Recently, there have been many beginners in stock trading, and the stock market is unpredictable. For these new forces in the stock market, how can individual investors strengthen their self-learning awareness? Stock trading is actually a test of people's thinking. If your thinking is correct, you will earn your first bucket of gold in the stock market. Many friends who have just entered the market have paid a lot of tuition fees, and many beginners who enter the stock market may have many wrong attitudes.
Overview of Banker's Market Cleaning
Everyone in the stock market wants to ride a dark horse, and most investors have encountered dark horse stocks that could have made a lot of money, but unfortunately were kicked and kicked by the dark horse, and fell off the horse halfway. As soon as he took off the reins, the horse disappeared from the dust, with no chance of getting on the horse again. The feeling of investors is often that if you don't sell it, the stock price won't rise. Just as you liquidate your position, the stock price skyrockets, as if it's just a few shares in your hand. I believe everyone has experienced this painful process, and most of them have experienced it more than once. These are all tricks used by the banker to wash away the market. In this section, we will have a preliminary understanding of dish washing.
Washing out is just one step in the process of market manipulation by market makers. In order to better understand the washing out process, it is necessary to first have a comprehensive understanding of the market makers' market manipulation process.
Usually, market makers in the stock market have the following main purposes for market washing:
1. To prevent the situation where the market maker scares away retail investors as soon as there are signs of selling, because clearing the market can increase the average holding cost and help the market maker sell at high levels and leave. Or wait for the opportunity to mature further, and some may continue to absorb goods by washing dishes. There are also market makers waiting for the cooperation of the trend or sector.
2. Forcing early shareholders to sell their chips to prevent them from making too much profit and selling them halfway through the market, ultimately threatening the banker's promotion and distribution, and causing the banker to pay too much promotion cost, that is, to switch chips outside of the banker's plan.
3. Constantly changing holders at different stages to increase their holding costs and further reduce the pressure on market makers to boost stock prices in the future, so as to distribute at high levels calmly in the future and ultimately trap the last follower at the temporary high point.
4. During the shaking process, high throwing and bottom suction. The banker can charge a portion of the price difference to compensate for the higher trading costs incurred during the upward phase. In this way, it not only increases the courage and confidence to boost stock prices in the future, opens up profit margins, but also makes it difficult for the market to understand the cost of market makers and the position of future market makers' shipments.
5. Make short-term investors who sell high and buy low unclear about the intentions of the market makers.
6. Adjust the position structure. If the banker holds chips in multiple stocks, they can adjust the position ratio of the stocks they hold by washing the market, dividing them into primary and secondary positions to better display sector effects; Adjust the funding ratio. If the market maker has a relatively large proportion of chips at the bottom and does not have enough upward momentum, they can use the higher price at the beginning of the market wash to sell and restore the upward momentum. Sometimes, the super main force may exit at high levels in several stocks during the trading cycle, allowing the market to naturally carry out market washouts. The funds released may then be directed towards other stocks that have completed washouts to boost the market, and when they reach a relatively high level, they may retreat back to the stocks that were about to end their washouts, fully utilizing the efficiency of fund utilization.
What are the characteristics of the banker's market washing?
1. When studying the characteristics of the market, the main force usually has a large pressure on the selling side during the market wash, and occasionally there will be relatively large orders smashing the market. However, the characteristic of the market is that the pressure is large but does not fall, and the smashing is fierce but does not continue to fall. On the contrary, when it comes to shipping, buying orders are large but not rising.
2. If the candlestick pattern cannot shake out the old oil, there is also a torture called trend line breaking method, because there are too many people in the market who operate according to the trend line. Therefore, the main force will use a giant Yin to make a guillotine and break below the trend line. The difference between inventory cleaning and shipment is that before the shipment falls below the trend line, it is necessary to increase the quantity, because when shipping, the goods must be shipped, and then the shipment must be based on the quantity. But washing up is not, there is no sign of shipment before suddenly falling below the trend line. This is the fundamental aspect of judgment. The washing down below the trend line will not be too far away from the trend line, and it usually takes about three days to get up.
3. In terms of K-line shape, it may damage the shape, such as circular head, head shoulder top shape, and downward sloping flag shape (rising flag shape). For the main players, there is basically no concept of graphics. If they draw, it must be for the market to see. Of course, if the trend is volatile, the main players will also pretend to be real and smash the market sharply downwards. Even the most stubborn individuals may temporarily leave this stock for safety reasons. The main force's goal is usually achieved by quickly pulling back the price.
4. Massive turnover. There is a kind of deception called hand swapping. After a period of rise, there will suddenly appear a bearish candlestick with a huge amount, or even a limit down candlestick, which is the most tense time. According to theory, this is a shipment, but the main force is using it to wash the inventory. However, if this type of washing up is in an area where there is a significant increase, it may be due to a partial turnover of the main players, and it will be easier to pull higher in the future. Many stocks are washed in this way. The more aggressive main force may even make three consecutive heavy bearish lines, which look like dark clouds covering the top. The only way at this point is to close your eyes and wait. It's better to earn less and wait until it's clear before deciding on a strategy. If a bullish candlestick has regained several bearish candlesticks, you can laugh.
