How does the real bottom banker let retail investors "cut their flesh"?

Why do bankers let retail investors "cut their flesh" at the bottom of a bear market? The main thing is that the banker must absorb enough cheap chips at the bottom of the bear market to launch a new round of bull market. If the banker cannot collect enough chips, it means that it will not be possible to make big money in the future bull market. . Therefore, letting retail investors cut the meat is a task that the banker must do in order to collect enough cheap chips.

But the problem is that retail investors are not fools. It is not that easy for them to buy at high prices and cut the meat at low prices. Therefore, the bookmakers have come up with various ways to allow retail investors to cut as much meat as possible in the bottom area, which is conducive to the development of a new round of bull market. So, how can the banker make retail investors "cut the flesh" out at the bottom?

First of all, we must first deceive technical retail investors into having a pessimistic view of the market outlook. In other words, the market maker must break all support levels in the stock index pattern. Even in the face of frequent good news, stock indexes or individual stock prices still rebound weakly and hit record lows repeatedly. This implies that "there is no minimum, only lower" for retail investors. If you don't sell out today, even if you want to sell out tomorrow, the price will definitely be lower, making it even more difficult for people to accept.

In addition, there are some bookmakers who like to ignite bullish hopes for retail investors, and then extinguish them all at once. After repeating this for more than a dozen times, retail investors will feel chilled and their confidence in holding shares will be shaken unprecedentedly. For example, if A shares have a double-bottom rebound structure, retail investors will always think that a big rebound is coming. When retail investors were full of confidence, the market makers once again broke the early double bottom golden cross pattern, technically showing a completely broken position. In this way, technical indicators are used to force technical retail investors to cut their profits.

Furthermore, the release of various bad news forces retail investors to cut their profits at the bottom of the bear market. It is still difficult to predict what bad news will be waiting for us at the bottom of A-shares in the future. But I have experienced the four-year bear market from 2001 to 2005. When the bear market bottomed out in 2005, bad rumors about the market were flying everywhere.

Some people say that the issue of share-trading needs to be resolved and A-shares will be fully circulated in the future, and the stock market will fall beyond recognition. There are also various rumors that A-shares are not standardized enough and need to be overthrown. In the future, the stock index will not only fall below the thousand-point mark, but may even fall to 800 or 600 points. The bad news is flying all over the sky to force retail investors to cut their profits.

Finally, why does the A-share market experience bullish and bearish trends? That is, retail investors mostly buy stocks at the top of the bull market or above the halfway point, and a long bear market can just kill the will of retail investors to hold shares. Generally, a bear market lasts for more than four years. If a retail investor buys chips at a high level, it will take many years to truly see the bottom of the bear market. Moreover, the bottom of the bear market will fall violently. After a few years, no matter how firm the retail investors are in holding shares, they will not be able to see the bottom. I am willing to buy stocks at a high price, but the stock price has already lost 70-80%. It will destroy the will of retail investors to hold shares over time.

If major institutions want to make money in the stock market, they can only rely on continuously raising the stock price to attract retail investors to take over the market at a high level, and then through the passage of time, the indiscriminate bombardment of bad news, and the complete technical trend. Using methods such as breaking positions to completely destroy the will of retail investors to hold shares at the bottom of the bear market. After getting cheap chips at the bottom of the bear market, a new round of bull market will begin. If the main institutions want to absorb enough chips at the bottom of the bear market, the two sides must have a cruel and thrilling contest.

How does the real bottom banker let retail investors "cut their flesh"? The author believes that in a speculative market like ours, the current market has completely turned into a bet between institutional bankers and retail investors. Only by letting a large number of retail investors lose money can the institutional bankers make money. In such a speculative market, the institutional bankers let retail investors "cut their flesh" at the bottom. "There are many ways to do it. The policy bottom started at 2449 points before the Spring Festival. At that time, in order to let more retail investors "cut meat" at the bottom, the Shanghai Composite Index only rebounded for two days when the policy rescued the market at 2449 points, and then went sideways. The market fluctuated for 5 weeks, followed by 6 weeks of downward pressure. When the index finally fell to 2449 points, 99% of retail investors were tortured to the point of collapse. Torture and choose to "cut the flesh" and sell at a low level.

