Category: Money Tips Date: 2006-11-24
Makers playing the stock market is to buy low, sell high, and thus obtain the bid-ask spread, the bookmakers will try to trick in the retail selling price is low, stock prices, after being pulled to induce a high pick-up retail.
When the stock price is low or is relatively undervalued, the dealer principal means may be used in the following categories:
Manufacturing cheat line. When the dealer to buy the stock up to a certain quantity of the stock will show a definite upward trend, in order to reduce costs, reduce short-term follow suit who might be making a large number of sell-off, so that the rapid drop in stock prices, and even fell below important support levels, and then in the following hang pay as much as possible to collect individual investors panic selling of cheap chips.
Making a false volume. Makers may deceive line with an incremental reduction in the low production value, a fall in price increments of the illusion, trick retail selling.
The use of individual inertia of thinking, manipulation of stock prices is similar to the current high drop out of the stock graphics, so that the misconception that the retail price will be substantially down, resulting in low to sell.
The use of technical analysis is widely used in the market environment, in the low collection of chips due to the slightly higher price or the stock rebounded slightly, it will be KDJ, RSI and other technical indicators so high that individual investors that bought the ultra-low out.
At this point investors to statements of listed companies for serious analysis, and with the same listed company's share price compared to confirm whether the shares are relatively undervalued and should not be fooled by a momentary appearance.
At a high price when the dealer tool. When the stock price is high, the dealer already has enough profit margins, its consideration is doing everything possible to dispose of the stocks may be the principal means used by the following categories:
Use patterns. At a high level up to create a beautiful shape, such as the ascending triangle, upward break, so that investors mistakenly believe that stock prices will accelerate the rise, once the chase in, is likely to quilt.
Makers to achieve the purpose of shipping high success, more is that in a large, fast-pulled (stock price that may exceed its target bit much) lower after the initiative in its shipment target is close to consolidation, the longer the time after the consolidation, not small investors may mistakenly think that by passing a long time, relatively large adjustments have been low. Then the dealer and then inverted so that large volumes of through and supported by price l shape, so that many investors believed that the bottom of the big bang, rush to buy, This is exactly what the dealer wants. (Stock market student)
