short, adaptable and fast
Short term market makers are the most numerous and common market makers in the stock market. Not only can we see their active presence in the rising market, but we can also see their footprints in the stock market during rebounds, trading sessions, and even downturns. Like Xiamen Haifa in December 1995, when the stock market continued to decline, the market makers took advantage of the news that "Madam" company had purchased its shares and forcibly raised it by nearly 30%, becoming a typical weak market and short market.
The reason why there are the most short-term market makers is first and foremost due to the numerous opportunities for market manipulation, including the rebound of oversold stocks in the general market and individual stocks, as well as various positive news from the general market and individual stocks. At the end of March 1996, due to the spread of the "Ten Gifts, Ten Schools, and Five Schools" policy in Jialing, China, the price increased by nearly 10% within a few days. This also includes the need for replenishment due to individual stocks falling behind the same sector. These opportunities can be said to exist at any time, so short-term market makers can appear in any market.
Secondly, short-term market makers do not require much capital, with three to five million yuan or even less, which can be used to make a market. There are also many institutions and individual wealthy individuals with such a large amount of funds, which means there are many potential and qualified people to run a business. In addition, the trading techniques required by short-term market makers are far less complex than those of medium-term market makers. From the perspective of investment opportunities, short-term trading opportunities are relatively simple and clear, far from being like medium - and long-term trading, requiring a more accurate judgment of the medium - and long-term trends; Good discernment of individual stock potential is necessary; We need a set of real skills to shape concepts.
In addition, the entire process of collection, lifting, washing, and distribution is also a very complex process. At the same time, the trading techniques of short-term market makers are relatively simple and easy to learn, and can be basically understood through one or two practices. So, there are more people who know how to make short houses, so naturally there are more such market makers.
Collection of short-term market makers
Due to the relatively short duration of stay in Fuzhou, the fastest is one day, and the longest is only 15 days. Short term market makers collect relatively few chips, usually only 20-30% of the circulating chips are sufficient. It is precisely because fewer chips are required that short-term market makers have easier collection and simpler tactics.
There are two common types: first, gradually absorbing at the bottom in the short term, forming a double bottom, triple bottom, or box bottom in the short term. Like the Southern Fund at the end of March 1996, which rose from around 1.2 yuan to a correction of 1.39 yuan, forming a box shape at 1.35-1.38 yuan, while other funds had just made deeper adjustments. And the decline of Southern Fund is due to the intervention of market makers. Later, the market maker introduced a dividend plan to raise the price. 2、 Pull and collect at the same time. Due to various reasons, it is no longer possible for the banker to collect low-priced chips at low prices, so the banker has to buy while buying. As mentioned earlier, the Southern Fund has risen from around 1.2 yuan. Because the stock has been consolidating around 1.2 yuan for a long time and has fallen with no room for further decline, there are very few people willing to sell, resulting in a decrease in trading volume and causing the market makers to not receive chips at low levels. So, it had to pull and collect at the same time.
Short term market makers' pull up
Short term market makers, due to their limited collection of chips, generally do not raise the stock price too high. The key to raising the stock price for short-term market makers is to take advantage of the trend, such as the rebound of the market, the rise of the market, the good news, and the supplementary increase. This is very different from the situation where medium-term market makers lock up a large number of chips to raise the stock price. Due to its complete use of leverage to raise prices, most or even the vast majority of the lifting is done in one go. There is usually no significant washing in the middle. Because the banker does not hold many chips, they cannot afford to wash the market and there is no need to wash the market. It is precisely because the market makers have few chips in their hands and purely rely on market making, that the short-term gains of stocks operated by market makers are not significant, usually around 10%. To achieve a 20-30% increase, the stock market must be in a bull market or have significant positive news for individual stocks.
Distribution of short-term market makers
Short term market makers, due to their limited holdings of chips, find it easy to distribute and their tactics are not complicated. Usually, when short-term speculation reaches its peak, the market makers take advantage of the situation to create a market. As the saying goes, 'fire borrows momentum from wind, wind helps fire power,' attracting a continuous flow of subsequent funds. When at the top, there will be more funds in the future, and the banker will take the opportunity to distribute a large amount. The entire distribution can sometimes take one or two days to complete, and sometimes it can take one or two hours to complete. On the real-time chart, sometimes a typical head shape can be seen, sometimes it appears in a box shape, and sometimes it is just a continuously descending curve. The distribution of short-term market makers mostly adopts a diving operation principle. Short term market makers, from collecting, raising to distributing, have always adhered to a fast word throughout. Therefore, short-term market makers are known as "fast shooters". Market makers always adhere to a fast word, and followers should also adhere to a fast word.