5. All the washing techniques above may not deceive experienced veterans, but there is another kind of washing that you cannot avoid even if you know it, which is to kill time washing. If there is anything that can most shatter the will to hold stocks, it is not technology, but time. A good stock may not matter if it is consolidated for three weeks, but if it is consolidated for three months, you may feel uncomfortable all over and go crazy. It is also extremely normal for a big bull stock to consolidate for six months. At this point, even though you know this stock is good, all you can say is that you are a strong player and can't afford to provoke us. Just as you left, it began to soar. This is why many people prefer to follow up on rising stocks rather than cultivate their own bull stocks.
6. Negative wash plate. After the main force is ready, if there is suddenly a negative news, don't be afraid. This is what the main force hopes for. Negative news becomes a means of washing away the market, and after the fluctuation, the market will rise.
Common shape washing techniques for market makers
1. A single shade with a huge amount of washing on the plate
A single bearish candlestick with a large volume drop is generally considered by retail investors as a skill level break. However, there are two points to confirm the need for skill breakthrough: a continuous three-day drop in volume and a spatial drop fluctuation of over 3%.
2. Opening the gate to release water, washing out the market and hitting the daily limit up
The first limit up board at a low level, when the limit up board is initially closed, the main force usually opens a limit up board 3-5 minutes after the limit up board is closed. The duration is about a few minutes, which means to do the final wash before the vicious rise in the future. At this moment, the main force will wash as much as they can wash out! After reaching the daily limit up, there are usually short-term investors who choose to exit, and the "opening the gate and releasing water" to wash the market has a better effect on cleaning up short-term floating chips!
3. Triple Yin Shock Warehouse Cleaning
After the first limit up board of the stock, pull another limit up board, and then adjust three consecutive contraction bearish lines! This is a significant washout behavior, and the subsequent consecutive correction trend of bullish candlesticks strongly supports this washout behavior! The difference between washing and shipping is that the majority of washing is due to a decrease in quantity; Falling and increasing volume are mostly due to shipments!
4. Falling limit wash
Presenting a limit down, quite frightening! However, there are two points to note: first, the limit down and volume reduction, as the main force cannot produce much goods; The second reason is that after the limit down, the stock did not break below the limit down level, but instead the small yin and small yang candlesticks continuously corrected the shape of the limit down damage! When the moving average is placed in a bullish position and attacks again, it can be determined that such a limit down is a wash up! I will definitely be able to boldly intervene in the future and wait for short-term bursts!
Dealer shipments
Due to the large amount of funds, the banker has eaten a belly full of chips, making it difficult to turn around and escape. Nowadays, retail investors are becoming more and more shrewd. Why should I take risks and go to high positions to take orders? Therefore, in this game of survival, the banker is not always the winner.
In our years of practical experience, we have found that many market makers are unable to sell their products smoothly due to unsuccessful operations in the final stage. In this situation, not to mention making money, not losing or losing less is considered very good. So some market makers were trapped and had no choice but to switch from short to long positions, relying on reverse trading to maintain their stock prices over the long term. The bond market gradually rose, and it was like passing a year.
In order to achieve the goal of smooth shipment, the dealer will definitely do everything in their power and resort to any means necessary at this stage. Every detail of the shipping process is carefully planned and properly laid out, including deployment before shipment.
5 major signals for dealer shipments
Firstly, achieve the goal. There is a theory of double rounding, which has not been widely applied in the stock market yet. The fewer people who master a theory in the market, the greater its reliability. Therefore, this is a good method for judging the high point of a stock. Simply put, the best way to buy a stock is to combine the doubling and rounding methods. When you predict a certain point using several different methods, you need to prepare to sell at that point. Of course, various other technical analysis methods can also be used to make predictions. So when the predicted target position is close, it is the time when the main force may ship.
Secondly, there has been an increase in righteous news. When there is an increase in news about the righteous path, that is, when there is more news in newspapers, television stations, and radio stations, it is time to prepare for shipment. During the process of price increase, there is usually not much news in newspapers, but if the promotion of the righteous path begins to increase, it indicates that the market makers have the intention to withdraw and want to sell.
Thirdly, rumors have increased. You are working on a stock when suddenly this friend sends you a certain message, that friend also tells you a certain message, and another friend tells you a certain message. This is a precursor to the main force selling. Why hasn't there been any news before?
Fourthly, whether to increase or not. Not rising when the form, technology, and fundamentals all need to rise is a precursor to selling, and this is a common example in the stock market. The form requires an increase, but the result does not increase. There are also technical requirements for an increase, but whether it should increase or not. Some have released expected positive news, with fundamentals demanding an increase but stock prices not rising, which is also a precursor to shipment; The technical aspect determines whether the stock should rise or not, which is a precursor to shipment.
Fifth, increase quantity without rising. Regardless of the situation, as long as the volume does not increase, it is basically confirmed that the shipment is being processed.
Market maker's shipment timing:
The timing of shipment is very important. If the shipment time is too late, it may lead to a rapid decline in the trend of the market, making it difficult to ship smoothly; If the shipment time is too early and the market continues to rise, it will lower the profit level. Therefore, the market maker must determine a reasonable balance between risk and return, and seek the best timing for shipment.
1. In a bull market, the popularity is strongest and investors have a strong desire to chase higher prices, which is very advantageous for distributing chips. Smart market makers will always choose to leave during the peak of the wealth feast;
2. Using the limit up to quickly raise stock prices and artificially creating false prosperity can attract a large number of followers and create opportunities for shipment through newspapers, magazines, and TV coverage.
3. Fundamental positive news can gather popularity, and in order to match shipments, market makers must predict the release time of these news in advance or create their own positive news to lure investors into the trap.
