The main force is the main force to pull up and sell down the market. All retail investors want to have the main force to pull up their individual stocks. So we see that the main force has begun to reduce its positions? How should we operate at this time? For this, please read below.

What does the main reduction of positions mean?

The main reduction of positions indicates that the main funds are selling stocks, and investors need to reduce their positions at this time. In the stock market, the main representatives are large investors, institutions and some banker private equity. The reduction or exit of these funds often means that the stock is currently at a high level, with less room for continued growth and greater room for decline in the future. Since the chips are concentrated when the main force holds a large amount of a stock, when the main force reduces its position, the increase in circulating chips in the market will cause the individual stock to fall.

The main force's reduction in position is generally divided into two types: the first is when individual stocks are at a high level. At this time, the main force has already made huge profits, so the main force's reduction in position is to maintain profits and achieve profitability. The second is that after individual stocks continue to fall, due to the obvious market decline, the main players must reduce their positions to reduce losses, and are therefore forced to reduce their positions.

In general, there is basically no big difference between the main force’s reduction of positions and our investors’ position reduction, but the main force’s negative impact on the market is far greater than ours.