This is not the most ruthless bookmaker. The most ruthless method of forcing retail investors to "cut off" is to push the stock to the daily limit. The banker takes advantage of its VIP channel to prioritize transactions and drives the stock to the limit. , in this case, retail investors cannot sell stocks even if they place orders every day. As long as the dealer does not cancel the order, no retail investor can sell the stock. When one day suddenly all retail investors queue up to place orders to sell, the dealer suddenly cancels the sell order and instead buys in large quantities. stocks, so all the retail investors were caught up by the dealer at a low level, and all were "cut off" and sold at the lowest level. Then the dealer began to pull the stock upwards. When the stock was pulled up, retail investors couldn't buy it even if they wanted to. When retail investors were able to buy, , the dealer starts to ship. When the market makers hit the limit, they let the listed companies release bad news every day, which made retail investors think that the listed company would go bankrupt and delist, causing all retail investors to have a psychological breakdown. Retail investors had to queue up at the lowest level to "cut off" and sell.

The current market is also in this situation. The stock market is below 2900 points on the Shanghai Composite Index. Originally, a large number of individual stocks had no room to fall. However, the main institutional market makers have tortured retail investors for 16 trading days below 2900 points. , although a large number of individual stocks are oversold and various technical indicators show that there is no way to fall, but the institutional market makers do not push up the stocks, retail investors have nothing to do. If they cannot stand the torture of the market makers and institutions, they have no choice but to "cut their flesh" and sell the stocks. When a large number of retail investors " When "cutting meat" sells stocks at the bottom, the stock market starts to rise again. This is the speculative gambling market. If retail investors want to make money, they must be very strong psychologically and be able to endure all the torture.

Let’s briefly talk about some of the techniques that dealers need to use when opening positions.

First of all, if a stock has been falling for a long time and the trading volume in the bottom area is very small, it means that the selling volume at this time is very small, and there are relatively few retail investors cutting the meat, and more people choose to do so. Hold still.

Because the loss is already very serious, it cannot be cut again. Therefore, if the banker wants retail investors to sell at this time, it must activate the stock nature, which means forming a wide shock at the bottom. For example, if you first push up the stock price, then drop it and then pull it up again, retail investors will selectively sell within a few back and forth.

More people choose to sell when the stock price rises, because at this time retail investors will feel that the stock price has risen and their capital will be restored. If they do not sell but are worried that the stock price will continue to fall, this is a basic retail investor psychology. question.

Another technique is to induce short positions and quickly make a low exit. This kind of rapid decline often breaks the position and triggers panic selling. It is also a commonly used technique.

Retail investors should identify this kind of operation to avoid losing money.

To answer this question, it may be inspiring to talk about a famous stock market maker story in the history of A-shares.

A certain stock has been selected by the banker. So the banker found the major shareholder and hoped that the major shareholder could cooperate in the entire process of stock price operation. The two parties discussed how it would work, and formal cooperation began.

The major shareholders also have seven aunts and eight aunts, right? Major shareholders also have their own confidants in the company, don't they? Such top-secret news spread between ears and mouths.

So: Zhang San is a close friend of the major shareholder, so of course he borrowed money from everywhere to buy the full position. Aunt Li is the mother of the financial director, and she has long since exchanged all her family's old savings for stocks. As for the company's chairman and general manager, let's not talk about it. The company's core people are the first to know the news.

The entire company seemed calm on the surface, and everyone seemed fine, but a huge desire spread among these people like an infectious disease. When will the company's stock double, no, triple, no, 10 times? Everyone is quietly calculating. If it doubled 10 times, then...

Don't tell me, it didn't take long for the stock price to really rise. Not to mention how happy it was.

