Please tell me how market makers generally control (lower or raise) stock prices?

This article is excerpted from the Silver Pimple Forum liaotian197600. It explains very clearly some methods commonly used by market makers to control stock prices. I believe it will be helpful to you.

The usual trading techniques of mature banker traders

As a mature banker trader, his corresponding trading ideas will be relatively flexible and not rigid. Because the stock market is changing rapidly, if your trading techniques do not adapt to the trend, you may easily become passive. Although sometimes there are situations where the simpler and worse the tactics are, the more brilliant the results are, but the essence is just that there is no tough opponent. A detailed analysis shows that banker traders, while using some common trading techniques, will occasionally use some special skills, and the details are as follows:?

1. Destroy the banker. If someone hits the banker during the purchase stage, he should immediately and decisively raise the stock price. If the other party drops, he will take all the profits, thereby speeding up the purchase; if the other party grabs the goods, wait and see for the time being. However, it depends on the other party's financial strength and purchase quantity. Adjust your operating strategy. ?

2. Freeze chips. The awareness of shipping during the pull-up stage cannot be relaxed. At this time, you only need to use a small amount of funds to push up and create an obvious regular trend. You can attract a lot of buying orders to enhance the market buying momentum, and then suddenly change the original trend. Carry out counter-trend distribution regularly, thereby accelerating its own distribution while also better freezing a large part of the short-term chips in the market. ?

3. Posturing. When encountering a sharp market drop, normal operating techniques no longer apply. If funds are sufficient at this time, you should decisively and resolutely raise the stock price against the trend in order to minimize the selling pressure, and wait until the market stabilizes before finding other ways to escape; if funds are insufficient at this time, you should Place large buy orders at multiple prices, and then sell them with all your strength, in order to reduce costs and reduce selling pressure. However, if the market stabilizes in the late market, you must decisively raise the stock price, or raise the price again the next day. Jump short and open high to boost the stock price. ?

4. Borrow pictures. If the trend of a certain market maker has attracted much attention from the market in the early stage, you can imitate the trend of the market maker when operating the stocks you control. This will easily lead to a large number of follow-up orders. However, in the later critical stage, you should be exaggerated Use this trend to achieve the real purpose of accumulation or distribution. For example, in 1998, Shenzhen Jinxing took advantage of the diving trend of China Textile City to complete the earthquake warehouse, and in 1999, Great Wall Electric took advantage of the short squeeze trend of Chinese-owned industries to complete shipments. These cases are classic and worthy of repeated analysis by those who come after the event. The final result of the factors that affect the market is the trading behavior of investors. And the trading behavior of investors is ultimately realized through trading volume and stock price. Therefore, the volume-price relationship covers all information in the market. The state of the volume-price relationship is not only a realistic reflection of market movements, but also indicates the future development trend of the market. To study and judge market trends, we must grasp the essence of the volume-price relationship. At present, most investors are keen to use technical indicators to study the market outlook, but few can predict accurately. This is because technical analysis indicators, as a form of expressing the relationship between volume and price, are difficult to fully and objectively reflect the essential characteristics of the relationship between volume and price, and are very one-sided. Therefore, only by comprehensively and correctly grasping the essential characteristics of the volume-price relationship can we accurately grasp the market's operating trends. The market operation has the following rules in the relationship between volume and price:

1. A harmonious relationship between volume and price is a necessary condition for the market operation trend to be maintained. The harmony of the relationship between volume and price is mainly reflected in two aspects:

First, when the price rises, the volume will increase, and when the price falls, the volume will decrease. Violation of this law will cause the market trend to change.

The second is that the relationship between market trading volume and stock price within a certain period is relatively stable, that is, the growth and decay of the two should be synchronized. If either party changes too fast, it will lead to A reversal in the direction of the market. For example, on June 25, 1999, the Shanghai Stock Index continued to rise after 28 trading days, and the trading volume reached a huge 44.313 billion yuan. On June 29, the Shanghai Stock Index hit a new high, but the trading volume failed to continue to increase, only 34.297 billion yuan, which was contrary to the In line with the above-mentioned law of rising prices and increasing volumes, the Shanghai Stock Exchange Index has fallen sharply since June 30, 1999. We call this phenomenon of rising prices and decreasing volumes a volume-price divergence. This is one of the important signals that the market has peaked.

Another example is February 14, 2000, when the Shanghai Stock Exchange Index soared 140 points, while the trading volume was only 25.684 billion yuan.

Compared with the previous trading day's trading volume of 22.548 billion yuan, it was only a 20% increase. This phenomenon of a sharp increase in the stock index and a small increase in trading volume also violated the synchronous growth law in the above-mentioned volume-price relationship law, which resulted in the Shanghai Stock Index's recent decline. A month of sharp shock adjustments.

