Market makers have strong financial strength, multiple information channels, and the ability to influence or control the trend of one or several stocks for a certain period of time. Therefore, how to correctly understand market makers, learn to observe their basic operating techniques, and profit from following them is what retail investors need to master.

In the operation of the stock market, many stocks sometimes soar and sometimes plummet, and signs of human manipulation are very obvious. The behavior of market makers does have a significant impact on the trend of individual stocks. Some investors, after tasting the sweetness of following the market, worship the market makers so much that they develop the "only market theory", as if they cannot make money without following the market, and regard following the market as the fundamental source of profit. In specific operations, these people focus on the village and try to inquire about its movements everywhere, using them as the basis for buying and selling. Overworshiping the banker is definitely a misconception. Bankers are also human beings, and they are not entirely winners. Many bankers have lost at times, and some even suffered disastrous losses.

Through analysis, we know that the market makers have a clear weakness of "difficult to turn around when the ship is big", and their funds also need to be included in the cost, some of which are quite high. As is well known, to make a stock, the market maker requires a large amount of funds. Part of the money is used to attract a large number of low-priced chips during the undercover stage, while the other part is used for long-term lock up. Although this part of the money is profitable after the rally, it cannot be used for the purpose of lock up. There is also a part of the money that needs to be used in conjunction with the rally stage. During the entire process of trading, a large amount of funds may need to be used at a certain time, which is difficult to achieve solely with self owned funds. Even if the market maker has so much funds, it will not hoard them for most of the time and use them for a certain period of time. Because most of the time, stock prices are in a consolidation phase, where large funds are not useful and idle will increase costs. Smart market makers often use their own funds to buy a large number of low-priced chips during the absorption stage, and then go undercover. Market makers only raise funds from various sources before the market rises, some of which have high interest rates. After a rapid increase and partial distribution, they gradually repay the loan.

Through analysis, we can clearly see that the capital cost of the market maker is very high throughout the entire process of trading, and the longer the time, the higher the cost. This is a great weakness of large market makers. The high cost of capital means that the market makers sometimes need to make quick decisions and dare not indulge in battles. Knowing this principle, we can analyze and calculate the cost of the banker, and then get our share of the profits from the banker's pocket.