The way for the banker to obtain chips: practical skills for raising and grabbing chips

(1) Overview of raising funds through crowdfunding

Pulling up funds for fundraising is the fastest way to build a warehouse, with the best results but also the highest cost. Raising and grabbing funds refers to the way in which market makers build positions while the stock price continues to rise. This type of warehouse building method mainly utilizes the general operating habits and psychology of retail investors, such as "selling high and buying low", "selling when seeing a rebound", "reducing codes when seeing a rebound", etc., regardless of cost, to quickly and massively acquire chips. The method of raising funds through price manipulation mostly occurs in obscure stocks or stocks that have been declining for a long time. After the market makers intervene in individual stocks, they quickly raise the stock price. Some market makers even resort to limit up to force short positions. The market makers who use this method to build positions generally have strong strength and very aggressive operating techniques.

(2) The operational technique of raising funds and grabbing shares

Raising the price to grab shares usually occurs when the market maker has no way to obtain the chips of the target stock from retail investors through suppression, oscillation, sideways trading, and other methods. The market maker can only intervene in the target stock by raising the stock price to make retail investors profit and exit the market. The use of this position building method is usually when the overall trend is gradually improving, or when the banker has a premonition that the trend is about to improve. Sometimes listed companies hide significant positive news, or individual stocks have the opportunity for significant speculation under the influence of some sudden positive news, and the stock price is in a relatively low state. The banker does not have time to build a position at a low level, so they will adopt this fast way of raising and building positions. This unilateral upward position building method allows the Zhuang family to continuously make small profits for market followers, while also enticing market investors to keep following suit. Through this approach, while constantly collecting chips, they also continuously reduce holding costs.

Pulling up and grabbing shares is the most time-saving method for market makers to build a position, and it is also the most expensive method among various building techniques. Throughout the entire process of rising stock prices, the amplitude of fluctuations is relatively large, and the number of washouts is also higher than other collection methods. The trading volume has been continuously increasing during this process. Sometimes, in order to obtain a larger amount of low-level chips, market makers will continue to push up the stock price, creating the illusion of "selling".

(3) Common situations of raising funds for fundraising

There are two situations for raising funds and grabbing them: one is the vicious speculation of short-term market makers, and the other is the behavior of some market makers who cannot fully attract funds at low positions.

1. Short term speculative activities in rural areas

The so-called short-term speculative trading refers to the entire process of building and distributing positions in a relatively calm trend of a certain stock, which is completed by short-term speculative investors in a short period of time. Because the degree of intervention is not deep and the market formed is very short-lived, usually only about ten days or even shorter, it is not detailed. Retail investors should pay attention to the fact that if a stock did not have obvious low position building behavior by market makers before, but suddenly increased moderately in volume for two or three days and then suddenly pulled up, they should take profits in a timely manner, especially if there is another irrelevant positive news after the pull up.

2. Low position cannot fully attract funds

The second common situation is when the market maker fails to attract enough funds at low levels and chooses to raise and build positions. This situation is not very common. Due to the obvious behavior of raising and building positions, it is easy to lead to follow the trend, which will affect future speculation. Therefore, its liquidation is often very sharp. That's why raising the position of stocks provides us with a good opportunity for short - to medium-term speculation.

(4) The characteristics of raising funds for fundraising

The daily candlestick chart usually shows a continuous bullish trend, appearing consecutively. Only when the market maker obtains most of the circulating chips, the trend gradually becomes mixed, and a lot of chips are collected as the stock price slowly rises.

The initial performance of raising funds and grabbing shares is similar to a low-level sideways trend, but the trading volume is extremely reduced without an irregular cycle of increasing volume. Moreover, the sideways trend lasts for a relatively short period of time, usually only about 3 months, sometimes less than 3 months. The main reason for the significant decline in trading volume is that the price is too low, and there are not many people willing to cut meat. Moreover, the quality of the stock is still acceptable, which also hinders the enthusiasm of retail investors to cut meat. Everyone wants good stocks and is not afraid to hold back, and they have to endure it to the death. In this situation, it is quite difficult for the market maker to attract sufficient chips. At the same time, considering the market maker's own capital turnover requirements or in order to hype up and synchronize with the trend, they have to adopt the method of raising and building positions. The above are the early characteristics of building a high position, which are that the time is not too long, the transaction volume is extremely shrinking, and the stock price fluctuation is very small, generally not exceeding 15%. The second step is the process of raising and building positions. At this time, the stock price will have two situations. One is to show a continuous small upward trend, almost closing with a bullish candlestick every day. However, looking back, after more than ten bullish candlesticks, the increase is only 10-20%, and each candlestick has an upper and lower shadow, which is actually a wash up during the trading session,