However, there seems to be an invisible resistance above. As soon as the stock price reaches there, it will turn back, and it seems that it cannot break through again and again. Some people began to murmur, is this banker bad? Isn't it weak? Slowly, it first fell, and then fell to the limit several times in a row. At this time, news came from the Shenzhen Stock Exchange that a certain banker had liquidated its position, and the pledged stocks would be forcibly liquidated.

At this time, everyone panicked and cut off the meat one after another, fearing that they would lose everything if they were too late.

But in a place that was not noticed by everyone, these bloody chips were quietly sucked into several related accounts. A large number of cheap chips flowed like water into a mysterious place in the distance...

After a while, the stock price stopped falling and began to slowly climb. At this time, everyone turned a blind eye. , I just thought it might be the bookmaker who was trapped and trying to save himself. But the stock subsequently rose for more than half a year, with the stock price rising from around 8 yuan to a maximum of 126 yuan. Don’t mention the great profit the banker makes.

It is said that this is a true story, and the trader is the author of a great book.

This happened many years ago. But the inspiration never fades. I hope that in today’s stock market environment and stock market ecology, such a story will never happen again...

How do bankers let retail investors cut their flesh? Let retail investors feel the frustration of stock trading, feel that there is no hope for the stock price to rise, and feel fear; for retail investors, losses are not important, but losing hope is the most important.

Let me talk about examples around me so that everyone can understand more intuitively.

At a dinner party at the end of 2018, when we were talking about stocks, two friends around me liquidated their stock accounts in unison and claimed that they would never trade stocks again; (although these two friends have started to trade stocks this year) Continue to trade stocks). Why did they quit? I started stock trading in 2015, and by 2019, when I had lost money for four consecutive years, I was exhausted. I have really lost confidence in stock trading and see no hope.

In the words of my friend: Everything you buy will fall in 2018. They say there is only a bear market and no bear stocks, but when it comes to me, they are all bear stocks; in the past, if I wanted to make long-term stock price increases, it was rare. I don’t want to leave after making a profit, but I end up losing money again; it’s not easy to do long-term, so if I buy short-term instead, I’ll be trapped; the market seems to be against me. No matter what I do, I will lose money. I won’t do it. I am completely disappointed with the stock market. Whoever wants to do it can do it.

The above is the psychology of my friends who cut their meat at the low point of the stock market. You must know that they have lost money in the stock market for several years, and the position of their meat cut is also the low point of the stock market. The Shanghai Composite Index is around 2500 points. The index tested to 2440 points and formed a wave of rising market after New Year's Day this year?

I am greedy when others are afraid, and fearful when others are greedy.

This sentence is from the stock market god Buffett. It explains the weaknesses of human nature in the stock market. It also explains the operating logic of the stock market, and it also explains the basic logic of profit in the stock market.

I say that the vast majority of retail investors in the stock market lose money, and everyone must agree with this; in fact, another point is that the trading behavior of the vast majority of retail investors is irrational, and it must be done in the stock market. To make a profit; your trading behavior must be different from that of the vast majority of retail investors.

Summary: The way for bookmakers to attract funds at the bottom and make retail investors lose their positions is to intimidate. Welcome to send me a private message to learn more. Full-time trader in foreign exchange futures and stocks, founder of the asset management team. Welcome to pay attention and leave messages to communicate.

Before answering this question, we must first find out why the bankers force retail investors to cut their meat? When a banker makes a stock, the purpose is very simple, which is to use the smallest capital to achieve the maximum profit, try to get the cheapest chips, and then use the market trend and the theme trend to start to rise quickly, so that the stock can rise rapidly. In an instant, it gained the attention of market funds, and in the end, it was eliminated at a high position and locked in profits. So if the stock price has entered the bottom stage, how to get the last retail investors to cut off the stock?

