Stock Trading

In today’s era of the global digital wave, we’ve become accustomed to instant transfers and near-instant payments. Therefore, many people are confused: why, after clicking “sell” on a stock, does my funds not immediately clear in full and become available, but instead takes one or two business days? This is precisely a crucial and historically significant concept within traditional stock trading – settlement.

prompt: Why does traditional stock trading require the concept of settlement?

Reflecting on years of stock trading experiences, although I didn’t make a fortune, I also didn’t lose too much. The biggest issue was an unreasonable allocation of funds and an unstable mindset. Currently, my primary source of income is work, earning a fixed salary each day through part-time jobs, and my ability to withstand financial fluctuations remains at the level of bonds and bank deposits. However, people are inherently greedy; if you buy too little, even when prices rise, you won’t make money; and if you buy too much, you will lose money. At this point, maintaining a stable mindset is particularly important, as it can help us keep our wealth afloat.

• The hammer is falling.
• Following the surge of short videos, investment advisory services are reportedly entering a fast lane.
• In late September, after a period of intense activity in the A-share market, Douyin (TikTok) recommendations for stocks garnered attention from various parties.
• Numerous financial commentators have risen to prominence on Douyin, indirectly causing some volatility in capital markets.
• Behind these rapidly rising financial commentators lies a significant force: third-party investment advisory service companies.
• It’s understood that many third-party advisory firms operate multiple accounts on short video platforms, using content distribution (投流) to attract users to watch investment teaching videos and boost enthusiasm for purchasing corresponding products.
• There are even rumors that one third-party advisory firm achieved revenue of 10 billion yuan in October alone, exceeding its first-half earnings.
• However, “good times” are facing more uncertainties.
• Since November, multiple departments have issued notices requiring securities service institutions to strengthen the compliance management of self-media accounts.
• On November 15th, Futu Securities (300033.SZ) announced that a subsidiary was penalized by the China Securities Regulatory Commission for engaging in suggestive stock recommendations through livestreaming.
• This may be signaling a stricter regulatory environment.
• The expansion of third-party investment advisory service firms like Fangyuan Intelligence Investment (9636.HK) is likely to face greater pressure.

Close Monitoring by Regulators

The rise of short video platforms like Douyin (TikTok) has amplified emotional voices and indirectly impacted trading behavior.