The process of attracting funds by market makers is mostly completed during the bullish candlestick period of individual stocks. At this time, the trading of individual stocks is active, and the volume can be increased, making it easier for market makers to obtain chips. So, when investors choose stocks, they need to consider both whether a stock is rising in the red market and whether its volume can be amplified.
Each main player has their own complete operating system, and when the market maker intervenes in a certain stock, they will formulate different operational strategies based on the individual stock and market conditions. However, many of the operational methods used by market makers to attract funds and build positions are universal. One of the most common fundraising methods is "intraday volatility pushing up stock prices to attract funds". When the market maker uses this method to intervene in individual stocks, the closing of the day when the market maker attracts funds generally occurs in the following situations:
1、 The stock price is rapidly rising, even reaching the limit up
2、 The stock price maintained a strong trend from the beginning of the rally until the close
3、 If the market weakens after the dealer attracts funds, the daily candlestick pattern will close with a long shadow
4、 The volatility driving up stock prices may also be a trap created by the main force to sell and lure followers to follow the trend
If the latter two situations occur, the stock price will both rise and fall, and the daily candlestick will pull out a long upper shadow line. At this point, investors should make a comprehensive judgment based on external market conditions and other technical indicators to avoid being trapped in buying. Here are three suggestions for everyone to deal with volatile market conditions.
1、 There is only one reason for lying down and not moving, selling stocks or cutting meat, which is that the main force is selling. If you judge that the stocks in your hands are not being sold by the main force, don't worry. You should judge the future trend of the target stock based on the overall form and volume price. When judging whether the main force is selling or washing up, you should refer to two points: first, if it falls, you must increase volume, and second, if the form breaks the level. If these two points are not met, you should firmly hold it. If there is no position to deal with, it is best to lie down and not move. Don't mess around blindly.
2、 Another way to cope with volatile market conditions is to choose the right time to replenish your position. If you judge that your stock is washing up, you should dare to replenish your position decisively when it falls. To replenish your position, you need to grasp two key points: one is extreme volume contraction at the end of the decline, and the other is to obtain support at key positions, which should be grasped well.
3、 Adjusting positions and exchanging shares is also important. Firstly, focus on the opportunity for bull stocks that you have previously been optimistic about to fall, as long as they receive support, you can intervene again. Secondly, increase your holdings in popular sectors, combining bull stock patterns and key uptrend points, and boldly intervene near key moving averages. When adjusting positions and exchanging shares, you must be cautious, provided that your current stocks are indeed weak and not optimistic. Secondly, you must be confident in choosing potential stocks, otherwise do not blindly switch stocks.
The stock market is volatile, and individual stock operations are indeed very difficult. However, do not panic when you see a stock decline, and do not blindly cut meat. Everyone should be clear about the difference between the big trend and small details of the market, and respond from a strategic and tactical perspective. Do not act too quickly. A decline is not scary, what is scary is that you do not know how to deal with it. In fact, the real money is not when the market rises, but when the market is volatile, you can still maintain profitability. Can you meet the standard? If you cannot meet it, you need to reflect on your technical reserves.