In the practical group of the Shanghai and Shenzhen stock markets, from the perspective of the main players entering the market, they can generally be divided into main players and follower traders. The two are opponents in arbitrage operations, as the vast majority of investors in the market belong to the category of follower traders. This article discusses the analysis techniques of individual stock market makers' added value from the perspective of following the trend, that is, exploring the classic stock selection techniques of main market makers, so that ordinary investors can be more targeted when selecting stocks. Market makers mainly consider stock selection from the following aspects: fundamental, technical, thematic, and operational.
1、 Fundamental Banker Value Added
Usually, the main market makers attach the most importance to the following fundamentals of individual stocks: 1. The quality and timing of the benefits generated by the issuance and rights issue funds. Generally, the main players prefer to choose stocks with profit growth potential and start trading six months before the profit generation deadline; 2. The amount of undistributed profits, as well as the amount of capital reserve and net asset value, are the most preferred by the main force, followed by stocks with high capital reserve and net asset value; 3. The main force prefers individual stocks without a history of stock dividends, with a ratio of about 1:3 between the circulating plate and the total plate. This type of stock is beneficial for the main force to help the enterprise improve its operating performance and increase its circulating stock price. Due to the current P/E ratio corresponding to interest rates being 44 times, for every 0.1 yuan increase in individual stock performance, the circulating stock price can increase by 4.4 yuan. If the ratio of circulating plates to total plates is too small, it will be too difficult and costly for the main force to help the enterprise improve performance.
2、 Technical added value of the banker
After selecting a suitable stock, the main task for the main force is to buy a large number of chips for that stock. Generally, the main force needs to hold about 30% of the overall stock flow to deduce the trend of the Dazhuang bull stock. To complete this qualitative change, it takes three months to six months of independent box oscillation independent of the large market's resistance to decline and rise. In general, investors unintentionally buy individual stocks during this period, and most of them will be induced by the main force's stock price psychology to buy high and sell low at a loss and be eliminated. Even some insiders may not be able to resist the main force's oscillation induction due to psychological reasons. For example, before the launch of Xining Special Steel, many investors in Henan knew that the stock had super main players involved and had the possibility of making big profits, but in the end, few people were able to obtain too much profit.
3、 Banker's added value in terms of subject matter
Some professional main players in the Shanghai and Shenzhen stock markets specialize in operating on social event themes that can attract the majority of investors to respond every year, and have also achieved high profits. Usually, this type of main force starts to repeatedly operate in a fluctuating upward trend six months before the outbreak of the theme. The timing of stock price operation is selected during the sideways stage when there are no other themes competing in the market. The main force operates in the preferred sectors of this type of stock to stimulate market associations. When there are few investors following the trend, they will buy chips while rising. Once the price difference reaches a certain level and there are enough trend following stocks, they will resolutely distribute them. After multiple cycles, once the theme is realized, the main force will not hesitate to sell out their chips. When the main force operates thematic stocks, funds are often concentrated in the leading stocks of a certain sector, and most thematic stocks do not invest large amounts of funds, only some chips used for price differentials.
4、 Banker added value on the operating surface
Main institutions often require high efficiency in the use of funds and must not make major mistakes, especially when operating at high and low stock prices with established routines. The main market makers will resolutely reverse the trend when there are obvious high and low phenomena in the market. The specific means can be the scaling up of institutional operation methods mentioned in the second item of this article. Whether they can recognize and feel the application of this method by the main force is a distinguishing sign between professional investors and amateur investors, and also the key to whether investors can achieve certain annual returns. Market phenomena when stock prices and indexes are at high levels include: 1. repeated occurrence of massive phenomena, 2. paralysis of retail investors for sharp declines, 3. many mid line indicators are high, 4. a large number of profit taking positions, and most retail investors' profit taking positions are concentrated in popular stocks, 5. amplification of bullish and bearish trends. The market phenomena when the stock price and index are at a low level include: 1. Repeated occurrence of low volume phenomena, 2. Narrow range of stock price fluctuations, 3. Low mid line indicators, 4. Large volume bearish candlestick after consecutive bearish candlesticks, 5. Enlargement of negative sentiment and decline of positive sentiment.
5、 The reason for the high added value of the banker
In general, the stocks with the highest added value by market makers should have the following key elements: first, stock quality; second, strong market control; and third, follow-up themes.
