Recently I was reading Memoirs of a Great Stock Operator, and Chapter 21 of it wrote about Jesse’s experience of trading two stocks. I gained some insights, so I used $ygg to practice and record my thoughts. Welcome to share my thoughts.
First, when the market maker is preparing to trade,
This coin has almost no liquidity. They need to build liquidity to allow the market to take over the coins in their hands.
At the beginning, collect a wave of coins and scan the sell orders on the market.
This way there is almost no selling pressure and the market moves in the direction of least resistance, which is up.
When traders see the currency price rise, they will sell a wave of coins, which means there will be a slight correction.
Market makers need to hold the bottom at this time and cannot let the currency price fall too low. Even if there is a period of sideways trading, people who have not sold at the high point before may also hand over their mobile phone tokens.
After there is no more selling pressure in the market, market makers will pull the price.
Pulling the market is the best marketing. At this time, many retail investors may notice the entry of this coin, but at this time the price has already risen.
Market makers can just continue to pull the market at this time. Some people will chase the rise, but not many.
Now we just need to let the currency price pull back
There will be a large number of retail investors rushing to rebound, and market makers can transfer a lot of coins to retail investors at this time.
If you pull it later and call back a few times, you can almost complete the transfer of a large number of tokens.
A knowledge point: Most of the tokens sold by market makers are sold when the high point is falling.
Based on the judgment that the general environment is a bear market, this currency should almost fall (yesterday at 17:00
So I went short, set a stop loss, and let the market give me the answer.
Obviously the first test of the water failed, and finally the market maker reached a new high.
Then combine the currency price and trading volume to see that after the price here rises, market makers begin to ship in large quantities, and the market's minimum resistance is downward.
There should be no suspense about short selling at this time
Set a profit stop after opening an order
Review:
1. Opened a little late and didn’t keep up with the market.
2. After placing an order, if the trend is confirmed to be correct, the position should be increased.
