Knowing oneself and one's enemy is the key to achieving victory in a hundred battles! This is an ironclad law. In the stock market, in addition to mastering basic viewing skills, we also need to understand the trading tactics of market makers. For most novice investors, it may be difficult, but if we want to make steady profits in the stock market, we have to delve into the trading methods of market makers.

Firstly, we need to know who the banker refers to?

1. The banker is also a shareholder. It is worth noting that sometimes the banker is not just one account, it may be multiple accounts, or a collective, group, consortium, or other new type of account.

2. Market makers usually refer to shareholders who hold a large number of outstanding shares.

3. The banker's position in a certain stock can affect or even control its price on the secondary market

4. Market makers and retail investors are a relative concept.

Weakness of the banker:

1. A big ship is difficult to turn around because the position is too heavy, and it is not an easy task to successfully cash out. In the process of stock price trend, market makers need to play with many tricks and use many indicators. But if individual investors see through and refuse to accept the temptation of the beautiful prospects he describes, and refuse to take the last blow away from the high stock value, the market makers are helpless. At this point, the banker will be locked in the sleeve they have woven themselves. The stock price is maintained by the reversal of the test, while smart retail investors have already left this hot potato to the market makers.

2. The pressure of capital cost is high.

3. Technical indicators show signs.

The process of the banker sitting in the market:

In the actual market, a complete market positioning process should include 10 stages, which are in chronological order: warehouse building, trial trading, consolidation, initial rise, liquidation, rally, shipment, rebound, smashing, and closing.

Deeply analyze the premonitions of market manipulation by market makers and easily grasp the profit model of following the market to eat meat

The above is a relatively complete and standard process for market manipulation, known as the overall model of market manipulation for market makers due to its clear thinking and strong operability.

The four steps of a banker's position: building a position, clearing the market, raising prices, and selling.

Phase 1: Funds begin to slowly flow into the rectangular box, indicating that there are funds building positions. Only when the main force completes building positions and absorbs enough chips can they lay the foundation for the subsequent stages.

Phase 2: After the main force completes the establishment of positions, it begins to rise and quickly break out of its cost zone to cope with some unknown risks in the market.

The third stage: usually the most painful stage for retail investors, which is market washing. Wash away profit taking and follow the trend orders. When these two situations are rare, it should also be the end, and the trading volume will steadily decrease during this process.

The fourth stage is to quickly rise and exit with profits. Of course, there may also be a rebound after another round of consolidation in the middle, and most retail investors will get off halfway through this process.

From these stages, it can be seen that the timing for investors to intervene is during the establishment and liquidation stages (careful investors can see from the chart that funds are net inflows in these two stages in the early stage). In between, investors need to carefully judge the position of the market and try not to be washed out as much as possible. For stocks that enter the continuous upward phase, the timing for issuing or reducing positions can refer to this method: during the final stage of crazy upward movement, when the first bearish candlestick appears, it is the timing for reducing or issuing positions. This method cannot guarantee maximum profits, but at least it can put most of the profits into the pocket.

The main idea of washing up the market:

1. The long-term sideways adjustment of stock prices, during which there will be slight fluctuations, has already quietly intervened

2. Falsifying on commission orders, often selling more than buying, while the stock price rises slightly. Massive selling orders create the illusion of excessive selling pressure, and retail investors who are unaware of the situation will sell their stocks

3. By using negative news to confuse retail investors, we are taking advantage of the situation to suppress price washing.

The purpose of the banker's market washing:

Market makers usually involve large amounts of capital, and once caught, they suffer significant and devastating losses. Therefore, before entering the upward phase, the market makers need to wash their positions. Only after sufficient adjustments and floating chips can they be basically cleaned up, and the market makers can easily move up. To ensure no mistakes, the market maker will conduct a market wash before taking action.

In summary, the main purposes of market manipulation by market makers are as follows:

1. Attract new investors to enter the market and follow the trend

Market makers need to constantly attract new investors to enter the market and follow the trend in order to continuously increase the average holding cost of the market, reduce the pressure on stock prices to continue to rise, and enhance the stability of new entrants' chips.

2. Clean the bottom profit market

If the main force only blindly raises after attracting funds, it will inevitably suffer heavy profit selling pressure, thereby increasing the difficulty of the main force raising and distributing. Therefore, the main force must go through the process of washing the market, shaking out some weak bottom chips in the market to alleviate upward pressure.

3. Get rid of short-term customers who follow the trend

In the stage of attracting funds from the main force, some shrewd investors may be aware of the main force's movements and follow up in a timely manner, which is something that the main force cannot tolerate. The market maker can only allow these short-term investors who follow the trend to have small profits, and cannot allow them to enjoy the benefits of the main force's hard work to raise funds. Therefore, the market maker must wash out the chips of short-term investors through market washing.

4. Make the dealer have a price difference to make

The main force obtains price difference returns by selling high and buying low, thereby reducing holding costs and adding a new group of lock ins, killing two birds with one stone. In this way, it not only increases the courage and confidence to boost the stock price later, expands the profit margin, but also makes it difficult for the market to understand the holding costs of the main force and distinguish the future selling positions of the main force.

5. Confusing short-term customers who follow the trend

Washing the market can also make some short-term investors who operate based on technical skills dizzy and disoriented in the process of blindly following the trend of high selling and low buying. I originally intended to sell high and buy low when the main force was washing up, but often ended up selling low and chasing high, becoming a driving force for the stock price to rise.

Therefore, investors only need to understand the purpose of the market maker's liquidation, so that they will not panic when encountering liquidation. As long as everyone maintains a good mentality, resists the temptation of small profits, and is temporarily trapped by the market maker's liquidation strategy, ignoring the various liquidation scams of the market maker, they will gain more substantial profits in the later stage of the rally.