How do market makers manipulate retail investors? Practical Skills

The stock market is full of opportunities and dangers everywhere. Investors should not only profit in the stock market, but also be wary of the traps of the market makers at all times. To avoid them, they must first identify and understand the profit-making behavior of the market makers.

How do market makers operate stocks?

Firstly, market makers need to conduct research on listed companies to determine their risk and return situations, as well as their management practices

Secondly, in the early stages of trading stocks, market makers usually wait for opportunities, so it is estimated that there will not be much change. Later on, they will spread negative rumors through various channels, making investors in the market not optimistic and facilitating their own fundraising efforts, bringing in a large number of funds from individual investors.

Thirdly, market makers often use long upper or lower shadows to test the selling pressure and support level of stock prices, in order to find suitable opportunities to lift the stock price out of the cost zone.

Fourth point: In order to smoothly rise, many market makers will keep the stock price within a fixed price range for a period of time, which is also used to kill the patience of retail investors. Moreover, there will be continuous declines, even falling below the previous low point to wash away the market, making it difficult to predict.

Fifth point: The market maker will also raise the stock price to break away from the cost zone, and first put their chips in a profitable state to win control.

Sixth point: Market makers will use various means to mislead investors, including news and technical aspects, causing stock prices to fluctuate and causing most retail investors to leave.

In fact, the process of the banker's manipulation lies in the above six points. Only by understanding the banker's operational behavior can the stock respond with different measures at different stages.

However, it should be noted that the mentality of stock trading is very important, and experience, technology, and capital are equally important. There is no one that can be ignored. With one's ability, a thousand pieces of gold will come back. The best way to avoid the trap of the banker is to constantly learn and improve oneself