In this way, as the stock price gradually rises, the market makers will "grab" some trapped stocks upwards, while also giving a small number of people who buy on low-level platforms a chance to profit, taking advantage of the opportunity to eat up the chips of retail investors who intervene at low levels. Just as the stock price had been rising for a period of time and was approaching the early trading intensive zone, the stock price began to turn downwards, causing short-term customers who had caught up during the upward trend to liquidate their positions and be eliminated. The extent of this market wash is usually quite deep, and sometimes it can return to the previous unlimited platform. From a morphological perspective, it looks very similar to a weak market trend, which returns to its original form after a failed breakthrough (which is indeed the case at times). However, we should understand that the market makers will never give up and trap themselves after taking the chips, so there will definitely be significant market trends in the future. The second scenario is to attract funds through a rapid increase in trading volume over a few days. At this point, many people who have been waiting for a long time finally break free, so they quickly leave. The market makers then follow the rules and collect the full amount, and then do narrow range platform consolidation at the second lowest level, leaving short-term followers with no profit opportunities. Finally, they reluctantly cut their love. In the initial stage of this situation, there is a significant intraday fluctuation, making it difficult to grasp in the short term. The subsequent washout period may also be longer, which looks like a "bull short bear long" shipping market. However, if we think carefully, we will find who will sell at the second lowest level? Unless there is a significant deterioration in the fundamentals of the stock, a fool would not do that.

Generally speaking, in order for a banker to establish a position by raising funds and grabbing shares, the following points must be met:

1. The stock price must be at a low level

The so-called low position means that the stock has gone through a long-term decline, falling below 50% of its previous high point, sometimes even falling to around 30%. In the early stages of the decline, there was a surge in volume, but after the low position began to sideways, trading was relatively light, with no one paying attention to it.

2. The sideways time should be long enough

Generally speaking, the sideways trading period should be over 3 months, and some stocks can last up to 1 year. Because the longer the sideways trading period, the more opportunities there will be for profit taking, and few retail investors are indifferent to seeing their stocks remain unchanged for several consecutive months. The market has definitely gone back and forth several times during this period. Generally, people will cut their meat to chase after strong stocks in order to obtain short-term profits. Market makers precisely hope that this situation will occur and quietly buy cheap chips.

3. There was no significant increase in volume during the sideways period

If the market maker attracts funds too quickly during a certain period of time, it is easy to cause the stock price to rise rapidly, and due to the increase in trading volume, it is easy to attract everyone's attention. The market maker does not want everyone to be optimistic about the stock before completing the fundraising task, so they always eat in small amounts bit by bit, trying to conceal everyone's attention. Of course, occasionally there may be situations where there is a pulse of volume increase, where one or two small bullish lines appear after a period of time. However, afterwards, the stock price does not rise but falls, which is greatly unexpected. After a few days, people naturally forget about it again.

4. There are also various forms of sideways trading, and it is not really "motionless"

Generally speaking, sideways trading always occurs within a box, but the range of this box is not significant, usually within 25%. However, the price difference between the upper and lower ranges can only be seen for a long time, and it is not profitable in the short term, which will not attract short-term follow the trend traders. Most of the time, it's only 10% up and down, and no one is interested in doing it. The oscillation in this type of box may be a relatively regular sine wave, but in most cases it will show a slow rise and sharp fall pattern. This so-called "bull long bear short" pattern is the most reliable, because after a period of continuous fundraising, the stock price rises slightly. In order to reduce costs, the dealer usually returns the stock price to its original position within a short period of three to five days and then starts over. However, some market makers are very cunning. The boxes they make are very irregular, with fluctuating cycles and variable amplitudes. Sometimes they can't even touch the upper and lower edges of the box. At this time, we just need to hold onto a little bit, and the overall box will not be damaged. There are many details in the middle that need to be ignored to avoid being played tricks.