In the stock market, as the main force, before preparing to significantly raise the stock price, one should also understand and grasp the disparity between long and short forces, as well as the market's recognition of the stock price and the willingness of other investors to raise funds. At this point, it is necessary to choose the appropriate timing and use a small portion of funds to boost and suppress the stock price, in order to explore the market's reaction to the stock and other investors' willingness to raise funds for the stock. Based on the different performances of the market and other investors, adopt corresponding strategies to further manipulate the stock price. This process is called 'trial testing'.

In the stock market, if the main force holds the vast majority of the circulating chips and there are only a certain degree of circulating chips in the market, then the trial market loses its true meaning. The main purpose of trial trading is to better grasp the initiative, use skills to market, and effectively reduce the operating costs of the main force as much as possible, thus achieving a good effect of borrowing fire and wind power.

The purpose of the banker's trial

Are there any other market makers lurking?

When a market maker is sitting in the market, if there are other market makers lurking in the target stock, it will completely disrupt the market maker's predetermined sitting plan, because if two or more market makers operate on the same stock without sufficient communication and negotiation beforehand, there may be a battle between market makers. Before entering the market, it is necessary to conduct a trial session to clearly understand whether there are other market makers lurking in the stock. If it is found that there are other market makers lurking in the market besides oneself, the new market maker must adopt a relatively stable method to solve the problem of "harmonious coexistence" with other market makers, in order to achieve their established plan.

How do retail investors react to the market?

The opponent of the market maker is numerous retail investors, and before proceeding with the next operation, the market maker must grasp the reactions of retail investors to the stock.

In most cases, the banker's trial trading operation is to place a large sell order at the opening to suppress the stock price, and observe the subsequent trading volume and stock price decline. When suppressing trial trading, it was found that the trading volume and decline in stocks were both significant, indicating that the majority of small and medium-sized retail investors did not have a strong willingness to hold shares. Market makers can take advantage of the current low stock price to collect chips. If the position held by the market maker is already quite heavy, the large sell orders above should be cancelled, and some of the chips put up by individual investors should be eaten up to stabilize the stock price.

When testing the willingness of retail investors to chase higher prices, market makers usually place large buy orders at the opening to boost stock prices, and observe the subsequent trading volume and increase in stock prices.

When the market maker raises the trial price, if the trading volume and stock price increase significantly, it indicates that most retail investors are optimistic about the stock and have a strong desire to chase after it. If the trading volume and stock price increase are not significant, it indicates that most retail investors are currently not optimistic about the stock and have no intention of chasing higher prices. At this point, the market makers will continue to wash the market and suppress the stock price until retail investors agree with the stock and there is a simultaneous increase in both volume and price when the stock price is raised.

Main testing strategy

The main force needs to adopt certain strategies to achieve the purpose of trial trading. The main force will adopt different strategies based on the different situations of the trial trading.

(1) On the day of the trial trading, the main force used a chip thrown at the opening to test the selling pressure level and suppress the stock price. If there is a subsequent decline that exceeds the expected range of the main force and the trading volume increases, it indicates that there is heavy selling pressure today, and retail investors are not reluctant to sell due to price drops.

Tip: When testing the selling pressure level of the main force, the operational strategy of bullish and bearish outlook on the future market

If the main force is optimistic about the future market and has already absorbed some chips, it is not suitable to boost the market by washing up or passively protecting the market; If the main force is not optimistic about the future market, they may first raise the price and then sell their chips, and end the day with a bearish turn.

(2) In order to test the willingness of retail investors to hold shares, the main force will first sell a chip at a low price at the opening, and then the stock price will slowly decline, with a small retracement range and a reduced decline volume. This indicates that retail investors are reluctant to sell and are unwilling to cut prices.

(3) In order to test the willingness of retail investors to chase higher prices, the main force will adopt a strategy of opening slightly higher and then increasing volume to raise prices, and then observe whether there is a buying trend. If individual investors are optimistic about the future market, they will actively buy, showing a trend of increasing quantity and rising price. In the face of such a situation, the main force often decides to raise prices; But if individual investors are not optimistic about the future market, then the amount of buying following the trend will be very small, manifested as a decrease in volume and an increase in price, and the stock price is unable to rise. At this time, the main force will reverse and short.

(4) The main force can determine the actions of individual investors during the trading session by analyzing the volume price relationship. If it is found that retail investors are chasing the rise instead of killing the decline, their performance during the trading session will be either increasing in volume and rising in price or decreasing in volume and falling in price, and the stock price will remain above the previous day's closing price throughout the day. At this time, the main force will launch a strong attack to rapidly raise the stock price; If the main force finds that retail investors are eager to sell and have weak willingness to chase higher prices, their performance during the trading session will be a deviation from the trend of volume contraction and price increase or volume increase and price decrease, and the stock price will always fluctuate below the previous day's closing price. At this time, the main force will deliberately create some positive news to cover up their shipments.

On the day of the main trial session, there will be several different situations on the intraday trend chart, mainly including a significant opening high at the moment of opening, a significant opening low at the moment of opening, sudden fluctuations in stock prices, fluctuations in stock prices throughout the day, a sudden rise before closing, and a sudden decline before closing.

1. At the moment of opening, there was a significant increase in the opening price

During the main trial trading, the stock price will be opened at a high level in the form of a daily limit up or a significant increase, but soon the stock price will fall back instantly. The purpose of the main force doing this is to test whether the selling pressure above is heavy, and at the same time, the main force does not want to close the red market (today's closing price is higher than the previous day's closing price), which will cause short-term investors outside the market to follow suit, so they close the bearish candlestick on the daily candlestick.

The main force not only achieves the purpose of trial trading through such operations, but also plays a role in shaking the market. If the stock price opens significantly higher or reaches the limit up, and the selling volume on the market is very small, it means that the selling pressure above is very small; On the contrary, if the stock price opens significantly higher or reaches the limit up, causing a large number of selling orders in the market, it indicates that the selling pressure above is severe, and the confidence of the shareholders in the market is insufficient. Many shareholders will choose to profit and exit.

【 Techniques 】

Operational strategy for retail investors who notice a significant upward trend in stock prices at the moment of opening

If individual investors discover a stock with a significant opening trend at the moment of opening, as long as they can accurately determine that the stock is in the main trial stage, they can boldly enter during the main downward trial stage; If you are a retail investor who already holds the stock, don't panic and worry. You should patiently hold the stock, wait for the main force to rise, and profit from it.