The two common mistakes made by investors are 'buying leads to a drop, selling leads to a rise'. How to determine whether a stock is selling or liquidating. Shipping and cleaning are like twin brothers, sometimes seemingly the same, but with essential differences. Distinguishing between the two is crucial, as it directly relates to the yield on this particular stock. However, in practical operation, many investors treat the main force's shaking position as a shipment; The shipment was a shock to the warehouse, and the stocks sold skyrocketed all the way, while the stocks that were heavily held back fell repeatedly, deeply trapped. So much so that in addition to causing economic losses, it also has a significant impact on investment mentality. Therefore, it is important to accurately identify how to boost shipments.
Once the stock price solidifies at the bottom, it means that the market makers have bought up their chips, and the next step is a rally. Before launching a rally, we often see stock prices suddenly surge in volume for a few days and then fall into a dead silence. This is the reconnaissance battle of the market makers, and then we will see intense capital flow (rally)
Before the stock price starts to rise, the Zhuang family will first use some funds for trial trading to see how strong the long and short sides are. At this point, the trading method seen on the market is as follows: the market maker places orders first, trades against each other, and pushes up the stock price. The amount generated during this process is basically the market maker's use of their own chips and funds for activities. If most retail investors adopt the strategy of exchanging chips for funds, the selling pressure on the market will appear heavy. Once funds flow into the hands of retail investors, the market maker will be very passive, just like the army losing support.
So, when there is a heavy selling pressure on the market, market makers generally have two options: the first is to quickly raise the price and close the limit up board, with the aim of bluffing and boosting the stock price to alleviate the selling pressure (followed by a few days of slow decline in the stock price for short-term investors to follow up, in order to achieve the balance of the stock's periodic price and reduce pressure for future price increases). At this point, the graph shows that one day the stock hit the daily limit up and then resumed a decline, while the trading volume is in a state of contraction; The second type is to quickly raise and then quickly slide on the same day, with the aim of quickly withdrawing one's chips and funds on the same day to maintain balance in the position (followed by a few days of letting the stock price fluctuate and fall, allowing others to circulate chip funds, and the market maker continues to implement bottom torture tactics). The graph shows a large amount of long shadow or long shadow, with the main flow of funds being from individual investors to individual investors, and some of the long forces involved being short-term investors, while those who are eliminated are desperate trapped in the stock.
In the fund reconnaissance war, the main objective of the market maker is to preserve their strength and observe the significant gap in power between long and short positions. Their biggest ally is the investor who has been trapped in the stock for a long time, while their enemy is the investor who has a bad holding mentality. But no one can dance with the bottom of the market, mainly because most investors lack patience and perseverance to endure this bottom torment.
After using reconnaissance tactics to observe the market multiple times, the banker has basically understood the situation of the entire market. After figuring out how many chips are illiquid, they also understand how many forces will compete with them. Before the rally, the market maker has basically deployed their positions. It can be said that the stock price trend chart has been drawn in advance, and the plan will only be modified when encountering major fluctuations. Chips are weapons, funds are soldiers, and the intense and rapid flow of chips and funds - the battle of raising prices - has begun.
At this time, the market maker places orders to knock up the market, showing an arrogant attitude every day, quickly raising the price, creating a short-term profit effect, attracting more short-term customers to enter and exit, and allowing for the exchange of chips and funds between short-term customers. In this process, the main task of the market maker is to use their own funds and chips to circulate, allowing the chips to appreciate during the rise of the stock price. Frequent buying and selling by short-term traders can save the market maker's funds and reduce the pressure of profit taking during the rise.
High daily stock price increases and limit up restrictions are the main techniques used in the rally battle. Market makers strive to achieve this in one go, quickly raising the stock price away from the cost zone, either by increasing volume or reducing volume. There are two reasons for the increase in trading volume: firstly, the market makers make big investments in their own chips, artificially creating the direction of market hot money movement and attracting the attention of short-term investors; Secondly, the main transactions come from short-term traders exchanging chips with short-term traders, allowing them to advertise actively for the market makers and attract the next batch of short-term traders to enter. Shrinking and rising indicates that the locking of chips is very good, and the entire group is one-sided. The banker can almost take the entire plate, and on the premise of unanimous optimism, the banker can knock up the stock price with a few taps.
As a leek, you cannot escape sudden drops, let alone sudden drops, and have no chance of escaping the top. Money is hard-earned by yourself. If you don't have the ability to escape the top, step on the bottom, or catch a dark horse, you need to learn!