Generally there are two ways. The first way is to create a "broken position" in the technical structure. The vast majority of retail investors trade stocks based on chart technology. Retail investors who can firmly hold stocks to the true bottom have a certain understanding of technology, that is to say, they have certain trading technical principles, and these technical principles are what they are most likely to understand. What cannot be tolerated is the structural breakdown. Once the structure breaks, technical retail investors will think that the stock has lost its momentum and cannot achieve an upward trend, so they will reluctantly cut their flesh. Therefore, if the floating chips still cannot be washed away at the true bottom stage, then the bookmaker will use technology to "break the position" to make retail investors feel that this stock has no hope, such as breaking through important structural points and important supports. Bits and so on, such technical flaws will make the final retail investors give up their chips and be forced to cut out the market.

The second way is to use the impact of news to interpret the fundamentals of individual stocks held through various articles or communication channels. This interpretation is often biased towards the negative, and if it is superimposed Factors in the entire market environment have put tremendous pressure on retail investors to hold shares. Retail investors may even think that this stock is a scam and will cut it off at all costs. This method can also allow bookmakers to obtain the lowest chips.

Anyway, in the real bottom stage, bookmakers will use various pressure methods to defeat the final confidence of retail investors in holding shares, thereby obtaining the cheapest chips. For retail traders, they need to have superb trading determination and patience to survive the difficulties, endure the torture, and finally eat the big meat with the dealer.

How does the real bottom banker let retail investors "cut their flesh"? In other words, if retail investors can stop their losses quickly, it is not considered "cutting meat", and the long-term pain is worse than the short-term pain.

First of all, before the real bottom comes, it must have gone through an extremely difficult process. During this process, most retail investors must have been tossed out, leaving some "die-hards".

Secondly, for ordinary retail investors, who can accurately predict the so-called real bottom? Maybe there is still an abyss ahead, and I have already made such a mistake before that led to a deep set, and it has reached the point where it is uncomfortable to cut or not to cut.

Furthermore, since there are some people who are willing to cut their flesh at the "bottom", they are already extremely disappointed. If we go to kill another wave at this time, there will be a group of people who will completely give up resistance and disarm, but also There will be some that are completely motionless, and this kind of thing is not the category that needs to be washed. On the contrary, give more sweetness at this bottom, such as the occasional big rise. Some people may lose hope after a few times and simply end it early. At this time, they may be able to understand the so-called "small loss is profit." .

Therefore, the more the dealer thinks the bottom is reached, the more cruel his methods will become. Whether the fluctuation in the account is small, the main reason is the psychological impact. The most painful thing is to have hope again and again, and in addition to the technical form and account funds, you can also use the role of public opinion to add fuel to the fire. After all, many retail investors still like to find some psychological comfort when they encounter such setbacks.

It is not others who let investors "cut their flesh", but the investors themselves. Perhaps, more investors disagree with such remarks, thinking that they were deceived by "bookmakers", "institutions" and "big investors" and were washed out. However, if you don’t “cut off” your flesh, who can force it? Therefore, it is not others who "cut off" the flesh, but oneself. So, how do the real bottom makers let retail investors "cut their flesh"? 1. There are now only a few bookmakers in the stock market.

Nowadays, when I hear investors talking about "bankers", I find it funny. Why is it funny? That is, there are really very few so-called bookmakers in the stock market now. Investors often don't believe it and think that stocks just have bookmakers. This possibility cannot be ruled out. There are also market makers, but there are really too few market makers. It is really not easy to survive. Under "strict supervision" and "heavy crackdowns", who dares to run the bank? In addition, if it is a market maker, "discerning" investors will know it at a glance. But knowing that it is a market maker, the so-called banker is extremely dangerous. 2. Smashing the market at the bottom makes investors "cut their flesh" and surrender.

This is a common method used by market makers, which is to carry out crazy smashing at the bottom. The decline in just a few days can reach 20 or 30, and the technical indicators and forms show a state of breaking out. When investors see such a situation, they often think that the price will continue to fall and choose to "cut the meat."

