Many people have always been very curious about the market makers in the stock market.

Since the opening of the stock market in the 1990s, market makers have always existed and have become a force in the stock market that people both love and hate.

Stocks without market makers are ignored, and buying them often leads to losses.

Stocks with market makers have good opportunities for appreciation and profit effects, but buying them still often leads to losses.

The market maker is like a wolf; if you don't follow him, it's hard to profit, but if you do follow him, he will turn around and bite you.

In a bull market, the market maker operates stocks to let the buyers pay the bill for him.

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In a bear market, the market maker operates stocks to let the followers pay the bill for him.

It seems that the market maker rarely loses money.

In reality, the market maker does indeed rarely lose money.

In fact, the market maker is not as mysterious as people imagine. They just have more capital than retail investors, more information, and are a financial force that makes money through operation.Even if the dealer is decrypted, it is still very difficult to defeat him, because there are too many complex and intertwined things.

Therefore, many large funds, when they see certain stocks occupied by the dealer, often choose to take a detour.

But retail investors are different, they always hope to make money by following the dealer.

Today, let's decrypt the dealer who rarely loses, and see how he operates a stock.

First, select the stock.

Dealers don't choose stocks casually. Before they enter a stock operation, they will do a lot of preparatory work.

After all, there are thousands of weak waters, and only one scoop is taken.

Dealers only need to finally lock in the stock of a listed company.

The first element of the dealer's stock selection is the circulating chips, or the circulating market value.The market capitalization should match the scale of the manipulator's funds to ensure that the manipulator can effectively influence the listed company.

The second element is to see if there is an old manipulator entrenched, because the manipulator also needs chips to enter the market.

The manipulator is most at ease when the chips are in the hands of retail investors, because it is relatively easier to ask retail investors for chips.

The more dispersed the chips are, the greater the manipulator's control.

The manipulator often chooses 3-5 stocks, with main choices and alternatives.

Because they also have the second step, which is also very important.

Second, pay a visit.

The so-called visit refers to going to the listed company for an inspection.

This inspection has many meanings, but the result is the same, that is, the manipulator must know the root and bottom of the listed company.

The root and bottom here is not only the company's main business, performance, and so on, but also the actual controller, etc.They must ensure that the actual controller can stand on the same side as themselves, being comrades in the same trench.

This cannot be strictly called joint market manipulation, but in terms of information, there must be mutual exchange and sharing.

Voting also has two types.

One is the market maker's initiative to vote, they need to find listed companies.

The other is the listed company, actively looking for market makers, the intermediary finds the market maker, and then the market maker goes to vote.

Regardless of which type, the final result is the market maker and the listed company negotiating, and both parties achieve a win-win cooperation.

For the listed company, the operation of the market maker will effectively stabilize the stock price.

This allows the market value of the listed company to increase to a certain extent, or be overvalued, which is very beneficial for the major shareholders to reduce their holdings.

Even if the shares are pledged, the money that major shareholders can pledge will also be more.

Including the very popular convertible bonds, once the market value is overvalued, the value of convertible bonds will also rise.Of course, it is not ruled out that listed companies may collude with market manipulators to engage in insider trading.

In summary, the solicitation of votes is the key to achieving a win-win cooperation between market manipulators and listed companies.

Thirdly, the entry of the manipulator.

The entry of the manipulator is often very brutal.

The brutality lies in the fact that the manipulator wants to get low-priced chips, which are often in the hands of retail investors.

Most manipulators get chips by smashing the market.

Some listed companies will cooperate by releasing some bearish news, such as deliberately lowering performance and delaying the collection of some financial receivables.

Another method is that the manipulator takes advantage of the market crash to smash the market desperately, driving the stock price to a very low level, and then grinding time at a low level for a long time to get the chips from retail investors.

No matter which method, the end result is to scrape the flesh from the hands of retail investors.

Moreover, the time cycle for the manipulator's entry is very long, so long that retail investors feel very long, and many retail investors cannot hold on.There are also some who finally endure until they break even, and then hastily leave the market, losing the cost of time.

Fourth, operation.

Focus on the operation of the market manipulators, in fact, do not think too complicated, it is nothing more than selling high and buying low.

Only those who wash the market, lift it, and sell out, are actually exactly the same as other funds.

However, the way of operation of the market manipulators is diverse, and different funds can be done according to the preferences of the traders.

But the bottom line of operation is how to let retail investors take over the market.

The most successful manipulators in operation are those with themes, which can sell at high positions to the main funds that take over when a theme erupts.

The manipulators who operate less successfully will go back and forth, selling high and buying low, earning a little hard-earned fee.

There are some stocks that have a round of lifting market every half a year or a year, which are actually done by the manipulators.

These manipulators are not strong enough, and the result is that they lift a round, sell a part, and then pick up the chips back at a low position.The dealer wants to make a lot of money, but in fact, they also need to take advantage of the situation. The best scenario is to encounter a big bull market, where there is no shortage of capital to take over the positions.

If it is in a bear market, then it is normal for the dealer to not make money.

However, in the operation, even if the dealer loses money, they will not lose as much as the retail investors.

Operation is a long-term thing, some dealers can operate repeatedly in a stock for more than a decade, as long as the listed company does not go bankrupt, they have the space to operate.

Fifth, avoidance.

The avoidance referred to here is to avoid regulation.

Once the dealer's control over the stock price crosses the red line, it is market manipulation, manipulating the stock price.

So, the dealer's approach is to try to walk in the gray area as much as possible.

They don't necessarily have to make themselves the so-called evil dealers, try to control the fluctuation of the stock price, especially to avoid a big drop.

Usually, the dealer's short-term price cut of the stock is around 20-30%, within this range of losses, most retail investors are willing to accept the loss.In the long run, the operating space of the market makers often has more than double the range, which means that during a decline, the drop may exceed 50%.

Market makers have many ways to avoid regulation, such as not continuously pulling up the limit when the price rises, or keeping the short-term price fluctuations within 50%, all of which are within the scope allowed by regulation.

The method of selling goods in conjunction with good news can also effectively avoid the reputation of malicious speculation.

In terms of avoiding regulation, market makers are also experts, and they do not want to be unable to eat and carry away because of some overstepping issues.

Many high-level slaughtering plates have not ended well in the end, and it is more reliable to operate stocks steadily, making money by buying low and selling high.

In fact, market makers are also a very important force in this market.

If there are no so-called market makers or market makers in this market, then 80% of the stocks in this market will be ignored.

Because most listed companies do not have long-term investment value, and there is very little capital participation.

From some perspectives, market makers, hot money, quantitative funds, etc., are all important components of the market.

Otherwise, this market will become stagnant, with lower volatility and fewer investment opportunities.Existence is rational, the key issue is how retail investors should face it, the existence of funds that are stronger than you, and seek opportunities in between.