2. The peak value of trading volume and the peak price of stock price occur together, with the former coming first and the latter following. If the bull market wave pattern of the market is first slow and then fast, then the peak (top) of the stock index will appear immediately after the peak trading volume appears? On the contrary, if the bull market wave pattern is first fast and then slow, then after the peak trading volume appears, the stock index will The peaks (tops) appear after some time has passed. For example, the bull market band in January and February of 2000 was slow at first and then fast. On February 17, the Shanghai Stock Exchange Index hit a high of 1,770 points, and the trading volume increased to 49.913 billion yuan. The peak of the trading volume was almost the same as the peak of the stock index. appear simultaneously. The bull market band from the end of March to early June 1998 was fast first and then slow. The peak of trading volume appeared on April 9 (12.492 billion yuan), and the peak (top) of the stock index was 1422 points on June 4, 1998. It just appeared, 40 trading days apart.

The above-mentioned volume and price rules are not only effective rules for us to judge the trend of stock indexes, but also a magic weapon for us to see through the actions of individual stock market makers. For example, a certain stock continues to shrink and rise. Or a sudden increase in trading volume during the continuous shrinkage and decline of a certain stock indicates that it violates the law of rising prices and increasing volumes or falling prices and decreasing volumes, so it must be done by the banker

The banker makes the move There are generally several stages in the process, such as buying stocks, washing the market, pulling up, and distributing. What everyone is most concerned about is opening a position. If a certain stock is just in the stage of building a position, getting involved at this time is like eating an unripe green apple, which is sour and astringent; If a stock is at the end of its rise, buying it at this time is like eating lychees that have expired and taste dull. Understanding the characteristics and cycles of the main buyers will help you pick them in time when the stocks are about to "ripe and fall".

Everyone has an intuitive feeling that stocks with good performance have a long period of low consolidation in the early stage, and the pull-up period may only last a dozen trading days. The reason is that the main force takes more time to attract goods, and the normal state The buying period lasts for about a quarter. Specifically, the time it takes for a certain market maker to attract stocks is closely related to the size of the market, the market maker's operating style, and the overall trend of the market. Investors can choose different stocks. Judgment based on the following methods:

1. For newly listed stocks, you can pay attention to the turnover rate within a few days of listing, especially the turnover rate on the first day of listing. The large trading volume on the first day of listing should be the intention of the market maker. Bankers generally use the first day of listing to make large purchases and complete most of the tasks of building positions. Southern Building Materials (0906) has only 36 million shares in circulation. On the day of listing on July 7, 1999, 25 million shares were traded, with a turnover rate of 70%. In the first three days of listing, 51 million shares were traded, with a turnover rate of 145%. Such a large change of hands in such a short period of time is unimaginable without the intervention of market makers. The stock slowly rebounded after consolidating at a low level for several months. Investors can further confirm that the market maker has completed the position building within a few days after listing, and the rest is how to choose the right time to pull up. Tibet Pharmaceutical (600211 market, information, comments, search), which was listed almost at the same time as Southern Building Materials, has a trend.

2. There are usually some characteristics when a position is completed. For example, the stock price first builds a platform at a low level and then slowly moves out of the bottom, and the moving averages gradually change from being entangled with each other to being arranged in a long position. Especially if a heavy-volume Changyang bar breaks through the consolidation zone, it can further confirm that the position building period is completed, that is, Shen Tianjian (0090) was listed on July 21, 1999, with a turnover rate of 65% on that day, and then slightly later. After falling back, it has been trading sideways between 17 and 19 yuan for several months. Recently, the stock has slowly bottomed out, and the trading volume has continued to increase. The position building period has been completed.

3. The length of time for the stock to consolidate from its low level. Judgment. Generally speaking, the longer the consolidation lasts, the more time the main force has to calmly enter. For example, Tibet Holy Land (600749 Quotes, Information, Comments, Search) has repeatedly consolidated in the Hao position since January, and has experienced large volume increases several times during this period. In January, March, and June of 1999, respectively, the price and volume coordination has now appeared to hit the top of the overall box, indicating that the preliminary work of building a position is well prepared and the main force is eager to try.

Investors should note that the completion of the main position opening does not mean that the price will rise immediately. The market makers usually take advantage of the strength of the market to push up the price. The main force that has completed the position usually takes the posture of repeatedly consolidating along a certain price and waits. When it comes to raising prices, for example, Jiangquan Industrial has been trading around 13 yuan for several months last year. Due to the weak market trend, the main force has not found an opportunity to "take action".

In addition to finding banker information in the public information released by listed companies, we can also find banker-related information from public information released by stock exchanges. The dealer sees it more clearly and thoroughly. The China Securities Regulatory Commission stipulates that after the end of each trading day, the Shanghai Stock Exchange and the Shenzhen Stock Exchange should publish the list of buying and selling brokers and the trading amount of the top five stocks with an increase or decrease of more than 7%. Investors can use the stocks provided by the brokers If you find this information in analysis software or in some newspapers and magazines that announce sales, if you are interested and make full use of the information for comparison and analysis, you can determine the list of potential market makers of certain stocks and the shareholdings or shipments of these market makers, and You can dynamically observe the long-short distribution and long-short battles of certain stocks, so that you can be aware of them and be well prepared.

