main inflow and main outflow are commonly used terms in the stock market, which are used to describe the direction and trend of large amount of funds flowing in the stock market. The main inflow refers to a large amount of funds flowing into a stock, while the main outflow means a large amount of funds flowing out of a stock. Despite the main inflow, stocks may still fall. This paper will introduce the meaning of main inflow and main outflow in detail, and discuss why the stock price will fall in the case of main inflow.

1. definition of main inflow and main outflow

main inflow refers to the influx of large amount of funds into a stock, which is usually controlled by institutional investors or large funds. The main inflow is usually considered as a signal of stock price rise, because the inflow of a large amount of funds will push the stock price up and increase the activity of market trading. The main inflow is often related to the following aspects: block trading, centralized buying by institutional investors, net buying by large funds, etc.

on the contrary, the main outflow refers to the outflow of a large amount of funds from a stock. The main outflow is usually caused by the reduction of institutional investors or large funds. The main outflow is often regarded as a signal of stock price decline, because the outflow of a large amount of funds will lead to an increase in stock supply and a decrease in market trading activity. The main outflow is usually related to the following aspects: block trading, centralized selling of institutional investors, net selling of large funds, etc.

2. Why does the main inflow cause the stock to fall

Although the main inflow is usually regarded as a signal that the stock price is rising, the stock may still fall in the case of the main inflow. This may be related to the following factors:

2.1 Technical factors

The rise and fall of stock prices are not only determined by the main funds, but also affected by the supply and demand relationship in the market and investor sentiment. If the market as a whole is in a bear market or adjustment stage, even if there is the main capital inflow, it may not be able to resist the downward trend of the overall market. The technical form, stock price trend and trading volume of stocks will also have an impact on stock prices.

2.2 market expectation

sometimes, the inflow of main funds may be due to some special reasons, such as good news in the news or short-term profit-making effect in the market. Once these good news fades or market expectations change, the main funds may also be quickly withdrawn, leading to a decline in stock prices.

2.3 market manipulation

There are various manipulation methods in the market, and some institutional investors or large funds may artificially manipulate stock prices through block trading. They may attract other investors in the market and then suddenly withdraw, resulting in a sharp drop in stock prices.

2.4 risk control

after the main capital flows into the stock, sometimes the risk of the stock or the change of the internal and external environment will be found, and then it is decided to reduce or withdraw. In this case, the main inflow does not mean that the stock price will always rise, but there may be a short-term decline.

main inflow and main outflow are important indicators of the stock market, but the rise and fall of stock prices are not only determined by the flow direction of main funds. Technical factors, market expectations, market manipulation and risk control may all lead to the stock price falling under the main inflow. When analyzing the main inflow and outflow, investors should comprehensively evaluate the investment value of stocks in combination with other factors.