If you encounter this situation, you still need to look at the specific factors that caused the decline. If it is a major negative for an individual stock, then sell it if it is time to sell it. However, if it is an industry risk or market risk, it will not have much impact on the individual stock. From a morphological point of view, it may be a market maker's attempt to get more investors to "cut their flesh" and hand over more chips. 3. Investor psychology plays a role.

There are "fear", "fear", "panic", "nervousness", etc. in the psychology of investors. When the price of the stocks they hold drops sharply, they will be confused and even unable to control themselves. So, at the bottom, the investment value and dividend rate are obviously very good for the stocks held, but they choose to "cut off" because they are "too grinding" and "falling". The bottom line is that there is no more precise definition of the future of stocks, whether it is long-term investment or short-term speculation. Coupled with price fluctuations, psychology is at play.

The real bottom is piled up with the "hard-earned money" of many investors. Every A-share bear market has to fall badly enough for management to pay attention and introduce policies to rescue the market, and then there will be a new round of vigorous market conditions. Bankers are not as smart as we think, and can escape from the top and buy the bottom. In the bottom area, many bankers are trapped, and they can start a market round just by relying on the motivation of self-rescue.

From the end of October 2018 to the first quarter of this year, the market performed well, and it can be found that the theme stocks that were trapped by the bookmakers rose particularly fiercely, doubling at every turn. The last round of rising market can be called the main force's unwinding market. Since this year, the number of stocks that major shareholders have reduced their holdings has increased significantly. Because with the east wind of the market, it would be a fool not to reduce their holdings. They will only consider low positions if they fall back in the future. Overweight.

The real bottom is formed between "untying" and "cutting". Bankers who suffered losses due to wrong judgments on the market will look for themes to stretch the stock price and exit the market when the market rebounds. The retail investors who were deeply trapped saw the market rebounding but were still unable to get out of the trap. They lost confidence in the market and would leave the market.

A new group of bankers thought the end was over and entered the market to build positions. At the same time, the old bankers left, and the new and old bankers completed the replacement, while the retail investors who were trapped at the top were at the bottom. In the ups and downs of the market, if you can't hold on, you will be "washed out". The market can go far only if there are not many hold-ups. Why is the A-share bear market so long? It is precisely because of the torturous bear market that retail investors who have been trapped gradually gradually leave the market until the market can no longer do so, that is, the transaction amount reduces to a historically low range. That's the real bottom.

The banker's method of getting retail investors to hand over their chips is the application of knowledge in the field of behavioral finance. The banker is well versed in the psychological changes of retail investors and knows their behavior well.

For example, the upper chip concentration peak of a certain stock is between 8-10 yuan. At this time, the stock price is 4 yuan. The dealer raises the stock price to 7 yuan and sells the profit-making chips. , the stock price returned to 3 yuan, this time the dealer raised the stock price to 6.5 yuan, and then sold out the profit-making chips, and the stock price fell to 3.5 yuan. If this action was repeated several times, the top holding chips would think that the stock price could not return. If you choose to sell the stock at its own cost price when the stock price rises, the banker will naturally collect chips from retail investors.

Let’s talk about the conclusion first.

Bankers never "require" retail investors to cut their meat. Retail investors actually cut their own meat.

Retail investors do not understand how the banker operates, and making random guesses about the banker's trading techniques is actually a taboo in stock trading.

Many people misunderstand the mode of bankers collecting chips. Not all bankers have to let retail investors cut their flesh to collect chips.

As a trader with about 3 years of practical experience, I would like to briefly talk about the common techniques used by bankers to attract and launder funds.

Let’s look at the reality first.

Suppression of fund accumulation is also called passive fund accumulation.

In reality, as long as the market falls, even if the market makers are indifferent, there will be investors who panic and hand over their chips, and the market makers only need to wait and see.

Many people will ask, isn’t it the banker who suppresses the market? Isn’t it retail investors who are taking over?

