Many investors have only a partial understanding of stocks when trading. It is important to know that being in the stock market means having some knowledge about stocks. Especially when it comes to placing orders with market makers, it is important to understand their techniques for placing orders, otherwise it is easy to trap oneself.
What are the techniques for stock market makers to place orders?
1. Large order tray
Investors usually assume that the number of buyers is greater than the number of sellers, and therefore believe that the stock's tray power is strong. If there is more bullish than bearish sentiment, then the desire to buy is strong enough. Therefore, market makers use investors' psychology to artificially carry out large order tray and suppression behavior. The banker often places a large number of buy orders at the buyer's position, even several times larger than the total number of sell orders, which is an obvious large order tray.
2. Large order suppression
The banker often places a large number of buy orders at the seller's position, even several times larger than the total buy orders, which is a clear suppression of large orders. The purpose is to undermine investors' confidence and reduce their willingness to buy.
3. Tray shipment
When a banker uses a large order tray, investors' reaction is that the stock is strongly supported by large orders from the banker. They simply think that the stock will not continue to decline, and they are eager to buy at the bottom. Due to the trading rules of the stock, if they want to buy the stock urgently, they need to report the price above the banker's large order to make it easier to trade. And the market makers use this to quietly sell.
4. Suppressing fundraising
When a trader presses down on a large order, the investor's reaction is that the trader presses down on the stock, simply thinking that the stock will not continue to rise, and they are eager to flee. Due to the trading rules of the stock, if they want to sell quickly, they need to report the stock price below the trader's large order in order to make it easier to close. And the banker quietly attracts funds through this.