Analyzing the practical skills of the five step strategy for market makers' trading

During the upward trend of the stock market, individual stock rotation is a common phenomenon. If managed properly, investors can treat one bull market as two bull markets and make very lucrative profits. It's not difficult to discover big stocks from market makers. Generally speaking, stocks that are favored by market makers are usually those that investors do not pay much attention to. They have been trading sideways at low levels for a long time, and their daily trading volume presents a bean shaped pattern, like entering hibernation. But it is precisely these types of stocks that, once awakened, erupt like a volcano, causing a significant surge in market prices. The operational strategy of any banker can only go through the following stages:
1、 As long as investors have a grasp of the activity patterns related to the stock market, it is not difficult to achieve large profits during the low fundraising stage below the target price. At this stage, the banker often patiently, quietly, and quietly collects low-priced chips, which are the banker's inventory and the source of future profits. Generally, the banker will not easily sell them. The daily trading volume during this stage is extremely low and does not change much, with a uniform distribution. At the end of the fundraising stage, the trading volume increases slightly, but not significantly. The stock price shows no decline or even if it falls, it will quickly be pulled back, but the upward trend does not come immediately. Therefore, at this stage, retail investors should take a wait-and-see approach and not easily enter to avoid capital stagnation.  
2、 During the stage of trial buying and consolidation, the market maker will not act rashly until they have fully absorbed the chips at a low level. The market maker usually sends a small stock reconnaissance team to conduct a trial buying, slightly raising the stock price for a few days to see if there are many market trends and how the shareholders' mentality is. Subsequently, several days of continuous suppression shook out the unstable floating codes, clearing the obstacles for the upcoming significant rally. Otherwise, once these floating codes are sold and hit the market halfway during a significant increase by the market maker, the market maker will have to pay more cost for the increase, which is absolutely unacceptable to the market maker. Therefore, suppressing the shock market is inevitable. At the end of the period when the market makers suppressed and shook their positions, investors had the opportunity to build gold positions. At this time, the trading volume is showing a decreasing trend and sharply shrinking compared to previous days, indicating that shareholders have a stable mentality, are optimistic about the future market, and generally have a reluctance to sell. Therefore, in the late stage of suppressing the volatile position, taking advantage of the bearish candlestick and buying during the most severe downtrend, it is usually advisable to buy at the lower shadow line to capture the bottom of bull stocks.  
3、 The typical characteristics of the initial stage of a significant upward trend are a steady increase in trading volume, a steady rise in stock prices, a K-line average system in a fully bullish position, or about to enter a fully bullish position, with more bullish than bearish lines appearing. If it is a big bull stock, the closing price of the stock price is generally above the 5-day K-line average, which supports the stock price to extend upwards in a streamlined manner. The typical feature in the middle and later stages of this stage is that, accompanied by a series of washouts, the stock price rises more and more, the upward angle becomes steeper, and the trading volume increases. If there is a decreasing trend in quantity, then these stocks can either slowly sell at a high level sideways for about a month, or use ex rights to cause the absolute value of the stock price to decrease and then raise or sell sideways. When the trading temperature of a stock is hot and the trading volume is astonishingly large, the period of significant upward movement is coming to an end, because once the follow-up funds for buying are used up, the selling pressure will be released. Therefore, the trading strategy in the later stage of this stage is to firmly refrain from purchasing goods. If there are stocks in hand, one should always wait for opportunities to sell.  
4、 The washing stage is accompanied by a significant upward phase, which is carried out synchronously. Whenever the stock price rises to a higher level, the market maker usually washes the market, which can help the previous holders get off the market and switch chips, increase the average holding cost, and prevent the previous holders from making too much profit and selling their goods halfway, thereby causing the market maker to pay too much for the upward cost. Secondly, increasing the average holding cost is also quite beneficial for the market makers to sell and leave at high levels, so as not to scare away retail investors as soon as the market makers show signs of selling. The trading strategy at this stage should be flexibly mastered. If it is a short-term liquidation, investors can hold their shares. If it is found that the market maker is conducting a high-level flag shaped consolidation liquidation, the liquidation process generally lasts for about 11-14 trading days. It is best to sell at high prices first, and when the liquidation is about to end, it is not too late to enter the market at low prices.  
5、 During the selling and leaving stage, the number of negative lines appearing on the candlestick chart has increased, and the stock price is building a head. Although buying is still strong, it has shown a weak trend, and trading volume has been increasing for days, indicating that the market makers have been distributing and leaving. Therefore, decisively exiting the position at this time becomes the best opportunity for investors to leave. At this stage, the followers took the risk of risking their lives, which is actually an unwise move.