This is not the case. The dealer's usual choice is to play dead, that is, place a large sell order and wait.

Many of the seemingly retail buying orders below were also bought by the dealers themselves.

When a day falls, the bankers can collect far more chips than retail investors. After all, when the market falls, there are far more retail investors who panic and cut their positions than those who boldly cover their positions.

In this case, we call it passive accumulation, because there is no need to pull up to get chips.

When will the bookmaker start to raise funds?

When the market falls, bankers pretend to be dead and find that the stock price will not fall. This balance of retail investors under a negative tone means that they have almost sold out their meat.

If retail investors’ willingness to sell is less than their willingness to cover their positions, market makers can only gain chips by raising prices.

Many times, bookmakers collect chips through intermittent pull-up test drives. The general choice for the pull-up point is to reach the moving average pressure level.

When the moving average pressure level cannot be broken through, some investors will choose to sell, thus suppressing the stock price again.

After a wave of chips was collected, the dealer pretended to be dead again, waiting for the rebalancing of retail transactions.

There are always some stubborn chips in the market that will not be easily loosened, and the dealers actually selectively ignore them.

After many active accumulations, when the selling pressure is getting smaller and smaller, the chip collection is almost complete.

We actually discovered that there is no inevitable connection between retail investors cutting meat and bankers.

The main reason why retail investors cut their stocks is that they think the stock will not rise again, at least not in the short term.

Most of the behavior of retail investors cutting their stocks is not because they no longer want to do stocks, but because there is no liquidity of funds and they hope to exchange their stocks for funds.

Most retail investors will quickly buy the next stock after cutting off the stock.

Therefore, bookmakers can also wear down the patience of retail investors through long-term sideways trading or back-and-forth shocks.

When patience is exhausted and the stock is not expected to rise again, it will be sold.

The behavior of retail investors cutting meat is related to the banker, but it is not necessarily related. It is purely an independent behavior.

Many people also have misunderstandings about the dealer's washout.

The dealer washes the market not to get chips, but to exchange chips.

For example, if a stock rises from 10 yuan to 15 yuan, because those who bought it at 10 yuan make too huge profits, it rises from 15 yuan to 20 yuan. The banker has great financial pressure and heavy selling pressure.

So the banker chose to wash the market around 15 yuan. The purpose of the market wash was to let retail investors get off the bus at 15 yuan, but the banker would not take over at 15 yuan, but to let retail investors who wanted to get on the bus take over.

After many days of shuffling, the dealer did not buy or sell, and the retail investors’ game of shuffling was over.

The bookmaker itself will control the position, especially in the high range, and will never take the initiative to take orders from retail investors.

When the cost of retail investors increases, the willingness to sell will decrease. On the contrary, when there is another breakthrough, the willingness to follow the trend and buy will be stronger, making it easier to pull up.

Generally speaking, only by more than doubling the stock price increase can market makers have a better shipping space and safety factor.

In recent years, the banker model has become less popular and has been replaced by the hot money relay model, which has lower risks, faster speed and higher efficiency.

This issue is a matter of different opinions and needs to be analyzed on a case-by-case basis.

But as a retail investor, there is a core principle, which is to protect the investment principal.

The amount of principal is the key to determining whether retail investors can make money in the market.

It’s not that retail investors can’t buy good stocks, but that they consume too much principal when they make mistakes.

If a retail investor buys a stock twice, once at the upper limit and once at the lower limit, his principal will be lost by 1.

Calculation formula: 100 1.1 0.9 99

But if retail investors choose to control the position and buy 500,000 each time, then there will be no loss of principal.

Calculation formula: 50 1.1 50 0.9 100

If you understand, you can understand the reasons yourself.

A full position will lead to a loss of capital liquidity. Cutting off the position and then buying another position will definitely cause a numerical loss.

Therefore, the fundamental problem for retail investors is not whether they should cut off their profits, but whether they should fill their positions in a gambling style.

There is so much to share about trading.