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The heartfelt words of a retired trader: how the main force plays with retail in

There was a very popular TV series that I'm not sure if everyone has seen it, it's called "Wall Street East"! It tells the story of a number game in the financial market, as well as a game of human nature.

In fact, it may seem like an ordinary drama, but if you understand investment and know the rules of the stock market, you will find that the script of the TV series is nothing more than simple and exaggerated, but the essence is the same!

How do the main forces play with retail investors?

It is nothing more than using their own capital, the advantage of capital information, and their own control of human nature to set up the game.

Just like before making a momentum, the main forces will definitely do research in advance and make ambushes, collecting market chips bit by bit, without anyone knowing. After collecting enough chips, the main forces will start to perform.

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Many traders like to compare trading to war. Indeed, there is something to say from the perspective of operating capital management and fighting; but the difference between the two is also very obvious. War is a confrontation between two armies. It is very important to take the initiative to win. Victory always belongs to the most sharp attacker, but trading is to win in defeat, traders want to win;

Pay attention to the implementation and defense of their own rules and discipline, there is no face-to-face enemy, only the market that takes care of itself and the market that is not aware of your existence.

The easier it is, the more difficult it is, but the more eager you are, the less you achieve. In the development process of anything, there will inevitably be many decisions and influences from subsequent conditions. Speed is harmful, slowness is beneficial. Therefore, the slowest accumulation is your fastest way to make a profit, believe that the power of compound interest is huge. Compound interest, sometimes at the algebraic level, sometimes at the geometric level, has infinite energy, like a stone on a bean sprout. Let yourself be patient and see this huge harvest.

With the expansion of time and the accumulation of huge wealth, because the starting point of thinking and reality is different, you will feel that when the real huge harvest comes, you can actually feel that it takes some time to have huge wealth, but it is really fast and safe.

Human nature is the key to the success or failure of trading, and it is also the foundation.No matter how skilled a trader is, the accuracy of their market predictions can never reach 100%. What should I do? Technical deficiencies can be compensated for by principles, but if a trader has well-established principles that are not strictly followed in trading, they are useless and meaningless.

Why can't some principles be implemented? This is a problem of human nature. People who have engaged in trading practice all have a common experience: discussing on paper and using real guns are two different things.

Unveiling the 6 major tricks of stock market manipulation by market makers, don't be fooled again!

In the process of their manipulation, in order to ensure the smooth progress of operations and obtain substantial profits, market makers often use some tricks to deal with retail investors, blinding their eyes to achieve the market makers' goals. The main types are listed as follows:

1. Pump and dump: This trick makes retail investors chase high positions to build positions at high prices, and then get trapped at high prices. In order to realize profits, after a period of rising, the market maker will slowly push up the stock price to create the illusion that the price will continue to rise strongly, confusing retail investors to participate and follow, in order to achieve the goal of the market maker's complete exit. Characteristics: The market maker slowly pushes up the stock price at a high position, with a divergence between volume and price, followed by a break and a decline.

2. Feigning weakness to gain strength: Before engaging in long positions, the market maker first suppresses the price to create a certain illusion, thereby ensuring that their own positions are sufficient, and leading many retail investors into traps and traps. This move requires the market maker to have strong capital as a backing, and the technique is relatively fierce. Characteristics: During the normal operation of the stock price, it suddenly reverses and suppresses, falling straight down, causing the chips above to be trapped and cut meat. Then it stops falling and rebounds quickly, allowing the market maker to pick up cheap chips.

3. Insider trading: The market maker collaborates with the listed company, using news that is not yet known to the outside world, to buy or sell first, and then disclose the company's true situation, causing fluctuations in the stock price, and then sell or buy back to achieve the market maker's goal. PS: Judging this move requires a certain understanding of the fundamentals of the stock, we just need to understand it!

4. Shaking the warehouse: After successfully pushing up (or down) the price, the market maker performs a reverse operation, which can reduce investment risk, stabilize the profits that have been achieved, and confuse retail investors. It can also timely change direction to further push up (or down) the price. When there are other opponents (hot money or large investors) in the market, and their strength is relatively large, they can also timely turn against the "enemy's camp" to disrupt the opponent's layout and lay the foundation for the final victory. Characteristics: Before the market maker carries out the next operation plan, the stock price suddenly fluctuates greatly up and down, causing those with unstable mentality to exit, and also disrupting the plans of other large investors inside, thus smoothly carrying out the next operation.

