The difference between the proportion of small purchases and the proportion of small sales is used to measure the main trading degree of small purchases or the follow-up degree of retail investors, reflecting the participation degree of retail investors. The retail follow-up coefficient is used to measure the follow-up degree of retail investors. In the stock market, the crazy follow-up behavior of retail investors often indicates the reversal of the market. The lack of follow-up by retail investors shows that the main force has been highly involved and there is a great opportunity to pull up. Therefore, when judging the main force behavior, the smaller the absolute value of the follow-up coefficient, the easier it is to judge the main force and trend. When the absolute value of the follow-up coefficient of retail investors is less than 3, it can be seen that the day's trading is capital-driven and has great growth potential; On the contrary, the greater the absolute value, it means that retail investors dominate the market, and the greater the adjustment in the market outlook.
In the stock market, the main players and retail investors are often antagonistic. If the main force of a stock is involved to a greater extent, then the involvement of retail investors is relatively small, and vice versa. To put it simply, when the main funds are raised and ready to be raised, retail transactions tend to account for a relatively small proportion, while when shipping and raising, retail transactions tend to account for a relatively large proportion, so if we encounter obstacles when analyzing large orders, we can often win by surprise when analyzing small orders.
At present, there is no index of the relative follow-up coefficient of retail investors in practical application, and the definition of small orders is not clear. For example, how to distinguish large-cap stocks from small-cap stocks, there is no clear numerical value, and there is no corresponding index to use in specific use. This can only be used as a reference direction.
In the stock market, it is the main force that plays a centralized role in the market that can affect the stock price most. When the main force ships, it will continue to attract more disk investors and attract senior retail investors to buy stocks. In this way, when they are trapped, they will start to smash dishes.
In fact, the main force is a relative concept in the stock market, and the corresponding retail investors and small institutional investors are inseparable from the main force at any stage of stock price operation. The existence of the main force certainly has its indisputable advantages.
1. Strong financial strength: capital is undoubtedly the most important factor in stock operation in the stock market. You can collect a lot of market chips by yourself, but before you have enough funds, the limited chips will be more resistant. However, from the perspective of the amount of funds, the main amount of funds is far less than that of retail investors combined. But the main advantage is that funds are concentrated and actions are unified, while retail investors cannot take the same direction of action.
2. Cognitive ability of the market: regardless of the size of the main force, the team has a division of labor, specializing in market risks and specializing in policy direction. The main force to grasp the fundamentals from a professional perspective is to crush retail investors. Most of the main players will conduct a very comprehensive inspection of the listing work during the stock selection period and establish contact with listed companies. Therefore, the main force has a certain understanding of the existing operating conditions of listed companies and the factors that may affect the stock price in the future, that is, the possible advantages and disadvantages in the future. Retail investors without sources of information can only rely on some platforms to catch shadows.
3. Understanding of trading thinking: As the main force of the market, I have in-depth research on the trading methods and operating mentality of retail investors; Retail investors may not understand the thinking and trading process of the main force, let alone analyze the characteristics of the main force of current stocks according to the trend of stocks. It is precisely because of this that the main force can be handy in the trading process and firmly control the market rhythm.
4. Strong trading ability: The biggest difference between main players and retail investors is their ability to control the market. The main force relies on its own financial strength and chips to influence the stock price to run at its own pace; Before the opening, the main team can discuss the market and make the trading plan for the day. Even the opening price and closing price set the interval at the opening. There is only one thinking of retail investors, that is, to find out the main funds, keep up with the operating rules of the main rhythm with pressure and risk, and earn a wave of follow-up money.