In the A-share market, each of us thinks about the presence of bookmakers or main players in our holdings, because they symbolize rising potential. We all know that conditions are needed to promote individual stocks. On the one hand, it is the cooperation of news, and on the other hand, it is the cooperation of chips. Only a two-pronged approach can create a big bull stock. So how do we generally view the banker’s control?

How many chips does the banker need to control the market?

Theoretically, bookmakers need to have at least 20% of the circulating chips in the market to control the market. Only in this way can they control the market and rise or fall at will. Under normal circumstances, if the market maker controls less than 20%, the impact on the market will be extremely limited. In addition to the funds used to promote the market, it is almost equivalent to three people beating seven people, so the impact on the market will be limited. On the contrary, if it is above 40% or 70%, then you basically have complete control of the market.

A market maker generally has more or less control over individual stocks, because without control of individual stocks it is difficult to follow the trend expected by the market maker. Just like the analogy mentioned above, making the stock rise is like a war. The entire market has ten troops. The more chips the dealer controls in it, the more troops he has, so in the end, the stock price will be controlled according to its strength. The more likely it is that the trend of willingness will rise.

How can we judge the strength of this control?

1 Looking at the graph, generally after we find the market maker stocks, we can use the changes in their trading volume to estimate the market maker’s positions. In most cases, there will often be large orders to pull up the market makers. We will use the daily large orders to Summarize the quantities, and then find the average number of large orders accounting for the daily trading volume within a month. The final percentage can be approximately regarded as the number of chips for the market maker to increase the stock price. There is a characteristic of market makers. Their holding chips are generally about three to four times the raising chips.

2 From the perspective of the time that the market maker maintains its stocks, the longer the period of buying stocks, the larger the market maker’s position, the larger the daily trading volume, and the more stock the market maker attracts. The extent of a stock's rise is determined to a certain extent by the amount of funds introduced by the banker. That is, the larger the banker's position, the stronger the ability to control the market, the greater the funds used by the banker, and the higher the profit after the stock is raised.

In general, the higher the banker’s position, the better. The larger the position, the greater the banker’s loss costs, the trading cycle is lengthened, the risk is correspondingly increased, and off-site retail investors are not enthusiastic about participating. The banker can only sing and pull, and the stock nature is relatively dead and difficult to distribute, so we often see flash crashes. Generally speaking, the position of the banker is between 20% and 80%, and it is common for the position to account for 50% and 70% of the circulating market. If the position is too large, the risk factor is too high.