What I'm going to talk about today is how the tickets for connecting boards are obtained. It is the fundamental principle of the stock market explosion.

In the stock market, large institutions are always the first to move, which are not common private equity firms, but super funds in the stock market. This type of fund can analyze the low points of the stock market through a large amount of data and is very skilled at valuing stock prices. When the bear market reaches its end and the stock price is significantly undervalued, these super funds will find the significantly undervalued stock price and enter the market to raise funds. Unlike individual investors, super funds have the heaviest positions when stock prices fall, while individual investors tend to have heavier positions when stock prices rise. This is undoubtedly a tragedy for individual investors. When super funds perceive that the direction of economic movement is about to turn upwards and start building positions. The movement of the stock market has begun.

1. Building a warehouse:

Building a position is actually easy to understand. When the main force wants to use chips, under what circumstances will individual investors hand over their chips? Only when the stock price fluctuates sharply, are retail investors the easiest to hand over their chips. I don't know if you remember the time when the market was rescued in July 2015. Thousand shares limit down, thousand shares limit up, thousand shares limit up to thousand shares limit down, thousand shares limit down to thousand shares limit up. The market situation during that period was so stimulating that you were at a loss. Saying it's a market rescue is actually super funds manipulating investors to hand over their chips.

From an environmental perspective, warehouse building can be divided into upward warehouse building, downward warehouse building, and horizontal warehouse building. This specific form, background environment, and application will be explained to everyone in the following courses.

From the perspective of trading volume, the volume of established positions shows a clear A-type volume pile and L-type volume pile. Among them, Type A funds are often large public funds that are building positions, while Type L funds are more commonly used for private equity positions.

2. Washing dishes:

After the main players finish taking the chips, the washing stage begins. The reason for washing is that even if the main players shake violently when building positions and take the chips, there are always some people who have not yet come out. However, after the main force has obtained the chips, they cannot immediately rise because at this stage, there are too many people who cannot understand the main force's intentions, and there are too many floating chips. Once the main force rises significantly, these floating chips will be an unstable factor that hinders the height of the rise, so it is necessary to clean up the floating chips. The purpose of washing the plate is to remove those who cannot understand the intentions of the main force, and leave behind those who have lofty aspirations like the main force.

The process of washing dishes is not what everyone thinks, a few days or weeks. But it is measured in years. The washing time for circulating stocks between 200 million and 1 billion usually takes between six months and a year. Over one billion circulating stocks may take more than two years just to clean up. So it's difficult for ordinary retail investors to hold onto chips for such a long time.

3. Activation:

After clearing the market, individual investors are either eliminated or do not check their accounts anymore. At this point, if the main force wants to make a significant increase, they must first conduct a test. However, since many retail investors no longer check their accounts and do not participate, the test cannot be successful. Therefore, the main approach adopted by the main force is to quickly rise and surprise individual investors. Don't check your account when it's down, don't you even check when it's up?

When the main force is activated, it often does not let individual investors get out of the trap. Instead, when they are just about to get out of the trap, the main force will follow suit and smash downwards, or when the main force just gets out of the trap, they will smash hard. Poor individual investors, under the control of the main force, surrendered their chips just before the rally.

4. Building rocket launchers:

The stock price has been activated, but it cannot be determined how many weak chips there are outside in the end. At this time, the main force's approach is to quickly lower the price, judge the weak chips based on the decrease in trading volume, and at the same time, build a bottom again during the process of lowering the price to complete the final market wash. Until it is confirmed that the unstable chips in the market no longer affect the overall situation, the final upward trend begins.

5. Pull up

After building the rocket launcher. The main force will quickly rise and hit the daily limit up. Because only in this situation can a large amount of attention be attracted in a short period of time, attracting a large number of people to take orders. Only with the large amount of chips previously held by the main force can there be a possibility of shipment. At this time, retail investors only see the so-called monster stocks, and hot money also enters the market at this time, because they know that super funds need someone to take over the market, the more the better. Only at this time, super funds will not be sensitive to large funds and will not wash away the market. For individual investors, due to the small size of the ship and the ease of turning around, this short-term continuous upward trend is also their favorite and most desired.

6. Bo Sha:

After the super funds have finished selling, the market enters the stage of buying at high levels, with countless people taking orders. Whoever runs fast can still make a profit, while those who run slowly can only pay for themselves.

From the entire operation process of the above-mentioned stock, we can see that when a stock experiences a consecutive board, it is actually in the final stage of the main force's long-term operation before shipment. Therefore, a consecutive board is both prosperous and ending. Only by understanding the principles behind this can we know ourselves and our opponents, and win a hundred battles.