
Then it happened.
While talking with the team leader, I could smell that intense scent from the stock again.
“What is this?”
Why would convertible bonds from Samjin Semichem give off a scent?
A scent means a gain for me.
Compared to when I was younger, I could now perceive the details of the scent more clearly, but the core—signifying a profit—hadn’t changed.
That meant if I bought Samjin Semichem’s convertible bonds, I’d make a big gain.
And issuing convertible bonds meant…
“The company’s cash flow is seriously bad right now.”
“I really want to buy them. Convertible bonds.”
“Hahaha. You’d need at least twenty billion won.”
“...What?”
I was startled by how much it would take to buy them.
“Any other questions?”
“No, thank you. That was a big help, team leader.”
“Alright.”
I turned back to the monitor.
Convertible bonds were difficult.
No, with my current situation, it was impossible.
But stock investment was possible.
Samjin Semichem stock.
As soon as I thought that, the strong scent returned.
“This is definitely doable…”
But then, why is the stock falling??
Because of the cash shortage gossip.
[Samjin Semichem Current Price 4,700 won.]
It had dropped nine percent from when I bought it.
Looking at the stock made my heart sink.
I couldn’t add more money.
If losses exceeded ten percent, forced liquidation would occur.
My team leader allowed concentrated investment, but only with strict risk management conditions.
“Damn.”
I muttered under my breath.
Then it happened.
The stock dropped another fifty won, reaching a 9.5 percent decline.
If it fell once more, it was over.
It will rise.
It has to rise.
I stared at the monitor, eyes sharp.
At that moment, a massive buy order came in.
Two hundred thousand shares. Nearly one billion won.
The drop slowed dramatically.
My losses recovered to minus five percent.
“Phew… saved.”
I leaned back fully in my chair, sighing in relief.
Then the team leader called me.
“Deoksu!”
“Yes?”
“That was dangerous just now. You know that, right?”
Apparently, the team leader was monitoring my account in real time for risk management.
“I didn’t exceed the limit.”
“You were lucky. That last huge buy saved you. Make sure to thank that person.”
“Yes.”
I silently thanked the unknown person a thousand times over.
“If that order hadn’t come…”
The team leader’s face showed relief.
After finishing, the team leader casually said,
“We’ll have a meeting after the market closes today.”
As today’s stock market closed, the silent battlefield ended.
As always, emotions ran high on the seventh floor.
Alongside sighs, there were smiles of joy.
Our team performed well.
“Today’s profits are decent. I did okay, and you, Choi, did well too. Looks like your instincts are coming back.”
“Not yet, still lacking.”
“Don’t feel too pressured, just stay comfortable.”
“Yes, thank you.”
Choi achieved more than 0.5 percent profit today.
Recently, the team leader had praised him, and the next day, he recorded between 0.5 and 1 percent profit.
Less than one percent may seem small, but not for prop traders.
A prop trader must earn at least twenty percent of the funds they manage annually.
Twenty percent is basic, thirty percent is considered excellent.
We don’t aim for big wins at once; we accumulate small gains daily to build a mountain.
Daily target: 0.2 percent. Monthly: 2 percent. For us, 0.5 percent a day is significant.
Lost in thought, a sudden jolt hit the back of my head.
Then.
“Haa…”
I heard the team leader sigh deeply.
“Deoksu, maybe you should wrap things up now?”
It may seem stubborn to others, but I trusted my ability.
As long as I could smell the strong scent, the stock would rise.
I didn’t know when, but it would rise.
Hold on!
“No. I’ll wait. It will definitely rise. It’s not over until it’s over.”
“If you keep that up, your life could end too. You don’t want to end up in the Han River, do you?”
The team leader’s cold words made me flinch.
“...”
I couldn’t reply.
“Alright. Let’s take ten minutes, then start the meeting.”
“Team leader, if there’s meeting material, please send it. I’ll print it.”
“No, it’s okay.”
“Then I’ll get coffee ready.”
“Good.”
I went downstairs and bought coffee.
The team leader and Choi were already seated at the round table.
I handed Choi an espresso campagna and the team leader a vanilla latte, then took my seat.
“Thanks.”
The team leader sipped the coffee.
“Ah, good… alright, let’s start the meeting.”
“Yes.”
“Today’s agenda is one item: operating funds.”
“Operating funds? Isn’t that already decided?”
“New funds were allocated yesterday.”
“How much?”
“Five hundred billion won.”
I was shocked.
Choi also asked, surprised,
“Five hundred billion? Why all of a sudden?”
The team leader shrugged, as if he didn’t know.
“I don’t know the reason, but you take what they give. Other teams are desperate to get it.”
