When a stock encounters a major player entering the market to attract funds, it means that the stock has opportunities in the future. The variety that the major player is entering to attract funds is the first choice for trading! But having a main investor in a stock does not mean that the stock price will immediately soar. There are multiple reasons for this: insufficient fundraising, and the main force will not easily pull up; After attracting funds, the market needs to be washed up, and the main force waits patiently for the best time for the market to rise. After attracting funds, the main force encounters a sharp decline in the market and follows suit. These are all factors that affect the main force's ability to attract funds and may not necessarily immediately increase. What kind of main force will immediately rise after attracting funds? Short term arbitrage firms specializing in short-term trading belong to this category. After attracting funds, short houses usually do not wash their stocks, nor do they have much influence on the quality of the market. After receiving the goods, they usually immediately raise the price and sell them to cash out.
From the performance of individual stock volume and price, it is obvious that some institutions have entered the market to attract funds, but they are trapped as soon as they buy! This is a common problem encountered by many investors. It is important to master the skills of identifying whether a stock is attracting investors or driving up sales in order to avoid pitfalls and follow the market. Next, let's talk about some experiences in avoiding traps by following the Zhuang operation.
Firstly, the majority of institutional fundraising is conducted within the bullish trend. When individual stocks rise in the red market, trading is active, and it is easier for market makers to obtain chips when entering the market. During the trading session, it is necessary to search for stocks that are attracting funds from market makers among the individual stocks that have risen in the red market. Only with a large number of market makers can they attract funds, and when selecting stocks, the goal should be both a red market rise and a significant increase in volume. Stocks with significant volume increase can be viewed using the "volume ratio" ranking function in the market viewing software.
What are the common fundraising methods used by market makers? Each banker has their own set of methods for entering and exiting trading. Many of the techniques used by market makers to build positions are common within the industry. One of the most common methods used by market makers to attract funds is to boost stock prices through intraday fluctuations. When selecting institutions to use this method to acquire products, if the target stock rises within 5% on the day of intraday acquisition, immediate follow-up can be considered. If there is a significant increase upon discovery, it is necessary to observe and not chase after it.
When individual stocks experience a trend where market makers use "intraday volatility to push up stock prices and attract funds," there are generally several situations at the end of the day:
1、 After shaking and raising stock prices to attract funds, the stock price was quickly skyrocketed and even hit the limit up;
2、 The shock pushed up the stock price and attracted funds, but the stock price remained strong and rose to the close;
3、 After shaking up the stock price and attracting funds, the market weakened and the stock price fell in the afternoon, closing with a long upper shadow;
4、 Shaking and pushing up stock prices are the main traps created by the main force to attract investors and lure them to follow the trend. After the price rises, it suppresses shipments.
In the latter two cases, the stock price showed a trend of rising and falling in the afternoon, with a long upper shadow at the end of the day. And the stock price is likely to continue to decline and adjust on the next trading day. How to determine if the target stock is driven up by market makers' volatility to attract funds, and if bought on the same day, it will not be trapped? Years of practice have found that the general target stocks are truly strong market makers who attract funds, and the stock price can maintain a strong performance trend on the day of the fund raising closing. Only varieties that can maintain a strong closing performance on the same day are good short-term opportunities.