5. Knocking: In order to manipulate the market in the future, confuse retail investors, and create false technical lines and other motives, the market maker carries out internal transactions on several positions of the market maker's warehouse (for example, one side hangs a low price to sell, while the other side buys at the market price or at an extremely high price). Characteristics: This move is often used by the market maker to absorb and exit, we need to pay attention to understanding the market maker's position and motives, in order to avoid being deceived.6. Suppression and Selling: After the market manipulator has driven the stock price to a considerably high level, they "dump" all their shares onto the market, forcing the stock price to plummet in a straight line without any rebound or consolidation, completing the selling in a ruthless and vicious manner. After profiting, the manipulator forces retail investors to be completely wiped out and trapped in their positions. Characteristics: This move usually occurs when the stock price has risen to a very high level or when the manipulator has already detected that risks are imminent, leaving retail investors with no way to respond.

Different manipulators, considering their own interests, may either form alliances or compete with each other, but in the end, it is the retail investors who suffer the most. Today, I am sharing with you several common deceptions. The manipulators' tricks are endless, and if we want to survive in the market, we must have our own objective opinions and the ability to manage risks. Therefore, retail investors should pay particular attention to the manipulators' trading techniques and capital movements, and organically combine the fundamentals, technicals, news, and market trends of the stock market for analysis and judgment, and operate in a timely manner. Only in this way can we achieve stable profits in long-term trading.

The Essence and Rules of the Stock Market

In any industry, as long as one is good at grasping the essence of the issue, the hope of success will be greater. The essence of the stock market: This market is not a market that can be fully invested in; everyone comes here for profit speculation, and the speculative element is too large. That is, this market is a speculative market. When we enter this market, we should focus on speculation and view the market from a speculative perspective. In the operation of the Chinese stock market, the following rules should be established and adhered to in terms of concept.

1. Risk First Rule

Most investors often think more about how to make money and think less about how to prevent losses. In a speculative market, risk control should be the top priority. If you can't avoid the risks of speculation, you can't earn the money from investment. Therefore, the correctness of concepts and methods should be based on risk control. Whether you make money or not, the first thing to consider is how not to lose money. When there is a risk, avoid it first, and rather miss the opportunity than take risks. Only by ensuring that there is no loss can we talk about making money. When there is a risk in the overall market and individual stocks, one should avoid it first and operate when the opportunity is greater than the risk. Do not do it when you can't understand or are not sure, and be determined to do it when you are sure. It is impossible to grasp all the opportunities in the market.

We should remember the following content.

(1) If the probability of making money is high and the probability of risk is low, it is correct; if the probability of making money is low and the probability of risk is high, it is wrong.

(2) If the probability of making money is high and the probability of risk is also high, it varies from person to person and from market to market; it is good when the market conditions are good and the individual's foundation is deep.Translate the following passage into English:

(3) There is no need to operate when the probability of making money is small, and the probability of risk is equally small.

Remember: There are no magic tricks in the stock market, only a relative technique that combines concept, method, and psychology.

2. The Law of Quantitative and Qualitative Change

The development of things is always from quantitative change to qualitative change. The change in the trend of stocks is a process from quantitative change to qualitative change. The fundamental reason for the reversal is that the transformation of the quantity change between the bulls and bears has reached an extreme point. The reason why the trend can be maintained for a certain period after it is formed is due to the release process of the strength of the bulls and bears.

(1) In the process of accumulation of the bull's strength (consumption of the bear's strength), pay close attention to the turning point of qualitative change and intervene in time.

(2) In the process of the bull's strength release (accumulation of the bear's strength), pay close attention to the fatigue of the bull's strength and reduce positions at high levels.

(3) When the transition from bull to bear occurs, it is necessary to be empty to avoid risks in time.

(4) In the process of the bear's strength release, as long as the bear's strength has not been completely released, try not to participate.

Note: The transition from quantitative change to qualitative change is also the process from gradual change to sudden change.3. The Rule of Whole and Part

(1) The overall market and individual stocks represent the relationship between the whole and its parts.