“That may be, but…”
“So, Choi, please handle some of the funds.”
The team leader requested Choi.
Choi slightly avoided the team leader’s gaze.
“Sorry, if you allocated them, I could, but honestly, I don’t have confidence. I can only manage up to a hundred billion for now. I want to work with the current funds only.”
I thought Choi would be happy, but he surprisingly refused.
“Before, you managed over two trillion won.”
Two trillion?
He must have been really successful back then.
“Your instincts are coming back, maybe add a bit more?”
“Not yet. Sorry.”
Choi’s repeated refusal left the team leader in a dilemma. The size of the funds was an issue.
The team leader currently managed 39.5 billion. Adding 50 billion would total 89.5 billion.
It’s harder to earn twenty percent with 100 million than with ten million.
Large-cap stocks are slow to rise, which makes investing huge amounts tricky.
Korean stock market is too small for managing nearly ninety billion efficiently.
Investing in US stocks is possible but also difficult.
Long-term investments by individual investors don’t matter much, but prop traders need to decide within a month.
Information is crucial. Trading US stocks from Korea involves serious information gaps.
Futures and options are mostly small, only used as hedges for risk management.
“Hm… then nothing we can do. We’ll reconsider the new fund allocation.”
The team leader glanced at me, thinking briefly, then looked away.
“Then, let’s wrap up. If anyone has tasks, finish them, and go home early today.”
“Team leader.”
I called the team leader as he tried to leave.
“Yes?”
“Will you not allocate funds to me?”
“??”
The team leader was startled and switched to formal speech.
“Deoksu, you haven’t generated actual performance yet, so giving you a large sum is risky. It’s not the time yet. After gaining more experience, I’ll allocate funds.”
“If that’s the case, I understand, but I’d like to receive as much as possible.”
The team leader looked baffled.
“Do you know your current profit rate?”
“Yes. But this is only temporary loss.”
I spoke boldly.
If I received the allocation, I could make a huge gain. If not, nothing lost.
“How much do you want? Tell me.”
How much should I ask for?
Regular employees: 1 to 3 billion. Manager-level: 5 to 10 billion. More depends on individual ability.
Some manage 50 billion like the team leader, others barely 10 billion.
Without hesitation, I stated what I wanted.
“Five hundred billion.”
“What? Deoksu! Are you joking?”
“No.”
“Do you think a newcomer should be allocated 500 billion?”
“No, it’s unreasonable.”
“Then why say it?”
“Even for an intern, generating 43,000 percent profit seems impossible.”
“What? That was a simulation.”
“Simulation, but I treated it like real trading. You said practice should be like the real thing.”
The team leader’s eyes widened.
“Ah, well, that’s…”
Flustered, he struggled for words.
Choi spoke up beside him.
“I think allocating a large sum to Deoksu isn’t a bad idea.”
“What? Even Choi thinks so?”
“It’s the company’s intention. Allocating five hundred billion suddenly is probably because of Deoksu, not because of us.”
The team leader couldn’t deny it.
“When a company usually cautiously allocates funds, giving generously means we should align with that.”
“But five hundred billion? If we suffer big losses?”
“That’s… my responsibility.”
I answered.
Choi nodded.
“You take responsibility alone? I’m taking responsibility too. And did you two coordinate? Why are you so in sync?”
“No, but Deoksu’s instincts are the best right now. This won’t last, but when the tide rises, you have to row.”
“Choi, you believe Deoksu will succeed? Even now, he’s in the red?”
“Yes, it seems irrational, but my instincts say it makes sense.”
“Haa, really…”
The team leader shook his head in disbelief.
“If five hundred billion—or any funds—are allocated, where will you invest? Got a plan?”
Without hesitation, I replied,
“Samjin Semichem.”
“What? Samjin? Deoksu!”
The team leader looked shocked.
“Are you joking? Samjin Semichem? That’s where you’re losing money now. Are you saying you’ll double down with five hundred billion? Absolutely not. And just now, if it weren’t for me…”
If not for you?
“Excuse me? Just now?”
The team leader’s eyes trembled like an earthquake.
“Oh, no, I misspoke. Anyway, no. Not ever. Under any circumstances, never. Understand??”
“I’m not joking. I have my reasons.”
“No matter the reason, it’s impossible.”
Then Choi, who had been thinking quietly beside us, spoke.
“Team leader, let’s at least hear the reasons. It can’t hurt to listen.”
He was senior by age and experience, having been through it all in Yeouido. Even the team leader couldn’t easily dismiss him.
The team leader took a deep breath, calming his anger.
“Fine. Just explain.”
His calm, icy voice pierced my chest like a blade.
I straightened my shoulders.
With confidence, I began to explain my reasoning.