The stock market is unpredictable, and no investor can guarantee that they will always be invincible in the stock market. There are many excellent investors in the market, and investment strategies and methods can be used as references, but it is important to understand that even the essence of other people's ideas will always be someone else's, and the most important thing is how to find the most suitable for yourself in the vast sea of theories and transform them into your own investment style, which requires a long time of practice and accumulation. Therefore, after investors enter the actual combat, they must pay attention to the accumulation and integration of knowledge, constantly adjust the investment strategy according to their own preferences, and will definitely form their own investment style over time.
The dealer should pay attention to skills and art when sucking chips, the action of sucking chips is too coarse, it is easy to be noticed by other investors and disrupt the plan, and even directly affect the income of the banker; the method of sucking chips is too soft, but can not be sucked up as scheduled, often prolonging the time of sitting, the same affects the income of the banker, and even misses the best period of sitting, resulting in economic losses. Therefore, when the dealer borrows the general downturn, the long-term sideways shock, the holder is reluctant to settle in because of the little opportunity to make money, and the shareholder can not bear the torture of the dealer and leave the market to wait and see. This is exactly the method of "not killing you if you fall, dragging you down", and comparing tenacity with retail investors, so as to successfully complete the stage of absorbing chips.
When the market maker opens a position at the bottom, when the general trend rises, the market maker hovers sideways or rises (or falls) slightly, giving people the feeling of "no market maker". Retail investors saw that other stocks rose sharply, but the stocks they covered did not move at all, because of the strong psychology of getting rich, they were anxious, thus shaking their confidence in holding stocks, and they have thrown stocks to chase hot stocks.
When encountering the general trend of falling, the dealer is trying his best to support the price or slightly down (or rise), retail investors think that their stocks will also make up for the fall, so they go first as fast, avoid its set, take the small favor given by the dealer to grab the door, leave the market and wait, the dealer is happy to take over. Or when the general trend falls, the market maker first puts the stock price down a few points and then swings sideways, ambushes do not move, to meet the retail sell-off, and the end of the market basically returns to the original position. If the stock price is listed at the top of the list of decliners, it may be shipped, which is the leading variety. This way of sitting in the bank is often not in accordance with the rules of operation, strange tricks are frequent, so that investors are unpredictable, and the effect of opening a position is better. However, this kind of operation of the dealer has a certain risk, once it is improper, it will be cocooned and unable to cash in the profit.
Generally speaking, the basic chips held by the dealer account for 40% ~ 60% of the circulation, and the remaining part of the dealer is not sure that there is no other dealer involved during this period, and the usual concentrated "non-handicap" will cause a lot of trouble to the dealer if it is more than 10%. Often two market makers intervene in a stock almost at the same time, and the proportion of positions is about the same, and the absorption stage is very difficult. Often in the end, although the stock is good, it just doesn't rise, it fluctuates up and down, and the trading volume is sometimes large and sometimes small, and retail investors will be tortured to the point that they have no confidence in such stocks.
The following is a further analysis based on examples: changes in stock price and trading volume in the process of market makers absorbing and opening positions
The first type: from the price and volume observation to suppress the opening of positions
The trading style of market makers who open positions in a suppressive way is very fierce, and the stock price often rises and falls. The dealer uses the chips in his hand to squeeze down sharply regardless of the cost, and the price appears on the chart in a straight line or waterfall downward. Usually, the stock price falls sharply three or four points on the chart and then moves sideways at a low level, concentrating the main trading volume, and the market maker uses this platform to absorb chips. This trend has caused retail investors to completely collapse psychologically, and they have taken the best policy, scrambling to flee, while the bookmakers have laughed and accepted one by one. This collection method is more effective when the general trend is adjusted downward, or when individual stocks have large bearishness. However, the dealer is required to have a high degree of control, strong strength, and the decline is not too large, and the time will not be too long. On the one hand, excessive suppression will only cause more selling orders to pour out, and the chips will be much more than expected, and it will be difficult to control the situation, and once it gets out of control, the whole game will be lost. On the other hand, if it is substantially good, it will also be grabbed by other opponents, resulting in the loss of chips.
Market makers suppress the stock price downward, especially deep suppression, increasing the psychological burden of retail investors until they collapse, so as to seize the chips in the hands of retail investors. If retail investors are still shallow and the stock price has just fallen again, they can cut their positions and wait for the low point to intervene. If the stock price has fallen by more than 50%, you can't blindly kill it.
This method is usually used by market makers of listed companies or brokers, because this kind of concealed collection is not done through the secondary market, but through the subscription and placement of new shares in the primary market or the collection of listed companies and underwriters for the purpose of smooth allotment, so this method cannot be found in the secondary market at all. Sometimes several market makers look at a certain stock at the same time, and the amount of positions is equal, but neither party dares to act as the main dealer and pull up the stock price, and finally have to agree to transfer the position, so that one of them has a monopoly on the chips. In this way, all parties benefit. Since it is not traded through the secondary market, it is difficult for ordinary investors to detect this behavior on the market.
