How can retail investors maintain their mindset and respond to market makers' shakeouts?
In a volatile shakeout, low-position chips are your strongest shield. As long as your holding cost is lower than the market maker's cost, there is no need to panic sell. Master the following four key identification points to remain calm with your holdings and watch the shakeout with a smile:
Concentration of Chips
High concentration of low-position chips means strong support. When you find a large amount of chips in a certain price range, congratulations, this is the main cost area for the market maker's position.
High Turnover Rate
If the turnover rate in a certain range exceeds 200%, it is likely that the market maker is repeatedly absorbing chips to test selling pressure. Frequent large volumes in the short term are not entirely negative and often accompany a rise after the shakeout ends.
Volume Accumulation
The area of concentrated trading volume is the cost area and bottom-building area for market makers. During a shakeout, volume often accumulates first, and after chip concentration, a new wave of upward movement is initiated.
Large Orders Pressing Down
When large orders appear on the order book pressing down prices, it usually indicates that the market maker is absorbing chips at a low level. Don't be scared off by the sell orders—waiting for the pressure orders to withdraw or the orders to be completed often indicates the precursor to a rise.
Core Essence:
Patience in Holding: As long as your purchase price is lower than the market maker's absorption cost, short-term fluctuations are just gold being polished.
Rational Judgment: Start from the four dimensions of chip distribution, turnover rate, volume, and large orders on the order book, see through the illusions, and grasp the true support levels.
The greatest advantage of retail investors is the absence of interference from large capital noise.
Lock in low-position chips and patiently wait for an explosion!
You will become the next inconspicuous yet steadily doubling winner! However, if you frequently incur losses and do not understand trading, it is recommended to follow Wen Ge!