For example, we can easily know the daily limit of the leading stock (600630) from the market data released by the Shanghai Stock Exchange on March 20, 2000, and then find out the information published by the Nanjing Regional Sales Department of China Southern Securities on that day. Many transactions were made, such as Southern Securities Nanjing’s transaction volume of 49.29 million yuan (ranked first), Southern Securities Nanjing Jinqiao’s transaction volume of 18.11 million shares (ranked second), and another Southern Securities Nanjing business department’s transaction volume was 4.94 million yuan (ranked fifth). Therefore, it can be preliminarily determined that the main force in the leading stock speculation at that time was Southern Securities. Isn’t the face of such a big banker exposed to the public? Doing stocks is sometimes like fighting. In order not to be known by many investors, bankers often use various covert methods to cover their tracks. Therefore, investors must use various methods to detect and explore. In addition to some publicly disclosed information introduced above, we can also find some clues about the banker from the time-sharing records of individual stock allotment payments. For example, Hops (600090) started ex-rights and payments on March 2, 2000. From March 2nd to March 15th, during the payment period, we found that large-scale payments were made from time to time. Such large amounts of payment are definitely not made by medium and large investors. From this, we can conclude that the banker of this stock is making the payment. , we can indirectly calculate the approximate position of the market maker of the stock from the concentration and large amount of payments. This confirms that the stock has Dazhuang's exploration. As expected, hops entered the main rising stage during and after payment. This rise must be caused by the dealer's pull. In this way, a stock market maker has surfaced again. As long as you are a conscientious person, are you worried about not being able to find a strong market maker?

In a consolidating market, technical support levels can be used as reference stop loss points. Common technical forms include box, head-and-shoulders, triangle, M-shaped, etc. When individual stocks (market) form the above-mentioned forms, the longer the construction time, the greater the effectiveness once a technical breakthrough is made. In actual combat, for example (600207) Ancai Hi-Tech did a two-month box consolidation in the area of ??12-14 yuan from September 10 to November 19, 1999. On November 22, the stock price broke through and fell. Pulling out the long yin and breaking through the bottom of the box, the loss should be stopped; another example is (0018) Shenzhen Zhongguan, which constructed a standard M pattern on June 9 and June 30, 1999, and the stock price fell on June 30 If it crosses the neckline downward, you should stop the loss and exit, thus avoiding future losses. Secondly, when setting stop loss points, you should consider the overall market factors. When the market plummets, individual stocks cannot be spared, and most people are deeply trapped. At this time, patience is golden, and the stop loss point is lower than usual. The market has been falling all the way, and there is a possibility of a bear market. The stop loss point should be high. If you don't wait for a rebound, you will admit your mistake and get out. The market is consolidating or is strong, and the stop loss point can be relatively low because the possibility of rising is greater. If the market is mainly dominated by individual stock prices, you can think less about the impact of the broader market. Third, the timing of market entry should be considered when setting stop loss points. If you buy after the price has more than doubled, the stop loss point should be high, and you will have no regrets even if you are shaken out. Because as long as it really turns down at this time, it will be difficult to return to this price in a year and a half. If you enter at the beginning, the stop loss point can be set lower. Because the main force may wash the market after pulling up. Since you have bought it and are optimistic about the medium and long term, you can accompany the main force to wash the market. Fourth, stop loss point setting should be based on different types of stocks.

Generally speaking, blue-chip stocks, high-priced stocks, and large-cap stocks have higher stop loss points than poor-performing stocks, low-priced stocks, and small-cap stocks because the main force's ability to control the market is relatively weak. The former's decline often occurs in the form of a negative decline, and the speed is slow; similarly, the decline speed is slow, and the rebound speed is also slow. Therefore, once a trend turning signal appears, it is best to give up taking chances and stop the loss in time. For example, (600104) SAIC Motor and (0800) FAW Car had a platform break in late September 1999 and fell below the mid-term trend line, which was difficult to reverse; on the contrary, the latter rose and fell very quickly, and the main force was to raise other investors The cost of holding funds is very strong, and it is not surprising that the market has continued to fall to the limit. For example (600793) Yibin Paper, there was a strong washout on 12th last year before pulling up, and then there were two major shocks in June and September. Since the share capital is small and the stock is active, in this case, the stop loss point should be set relatively low. In fact, there is no fixed formula for stop loss. The important thing is to comprehensively balance various factors according to the specific situation, and set the stop loss point according to your own risk preference. After setting the stop loss point, you must have the determination and perseverance to execute it. The purpose of setting the stop loss price is to overcome the luck and hesitation in human nature and avoid emotional interference. Of course, the stop loss point is not omnipotent, and sometimes it is wrong, which requires us to have a normal mind. If you really do the above points, then you are not far away from victory!