(2) Whether it is the overall market or individual stocks, they operate in a certain phase of the stock price cycle. The cycle is the whole, and each phase is a part. Both the overall market and individual stocks go through the processes of bottoming out, rising, peaking, and falling. Each of these processes can be further divided into early, middle, and late stages. When trading stocks, we cannot rely solely on a few candlestick lines or intraday charts for operation. We must first determine which process and stage the individual stock is in. Only by doing so can we truly understand whether the stock is operable, whether it is suitable for medium-term or short-term operations. Otherwise, if we blindly enter or exit, and one-sidedly understand the operation of the stock, we are very likely to be deceived.

4. The Rule of Probability

To make money, one must consider the probability, and must achieve taking small risks, taking few risks, taking no risks, losing little money, losing a small amount of money, not losing money, making a lot of money, making steady money, and making a lot of money. Therefore, it is better to do less and not take risks, and it is better to lose several small profits as long as one can make a big profit once.

To improve the probability of success, you can do the following points.

(1) Do not treat minor issues or trivial matters as major issues or principle issues. Do not treat good news released at high levels as good news, and do not treat bad news released at low levels as bad news.

(2) Do not regard individual phenomena as universal phenomena, and do not apply the experience of trading a certain stock to other individual stocks.Translate the following article into English: (3) For those with low probability and uncertainty, just watch and do not act. Do not engage in transactions that do not conform to the concept and trading system, only earn rational and reasonable profits, do not gamble, and do not rely on luck. Adhere to discipline and keep a cool head.

It is difficult to survive in the stock market if you cannot establish a concept suitable for yourself and build a trading system with a higher probability of success, and cultivate a habit of considering problems from the perspective of the probability of success.

When following the big players, pay attention to the following six points:

1. Understand the nature of the main force

First-class main forces create opportunities and themes, second-class main forces pursue opportunities and imitate themes, and third-class main forces wait for opportunities and themes. Therefore, when following the big players, it is necessary to first understand the nature of the main force, whether it is a fund, institutional main force, or speculative capital main force, whether it is a long-term, medium-term, or short-term main force, etc. Only by understanding the nature of the main force can one roughly understand its methods and characteristics, so as to follow it more effectively.

2. Maintain independent judgment

The main force must torment investors to obtain chips from them; it must strike investors to make them exit halfway; and it must incite investors to willingly take over at high prices. Therefore, investors should always maintain independent judgment, be aware of the deceptive nature of the main force from beginning to end, and remain vigilant about any concepts, news, charts, indicators, etc.

3. Maintain a stable mentality

Before market opportunities arise, investors need to have enough patience to wait; when market opportunities come, investors need to carefully distinguish between true and false; when confirming the emergence of market opportunities, investors should be able to participate decisively; when market opportunities are negated, investors should be brave enough to cut losses and exit; when there are no opportunities in the market, investors should be able to restrain their greed and leave quickly.4. Familiarize with the tactics of the main force

Investors should understand the common tactics of various main forces during their learning phase, and also become familiar with the current main force's performance characteristics and commonly used methods in actual combat. Only by knowing oneself and the opponent can one win a hundred battles. Since the main force is in the dark, as long as it uses some tactics slightly, the mentality and the tightness of the chips of the retail investors are clear at a glance, so the main force has a much higher chance of profit.

5. Adopt suitable tactics

If the investor has a large amount of capital, it is best not to invest in a single stock, as the main force will recognize it; if the capital is not large, investors can adopt guerrilla tactics, make full use of the advantage of freedom to enter and exit, and follow the main force closely to take a few main rising wave profits.

6. There is no need to watch the market every day

If it is not short-term trading, investors do not need to watch the market every day. Because the main force knows the greed and fear of investors very well, the conspiracy of the main force needs to be conveyed to investors through the market, so as long as they watch the market every day, they will inevitably be worried about gains and losses. But in the face of a person who does not look, does not listen, and is not anxious, all its performances are futile, and in the end, the stock price will go through its course according to the law of buying low and selling high.

Tai Mountain does not stand on good and evil, so it can achieve its height; the river and sea do not choose small help, so they can achieve their wealth. The ups and downs of the stock market, after extensive learning and self-reflection, can be a teacher. Share what you know and learn, take all beings as a mirror, and take all appearances as a teacher, while improving your own realm, and encourage each other with all retail investor friends!