American regulators don't know what happened, so they spent a lot of time interviewing hedge funds of big Wall Street investment banks one by one, trying to investigate every transaction they made that day. But strangely, five years later, there is still no news. It may be hard for them to think that in a suburb of England, an ordinary town and an ordinary bedroom on the second floor, a mysterious teenager looking at ordinary people turned out to be the initiator of the whole incident. This is the hero of the story, the mysterious brother. His full name is Nevada since, which is too difficult to read. Just call him Brother Mystery.
This mysterious brother who spent all day in his bedroom made a fortune, earning millions a year, and accidentally drove American stocks crazy. Many young people regard him as an idol. Does it feel like talking about a movie? How on earth does he play? The mysterious brother is an Indian-born Englishman. 1979, he was born in a small town on the outskirts of London. His name is House. This small town is the birthplace of the American stock market crash after 3 1 year. When mysterious brother graduated from university, he saw an advertisement that said that he was very good under pressure, which meant that the company must have good ability to withstand pressure if it wants to recruit futures traders. At first glance, it doesn't look like a job advertisement for a big company. Brother Mystery went to apply. In fact, there are many such trading companies in new york and London, none of which are very large. Their model is also easy to understand. Is that the company takes out the money and then lets you make a deal. You can speculate in stocks, options, commodities, and basically do whatever you want. If you make money, you can share it with the company, 50/50. I have to say that this mysterious brother is really a genius, with quick thinking, strong logical thinking and very fast hand speed.
The mysterious little brother who just graduated, he doesn't need to be taught or a team. He just sits there all day, thinking about how to make money, and then makes his own deal. Unexpectedly, he became the most profitable person in the company, earning tens of thousands or even hundreds of thousands of pounds a day. In fact, like many traders now, in addition to going to the toilet, they can hold the mouse at the computer for seven or eight hours and then make a lot of money.
For example, during the financial crisis in 2008, Lehman Brothers had already closed down. At that time, the global assets plummeted, and the mysterious brother went through a thorough analysis. Of course, he also has his intuition that the US government will rescue the market. Then he put all the money in and added the maximum leverage. You said it was a coincidence that he bought it on Friday. On Monday, the US government announced a $700 billion rescue plan, which immediately made a profit. His assets also soared from 2 million to150 thousand. Don't forget, at that time he was just a teenager in his twenties without any formal training. What do you think of him?
50% of such a powerful person will be given to you by the company. Do you do it or not? So when he figured it out, he immediately left and started his own work. Of course, he doesn't have any big hedge funds. He's hiring people. He wants to rent a particularly high office by the Thames. People moved back to their own small town house, a bit like a particularly powerful hacker. His own head, mainframe, monitor and, of course, some mysterious equipment are all ready in his room. Then every day, when the curtains are pulled, for seven or eight hours a day, he takes his big headphones and makes those mysterious transactions there. For example, at noon, his mother shouted downstairs: It's time for lunch! Then when the computer is a little faster, I will go down to eat and come up to make a little money after dinner.
Their small building is worth 300 thousand pounds, but you know that mysterious brother often earns 1 million pounds a day for him. What kind of experience do you think it is to earn a suite a day? But without buying a house, people still live with his parents. Trading in that hut, for example, some gamblers are radical, but Brother Mystery also has some Indian ancestry and may be conservative. When he makes money, he will take it out, but if you want to put it in Britain, you need to pay about 30% to 40% capital gains tax. He will transfer the money he earned overseas through a series of complicated cross-border operations, thus successfully avoiding taxes and making some investments overseas. In his view, the whole transaction is like playing a game, and all he turns in is game money. For people who like to play games, the more money, the better. They never think about how to improve their lives or how to spend the money.
Speaking of which, you must be curious. How did you make so much money? Let's talk about the operation of mysterious brother in detail. Of course, there are legal and illegal ones here. The main way to make money is through illegal means. Any financial product has become a market in the financial market because some people are willing to buy and others are willing to sell. For example, if someone is willing to buy it, I am willing to spend 100 yuan, some people are willing to spend 99, and some people are willing to spend 98. The same is true of sales. Generally speaking, selling is definitely higher than buying. What you sell must be more expensive to buy. So some people are willing to sell at 10 1, others at 102, 103 104, etc. For example, 100 yuan, if you are in a hurry to buy now, then you can quote 10 1? You can buy them directly. Then someone wants to buy it on 103, which is ok, but not necessary. Generally speaking, more professional trading software can not only see those prices, but also see the order quantity. In other words, how many orders are willing to buy at 100 and sell at 99? That's the point. We can use these data to understand the relationship between supply and demand in this market, that is, how many people want to buy and how many people want to sell, right? At this time, if there are many people who want to buy, there is a high probability that the price will go up and there are many people who want to sell, indicating that this market is bearish. This is the mysterious brother. The core principle of his making money is that I can scare you with a lot of orders, but I don't make a deal, thus pushing the stock price in the direction you want to see. For example, in the example just now, mysterious brother 10 1 bought it first, and then I made a lot of orders to try to push up the price in this market. When there are so many people in the market who want to buy it, it must be promising, right? So I have to buy quickly, the bills I sell will increase, and I will start to withdraw and push it up until this price, for example, increases to 1. Simply put, it is arbitrage through the project market. Do you think this principle is quite simple? This method is to cheat the transaction. In fact, it is quite common in the secondary market. As long as your capital is large enough, you can influence the market and push it in the direction you want. Don't you think this is a bit equal to operating the market? So this kind of operation is definitely not allowed now. If you do business on Wall Street, you will be told what you can and can't do, what is illegal and what is going to jail as soon as you go in.
