Actually, this is not the case. If we don't hit the limit down and sell, individual investors will also follow suit; However, due to limited capacity to handle orders, institutions cannot release their goods. As prices gradually decline, institutions will suffer even more losses. Moreover, if you cannot find a competitor's order due to unattractive prices, you will become a blunt knife cutting flesh, and the pain will only be self aware. By using the method of hitting the limit down violently, the market's attention will be focused on it. When it drops halfway, there will be collaborative private equity or institutional investors who start to take huge orders. During these days of limit down, the market's attention is very high, and there will be huge orders of foodies. This indicates that the stock price should rebound at this time. Technically, oversold has appeared, and the stock price has halved. No matter what, it will rebound by more than ten to twenty percent. Therefore, retail and large investors rush forward, and institutional sell orders are being snatched up.
But the reality is not what individual and large investors imagine. In a bear market, those who release huge quantities often sell goods. It may seem like a big order sweep, but it is actually a trap set by the market makers, and then share the benefits.
For example, when South China Railway Rolling Stock Corporation (CSR) went public, with the listing price exceeding 60% of the issue price, five institutional seats flooded the top five for purchase. Are these institutions foolish? Do you have to pay a premium of 60% to take over the market, especially in a bear market? Are you afraid you won't be able to buy chips? If you wait a few days to buy again, it may even reach the issue price. In fact, institutions are not stupid at all. This is just a show of institutions wearing crotch pants. Those who receive a premium of over 60% will distribute a certain profit to these institutions that take over the market. Moreover, these institutions do not buy much, and more chips are given to others, including a large number of retail investors, at a premium. For those who access most of the high premium chips, those who profit don't need to consider anything.
Here I go back to the front, 600331. Those institutions had a cost of over 70 yuan, but they sold it for 38 yuan. Isn't that a huge loss? This is just retail investors' thinking. In terms of cash amount, institutions have suffered a lot, but from the perspective of chips, institutions can earn twice as much chips at the current exercise price of 18 yuan. As long as it rises back to more than 30 yuan, the institution's capital will return. Those who stay above 38 yuan can only wait for the golden age. This does not rule out the possibility of further decline in the future. If the stock price continues to fall, institutions will be more likely to make profits. So, I hope the stocks I am trading can fall as low as possible.
For example, in the price range of 20 to 18 yuan, I sold 20% of my stocks, and in the price range of 18 to 16 yuan, I sold another 18% of my stocks. Afterwards, I had to make up for it because in this downward trend, many stop loss orders began to emerge, and some people needed to replenish their positions. At this point, I had to rebound based on the situation of my chips. Why did I need to rebound? The main attraction is to buy chassis, of course, if there are a lot of chassis, I will go short again the next day.
In general, there are not many stocks that rebound and buy at the bottom on the first day. As long as it lasts for two days, retail investors will see why the stock is rising every day, especially in the meat cutting and replenishment markets. They usually chase after it. However, if the high position is bullish for a few days, it's better not to sell. After a few days, they may still make some profit. At this point, I will go short again and trap them. How much do I earn in between? Because profits need to be distributed during the pull, each period of decline can maintain a certain level of profit.
Why do I want the stock price of my estate to be as low as possible? Think about it, if you open a shopping mall, do you want the goods you sell to be cheap or expensive? It is naturally cheaper because it requires less capital. 10 yuan plus 1 yuan, they find it too expensive; If you add 1 yuan to 1 jiao, it won't show off and no one will argue with you, but the profit ratio is the same as 10 yuan and 1 yuan. The same goes for stocks, where a 1 yuan stock rises to 1. 5 yuan, not many people feel anything; But what about raising 10 yuan to 15 yuan?
This is the fundamental reason why the Chinese stock market has long and short periods of bull and bear, and few people hope that the stock price will be high to increase their costs.
5、 Can you talk about the positioning of retail investors and market makers?
On a vast grassland, small investors are like flocks of sheep, while market makers are like wolves. You may not have any objections to my positioning. 70% of investors in the Chinese stock market are losing money, which is basically true. Just like playing mahjong, four people play and three people compensate. The money of these three people naturally flowed into the pocket of that person, which means that the trillions of dollars lost by the investors have not disappeared or evaporated, but have been transferred to the pockets of a few people. This is the story of wolves eating sheep.
Why do sheep run when they see wolves in the grassland? I'm afraid it might eat itself. But in the stock market, it's different. Most people like to buy stocks with strong stocks. If they say they have strong stocks, they will be fierce and rise quickly. It's best to have strong stocks. What do sheep eat on the grassland? graze. Will it choose a place with wolves? And this wolf is also very fierce. Absolutely not. This is the self positioning error of stock investors. You are originally a sheep, just eat grass. This grass is to find a stock with good performance, buy it at a suitable price, and then wait for dividends and stocks to appreciate every year.
But most stock investors don't do this, they always want to follow the wolves and eat some leftovers. Is there any reason not to lose money? So, most of the sheep on the grassland were kept, while most of the stockholders were eaten.
6、 How does the main force educate and instill retail investors?
The topic I'm talking about may seem fresh to many people who have never heard of such a thing. Can the main force still educate and instill in me? Is it to maintain stability or ensure the property income of the masses.
Of course it is, but it requires more experience and ability to achieve this. The master leads you into the door, and personal cultivation depends on you. The Wealth Bar Hall of Fame teaches you what you should understand, while the rest requires you to personally practice.
