Disruption refers to the situation that the main force hangs a large number of sell orders, which leads to the stock price falling. It is one of the regular trading methods of the main force. Disruption mostly occurs at the low stock price. Some investors are puzzled about this. Why does the main force smash at the low position? Let's go on to see the following.
why did the main force smash the plate in the low position?
(1) create panic by smashing big orders and then achieve the purpose of washing dishes. In order to get cheap chips, the main force depresses the stock price several times and does not start the pull-up mode until there are enough chips.
(2) The main fund knows the major bad news in advance, and the bad news will increase the extent of the stock price decline. At this time, the main fund will start the crazy escape mode and quickly sell the chips in its hand to minimize the loss.
(3) Private equity funds and other institutions are forced to ask for positions, and when the net value of fund products shrinks sharply, they may also face huge redemption from investors, which will lead fund managers to sell stocks passively. Therefore, when the stock price is at a low level, the main force will be passively out. The main purpose is to keep the net value of fund products stable. Even if it is known that it will rebound in the future, it can only be sold.
generally speaking, the main market-breaking may be fund-raising or forced market-breaking, which needs to be judged according to the actual situation. Investors are advised not to make a decision before they know the specific situation.