How retail investors are unknowingly cut by block orders
$XIAOMI-W (01810.HK)$
In order to force retail investors to sell and exit the market, stock market block orders have various conspiracy tactics to make retail investors sell off, mainly through the following methods:
(1) Selling stocks directly to break through and force retail investors to sell off
Block orders use the method of directly smashing the market to make retail investors cut losses the most effectively. Regardless of the short, medium, or long-term style, most investors will cut losses and exit the market once the stock breaks down. When retail investors have cut losses almost enough, the market will turn around. Many retail investors wait for the stock to be sold before it starts to rise, suspecting that block orders are monitoring their accounts.
(2) Stocks control a downtrend state to make retail investors cut losses.
Block orders keep the stock price under control, causing the stock to continuously show a downtrend, rising less and falling more. Overall, there won't be significant surges or plunges, instead it drops little by little every day. Even when the stock market is surging, it does not follow the rise. Stocks just follow their own path, dropping a little each day, making it unbearable for retail investors, who can't withstand the mental torture, to voluntarily cut losses and exit the market.
(3) Releasing bearish news to force retail investors to cut losses.
Block orders use bearish news to make retail investors bearish on the stock price. The stock price also cooperates with the bearish news to suppress the stock price, causing retail investors holding stocks to lose confidence, thinking that the stock price will continue to plummet. They capture the fear of retail investors to make them cut losses.
(4) Stocks in a long-term consolidation at the bottom pressure retail investors to cut losses.
Block orders control the stock within a bottom range, often the means of long-term block orders. They keep the stock price in a consolidation phase for a period, quietly accumulating shares. A consolidation can last one or two years, causing retail investors holding stocks to lack the patience to wait, unable to see a future in the stock. Many retail investors are unwilling to wait and can only surrender their chips to block orders, re-select stocks. This method of block orders keeping the stock in consolidation and cutting losses is more uncomfortable than any other method.
(5) Creating a bearish illusion in the market to make retail investors cut losses.
Block orders sell a lot of ultra-large sell orders on one to five price levels every day. When these ultra-large sell orders do not get executed, they are just displayed intentionally for retail investors to see. This means that with so many selling pressures from these large sell orders in line to sell out, the stock price cannot go up at all, causing many retail investors who do not watch the market to think that with so many large sell orders, the stock price is likely to plummet next, and they can only admit defeat, cut losses, and exit the market.
(6) Block orders use funds to make retail investors cut losses.
Block orders use fund manipulation to create signals of a significant stock price decline. This is different from the false appearance in the market. Fund manipulation also involves large sell orders being displayed on the one to five price levels continuously, but actual large sell orders will be executed. As a result, the stock price will be suppressed. In fact, these orders are chips transferred from one hand to the other by block orders, creating a panic situation in the market and forcing retail investors to obediently cut their losses and hand over their chips.
After a long period of horizontal consolidation in line with options 1, 2, 3, and 4, a short-term breakthrough occurs, accompanied by bearish news of a global epidemic. In the large cap market, there are definitely no market makers, but when retail investors continuously dispose of their chips to various institutions and block orders at low levels, there is an expected consensus. This marks the start of a new round of market rally.
So when entering the market, try not to use leverage! When the company's prospects are fine and the stock is moving sideways, do not make changes! Holding stocks for the long term is the golden rule of investment!
In order to force retail investors to sell and exit the market, stock market block orders have various conspiracy tactics to make retail investors sell off, mainly through the following methods:
(1) Selling stocks directly to break through and force retail investors to sell off
Block orders use the method of directly smashing the market to make retail investors cut losses the most effectively. Regardless of the short, medium, or long-term style, most investors will cut losses and exit the market once the stock breaks down. When retail investors have cut losses almost enough, the market will turn around. Many retail investors wait for the stock to be sold before it starts to rise, suspecting that block orders are monitoring their accounts.
(2) Stocks control a downtrend state to make retail investors cut losses.
Block orders keep the stock price under control, causing the stock to continuously show a downtrend, rising less and falling more. Overall, there won't be significant surges or plunges, instead it drops little by little every day. Even when the stock market is surging, it does not follow the rise. Stocks just follow their own path, dropping a little each day, making it unbearable for retail investors, who can't withstand the mental torture, to voluntarily cut losses and exit the market.
(3) Releasing bearish news to force retail investors to cut losses.
Block orders use bearish news to make retail investors bearish on the stock price. The stock price also cooperates with the bearish news to suppress the stock price, causing retail investors holding stocks to lose confidence, thinking that the stock price will continue to plummet. They capture the fear of retail investors to make them cut losses.
(4) Stocks in a long-term consolidation at the bottom pressure retail investors to cut losses.
Block orders control the stock within a bottom range, often the means of long-term block orders. They keep the stock price in a consolidation phase for a period, quietly accumulating shares. A consolidation can last one or two years, causing retail investors holding stocks to lack the patience to wait, unable to see a future in the stock. Many retail investors are unwilling to wait and can only surrender their chips to block orders, re-select stocks. This method of block orders keeping the stock in consolidation and cutting losses is more uncomfortable than any other method.
(5) Creating a bearish illusion in the market to make retail investors cut losses.
Block orders sell a lot of ultra-large sell orders on one to five price levels every day. When these ultra-large sell orders do not get executed, they are just displayed intentionally for retail investors to see. This means that with so many selling pressures from these large sell orders in line to sell out, the stock price cannot go up at all, causing many retail investors who do not watch the market to think that with so many large sell orders, the stock price is likely to plummet next, and they can only admit defeat, cut losses, and exit the market.
(6) Block orders use funds to make retail investors cut losses.
Block orders use fund manipulation to create signals of a significant stock price decline. This is different from the false appearance in the market. Fund manipulation also involves large sell orders being displayed on the one to five price levels continuously, but actual large sell orders will be executed. As a result, the stock price will be suppressed. In fact, these orders are chips transferred from one hand to the other by block orders, creating a panic situation in the market and forcing retail investors to obediently cut their losses and hand over their chips.
After a long period of horizontal consolidation in line with options 1, 2, 3, and 4, a short-term breakthrough occurs, accompanied by bearish news of a global epidemic. In the large cap market, there are definitely no market makers, but when retail investors continuously dispose of their chips to various institutions and block orders at low levels, there is an expected consensus. This marks the start of a new round of market rally.
So when entering the market, try not to use leverage! When the company's prospects are fine and the stock is moving sideways, do not make changes! Holding stocks for the long term is the golden rule of investment!
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