In this stock market, the main force often determines the overall direction of the market. Therefore, in addition to mastering the basic viewing skills, we also need to understand the manipulation tactics of the market makers. Market makers are a special group in the stock market, who hold the financial power to influence at least one stock, and achieve their own profits by actively influencing the rise or fall of stock prices. The phenomenon of market makers is more prominent in immature stock markets. There are sheep and wolves, and the emergence of market makers is almost inevitable. On the other hand, market makers are active factors in the market, causing stock prices to soar and plummet, posing both risks and opportunities for small and medium-sized investors.
The process of attracting funds and building positions by market makers is often deceptive, with long-term and brutal suppression being common phenomena. Retail investors find it difficult to make money during the fundraising and promotion stages. Only by synchronously building positions with the funds of the market makers can the possibility of profitability be increased. Therefore, the process of market makers' fundraising and position building is worth careful study by investors.
1、 The four common signals for main force fundraising:
1. The volatility pushed up the stock price, and after attracting funds, the stock price was quickly raised, surged, and even hit the limit up
2. The volatility pushed up the stock price, and after attracting funds, the stock price remained strong and rose to the close
3. After shaking and driving up the stock price to attract funds, the market weakened and the stock price fell in the afternoon, closing with a long upper shadow line
4. Fluctuations driving up stock prices are the main factor in creating a trap to attract investors and lure them to follow the trend. After the price rises, it suppresses shipments
2、 The method of attracting funds by the banker
1. Pressure plate mouth suction chip
In the same day's trading session, there were many instances of large buying orders sweeping up several price points to collect chips. Choosing to read out is mainly due to the fluctuation of stock prices during the trading session. Generally, when there is such an opening, there will be a certain degree of pressure on the selling position. If this is the case, the probability of buying will be higher.
2. Bottom gradually rising temperature and chip suction
After a long period of decline or a rapid and significant drop in stock price, a narrow range oscillation trend has emerged, and trading volume has also greatly shrunk. If this weak oscillation continues but the bottom is gradually rising, it is likely that the Zhuang family is attracting funds. The oscillation is to make us investors sell our chips, and the gradual rise of the bottom is the best evidence for the official market makers to attract funds.
3. Banker draws funds horizontally
Individual stocks exhibit long-term sideways consolidation. High position holding stocks are sold out, while low position profit chips are sold out. The chips show a single peak density in the horizontal position. The trading volume shows a doubling. Breaking through the platform and achieving a profit ratio of over 90% is a starting signal.
4. Market makers fall to attract funds
This fundraising method is very aggressive, but it must be accompanied by the overall market. When establishing positions with low buying, the daily trading volume is low, and there is no trace of the main force on the market. The trend shows that the stock price is falling continuously or rapidly, even falling to the limit down board, which is clearly caused by the main force.
5. Banker's method of raising and attracting funds
Pulling high to attract funds is also a common method used by market makers to attract funds. The Zhuang family began a long process of chip collection during the stable period of the stock price, which can be seen as latent collection. At a certain point, the market maker feels that the time is ripe and begins to buy a large number of chips, causing the stock price to rise rapidly. At this point, a continuous bullish candlestick appears on the candlestick chart, which can be seen as a strong collection stage; After the strong collection phase is over, the market makers sometimes conduct a shake up and wash out, causing many profitable positions to be sold out, while other times they directly enter the high stage.
After learning about the trend of the main force before the rise in chips, you need to endure loneliness. At this stage, the main force cannot absorb as many chips as they want! Most shareholders are unwilling to give up easily after continuous deep hedging. If there are relatively few chips available for absorption at this stage, the main force will use various means to deceive shareholders and force them to sell their chips, such as breaking important technical positions or releasing negative news to create a panic atmosphere, in order to scare out investors who are not firm in their holdings and achieve the goal of absorbing chips at a low level.
3、 Tips for retail investors to keep up with market makers and eat meat
1. Avoid stocks with excessively inflated prices
For certain institutional heavy stocks, investors need to avoid stocks with significant price speculation. They can enter certain low-priced large cap stocks at the same time as the main force, as these stocks are usually the main varieties and are likely to emerge from a relatively stable structural market in the future. Usually, these institutions use relatively gentle methods and have a relatively long period of control over the market, so this type of stock is more suitable for medium to long-term investors to operate.
2. There is a high risk of following the trend of thematic stocks
For certain market hot money stocks, investors must be vigilant about their risk when following the market. These main players usually use the technique of raising high and hitting short positions very quickly. Therefore, it is more suitable for investors who make good use of short-term skills and have rich experience in short-term market observation to operate.
3. Use multi-directional thinking for analysis
Investors must be meticulous when following the market and use multi-faceted thinking to analyze. Usually, the main players' fundraising and position building activities are relatively concealed, and investors are rarely able to detect them. However, there are often some institutions that intentionally expose some loopholes to lure retail investors to follow the market. Therefore, investors must think more when following the market to avoid being trapped by the traps of the market makers.
4. Adhere to the strategy of advancing and retreating
When investing in the stock market, one must be in a position where they can move in and out, only then can they achieve profits while ensuring that their principal is not lost.