The chart shows an example of the trend of the Tibetan pharmaceutical industry. In order to obtain chips, the main force of the stock walked out of the rapid killing market, and suppressed it sharply at any cost, so that retail investors completely collapsed psychologically, and they rushed to flee one after another, while the bookmakers laughed and accepted one by one.
The second way: from the price and volume observation digging pits to build a position
Creating a short trap to absorb chips is a common trick used by bookmakers. Mainly from the technical side to create a short pattern, triggering the appearance of a stop loss order of technical speculators. When the stock price falls back to some important technical support levels (lines), the market makers use some of the chips that have been sucked in in advance to carry out crazy suppression, break through the support level (line), and try to create a panic atmosphere, so that the majority of investors have a fear of psychology, lest the stock price go down again. For example, short-term moving averages, pattern neckline levels, important psychological thresholds, trading intensive areas, early and even historical bottoms, etc., cause retail investors to feel that there is still a lot of room to fall, forming a stock price downing pattern, shrouded in a panic atmosphere, thus forcing retail investors to compete to cut their positions, and the market makers will smoothly eat a large number of cheap chips, and then immediately pull the stock price back above the support level (line).
The main characteristics of its price and volume are as follows:
The stock price has initially stabilized, forming a small platform trend and forming a dense trading area at the bottom. After the completion of the bookmaker's accumulation, it deliberately pressed downward to form two large black candlesticks, and broke through the dense trading area and hit a new low. At this time, a large number of panic orders poured out fell into the position of the bookmaker. However, the market maker did not dare to stay at the low level for too long, so as not to lose chips, so the stock price quickly returned to the support level, out of the local small V-shaped, W-shaped or head and shoulders bottom shape and other rebound patterns, the stock price maintained a period of false prosperity, and then continued to fall, this rebound for the continued decline to accumulate falling energy, until the inability to rebound when the stock price is likely to bottom. As long as there is a large rebound, the stock price has no hope of seeing the bottom, which is called a hopeless rebound or a rebound recession. The market maker uses this technical means to create a false pattern to lure retail investors to be deceived, so as to complete the task of opening a position.
Shown in the chart is an example of the trend of Haitong Securities. The stock basically completed the opening of positions with bad news. In order to further reduce the pressure of pulling up in the later stage, the platform of about 9 yuan was sideways, and then, the dealer further put on a posture to fall below the platform, creating the last short trap, and then quickly entered the upward trend.
Retail investors must not blindly chase the rise and fall, so as to avoid being the banker. It is necessary to carefully observe the handicap to see whether there is a reason for the fall, the current price level, whether the dealer escapes, whether the door is closed quickly after the fall limit, whether the volume is large or small, and whether the turnover rate is high or low, and then decide the direction of operation.
Finally, if you still can't tell the difference and want to try, then the best way to avoid risk is not to buy heavy positions all at once, but to choose the first batch of light positions to deal with sudden stock price changes. And if the follow-up market comes out, you can use the pyramid buying method.
First buy-in amount: After determining the timing of buy-in, you need to set the amount of your first buy-in. Generally speaking, the amount of the first purchase should be 30%-50% of the total investment amount to ensure the stability of the portfolio. In the case of high market volatility, the amount of the initial purchase can be appropriately reduced to reduce the risk.
The amount of the second purchase: After the first purchase, if the stock has an upward trend, the purchase amount can be increased appropriately according to the actual situation. The amount of the second purchase is generally about 30% of the total investment amount, which can be adjusted according to market conditions and personal risk tolerance.
Third buy amount: After the second buy, if the stock continues to rise and makes new highs, the purchase amount can be increased again. The amount of the third purchase is generally about 10% of the total investment amount, and it should be carefully adjusted at this time to avoid excessive chasing up.
Set a sell point: After buying a stock, you need to set a suitable sell point. In general, the sell point should be set at a position where the stock has risen too much or there is a clear risk signal. The specific selling point can refer to technical indicators, such as moving averages, MACD, RSI, etc. At the same time, it is also necessary to pay attention to changes in market sentiment, such as panic selling, and leave the market as soon as possible when there are abnormal phenomena such as panic selling. In order to reduce risk, the sell point should be flexibly adjusted according to market movements and personal risk tolerance.
In a nutshell, the pyramid method is a tentative strategy of opening a small position at the beginning of any stock, and then increasing it if the stock moves as you expect it to be in line with the "usual stock uptrend" described above.
And now many people like to enter the full warehouse, full of throwing out, in fact, this approach is not right, if it is a dragon head, then you have become a herding cow baby; if you are full of chasing at the top of the mountain may make you lose all your money, so no matter what the situation should not be full of warehouse to do, the best way is to buy and sell in batches, at the same time, remember: on the way to the price rise, the implementation of the high flat operation, not the fall of the dip.