5、 Continuous limit up method
This is a common method used by market makers to target obscure stocks. It does not go through the process of patiently collecting at the bottom, but instead continues to rise for several days, constantly utilizing the opening and closing of the limit up board to quickly establish positions. Long term unpopular stocks have led investors to form the concept of "dead stocks". When the market rises, it does not rise, and when the market falls, it follows suit. Those who are trapped are very uncomfortable. Therefore, once there is a rise, they will sell one after another. In this way, the main force can easily collect a large number of chips. For example, on June 7, 1999, Shenzhen Petrochemical suddenly hit the limit up, followed by a surge in volume over the next two days. Many retail investors sold at high prices, and all market makers took over. By June 28th, in just 15 trading days, the stock price had more than doubled, leaving early sellers regretful.
6、 False bottom breaking method
It refers to the situation where the market maker has been building a platform style position at the bottom for a long time, but still hasn't collected enough chips. As a result, the market maker spares no expense to launch a crazy crackdown, breaking through the bottom platform and repeatedly hitting new lows, triggering panic selling in the market. The market maker then takes advantage of the situation to absorb the market, and then raises the market again, creating a false impression of a rebound and deceiving a large number of chips.
In the second half of December 1999, the Shanghai stock market pulled seven bearish candlesticks in a row, breaking through the 1400 point platform and causing a bottoming out pattern. At this time, stock reviews all commented that the market had completely gone bad and may have to explore 1000 points. So individual investors began to liquidate their positions one after another. However, on January 4, 2000, the market rebounded again and closed above 1400 points, breaking out of the bull market trend that lasted for 8 months in 2000.
7、 Counter trend warehouse building method
Generally speaking, investing in the stock market should follow the trend, but some market makers operate in the opposite direction, believing that building positions against the trend is easy to quickly obtain chips. At the same time, counter trend speculation is more likely to attract the attention of the entire market, and there will be more participants. As long as the stock has good quality or potential themes, there is no worry about not having distribution opportunities.
1. Reverse the market law. When the market is affected by bearish sentiment or other reasons and experiences a decline, the market makers choose the right stocks and build positions against the trend. From September to December 1999, the Shenzhen and Shanghai stock markets were in a period of adjustment, but after Kaidi Electric Power went public on September 23, market makers intervened and then rose against the trend, gaining a large number of chips. By the time the market turned around in 2000, the stock price had skyrocketed from 16 yuan to over 60 yuan.
2. When a stock is bearish and experiences a significant drop, the market maker builds a position against the trend. On March 29, 2000, ST Zheng Baiwen was applied for bankruptcy and debt repayment by China Cinda Asset Management Company, causing a significant drop in stock price. However, the market makers went against the trend and built positions, collecting a large number of chips.
8、 Unified eating method
At present, this method is commonly used in small and medium-sized new stocks and secondary new stocks. Due to the low cost of ownership for new stocks, once the price is appropriate, they will sell off one after another, making it easy for market makers to obtain chips. And our country's stock market is currently in a bull market, with one or two major market events every year, so choosing to invest in new stocks generally carries less risk. Especially in the adjustment of the market, new stocks are generally not positioned too high, and they are even more affordable and high-quality.
For example, Meggitt (0150), which went public on August 7th, the market makers used the method of buying a large number of chips by raising prices. The recently listed New China Fund (0972) and International Industries (0159) also used this method.
