Market makers attracting funds refers to the behavior of market makers intervening in a certain stock and continuously buying for a period of time in the stock market. Everyone should be aware of this, but I won't go into detail here. So, how do new stock market makers attract funds?

　　Ascending channel to attract funds

Upward channel fundraising refers to the practice of market makers quietly attracting funds during a slow rise in stock prices, without attracting the attention of investors, when the overall market is in a downturn. When there are large sell orders on the market, if the market maker accepts all orders, it will cause the stock price to rise and be noticed by others. Therefore, the market maker will adopt the form of buying more and selling less. After buying the large chips above with substantial buy orders for a few seconds, they will confirm with another computer to sell a very small portion of the chips below with substantial sell orders. This way, it will not cause a price increase and can attract cheap chips.

When only small sell orders appear in the upper tier, the market maker remains inactive and allows the stock price to fall freely until another large sell order appears. If the overall market situation is not good, sometimes there will be continuous large sell orders in the upper range, and the market makers will also absorb them, so the stock price will rise and a medium bullish line will appear on the candlestick of the day. At this point, the market maker can take advantage of the thin market in the lower range to lower the stock price with a small amount of chips at the close. The next day, they repeatedly bought chips at this price point.

As time goes by, there will be fewer and fewer circulating chips at a certain price point. When it is difficult to attract cheap chips, the market maker will slightly push up the stock price with substantial small buy orders, and then conduct a new round of fundraising. Due to the small trading volume, it generally does not attract the attention of others. However, over time, small-scale upward lines may still appear on the candlestick or trend chart and be noticed by others. The long-term stability of this stock price with a slight increase has led some retail investors to adopt a wait-and-see attitude and be unwilling to sell their chips at low prices. As it becomes increasingly difficult for market makers to attract funds, they will change their tactics.

Downward channel fundraising

If the banker wants to use the downward channel to attract chips, they need to first make a downward trend, which means they need to sell some chips. The chips thrown out cannot be too many, otherwise it will not be worth the loss.

When the stock price is in a downward trend, the market maker first takes advantage of the thin market during the opening period to sell a small amount of chips, causing the stock price to fall. At the same time, they place small buy orders in batches on the buy orders in the lower range. At this point, retail investors are generally influenced by the overall situation and the low price hints at the opening of the market, and they sell their chips one after another. The market makers quietly accept it. Then the banker puts up the bill and repeats this cycle.

Suppressing fundraising is commonly known as exploding orders. If the situation of the overall market or sector is very severe, or if a favorable air raid on a single stock causes panic, there will be no one to take over the downside. The Zhuang family will first place large orders in the next stall, and then sell them downwards with small orders, allowing those followers to watch as the buying orders in the next stall are gradually swallowed up by the selling orders. In fact, the market makers are gradually devouring their own stocks, with the aim of inducing a downward trend in stock prices. When most people see a decline in stock prices with trading volume, they can't control it and sell one after another, which is exactly what the market makers want.

This method is only applicable to stocks with poor market image and light main positions. If a stock with a good market image explodes, it is often overtaken by other major institutions, resulting in a failure to steal the chicken and a loss of rice. Stocks with heavy main positions should not explode, otherwise it will cause some followers or speculators to have lower costs than themselves, posing a threat to their future uplift and shipment.