When we talked about the mysterious brother, he controlled the market price in this way. At first, it was still booming before 2006. Later, many hedge funds operating high-frequency transactions came in, which greatly squeezed the profit space of Mystery Brother. Mysterious brother, of course, can't be so at a loss. Hire someone to start writing programs and algorithms by himself. This is even worse at once. With these algorithms, his trading volume or virtual order volume also increased exponentially. Once in S&P stock index futures, his daily order volume reached 7% of the whole market.
Time came to May 6th, 20 10, the day when the US stock market crashed. There were some rumors in the European Central Bank that morning, and then the market fluctuated greatly. Traders must hope that there will be big fluctuations, and there will be opportunities to make money if there are fluctuations. If the stock price in the market does not move, what money will be made? Brother Mystery carries out his usual strategy, placing orders, canceling orders, placing orders and canceling orders. On this day, the order amount reached 200 million US dollars, and the number of orders was revised 19000 times. That is to say, all the mail on the market that day, that is, 1/3 of stock index futures, was mysteriously cut off, so he manipulated the market like this, plus occasional successful transactions. Then at 0 1:40 pm new york time, he turned off the computer and stopped the operation. The next thing is the same as what we said at the beginning. The US stock market crashed, and everyone was in the collective circle.
You don't know what will happen if the market plummets. In this case, many professional institutions will definitely reduce their positions, and those companies with high-frequency trading will even clear their positions at all costs, which will definitely increase market volatility. Then when everyone came to their senses and found that nothing had happened, the market rebounded again, which caused our magical scene at first. Five years after The Flash, the mysterious brother became more and more slippery, earning a total of $70 million in his small bedroom. At that time, he didn't even know that he had committed such a big thing. Until 20 15, one day, a group of big shots from the FBI came to his door and knocked on his door. At this time, the mysterious brother's father opened the door, and the mysterious brother came down wearing a big T-shirt and big shorts. At that time, when the two sides met, both sides froze.
The FBI may think: What the hell is this? This guy really brought down the American stock market? Brother mystery is also at a loss. What is wrong with me? What have I done to you? Neighbors are confused, too, multimillionaire. I saw my little brother buy a special set meal at McDonald's yesterday. The American government accused him of 22 crimes, and this mysterious brother will face up to 380 years in prison. At the beginning of this matter, the court awarded $5 million in bail, which means you can go out first by paying $5 million. People may want you to say that this young man has earned tens of millions by himself. If it's 5 million, it's better to get out easily.
Didn't you say that Brother Mystery took the money to invest abroad? When he needed money, he began to call those investment companies. Unexpectedly, they are a group of liars, and he doesn't want a penny. You said that such a genius engaged in such complicated tax avoidance measures, and finally all the money was cheated by a liar. More interestingly, the court was helpless to see this situation. I thought I could get $5 million, but I finally had to reduce my bail to ￡ 50,000. In this way, the parents mortgaged their own small building and took money to bail their son.
If we think about it from the perspective of the US regulatory authorities and the US Federal Bureau of Investigation, they are really helpless. Originally, I wanted to investigate this big case, bring out several big cases that shocked the century predators, and then punish several Wall Street investment banks hedge funds to get him hundreds of millions. As a result, I didn't expect that I couldn't even get 5 million from such a little boy who couldn't go out and didn't wear headphones. What's more, this mysterious brother can be said to be a lonely genius who doesn't understand the world. He is not good at taking care of himself in all aspects, but he can earn game money. During the trial, it was also found that the mysterious brother was actually an autistic, and all his money was cheated, which was quite pitiful. What's the use of keeping such a little brother in prison for 380 years?
In fact, there are different opinions about the cause of this flash collapse. Some people say this is the butterfly effect. You can't blame Brother Mystery. Some people say Brother Mystery is a scapegoat. But the mysterious brother is really the only one who was arrested for this.
Time came to 2020 1 month, and the court's sentencing came down. Brother Mystery was punished symbolically once and grounded at home for one year, which ended. As we all know, a month later, the epidemic struck, and people all over the world were forced to stay at home because of the epidemic.
After the stock market crash, 70 million game coins were recovered, arrested, investigated and imprisoned. The mysterious brother is still in his house, playing games and football with his friends every week, and buying special packages from McDonald's every week. We just don't know. What is Brother Mystery doing in his mysterious bedroom?