Index continues to kill quickly!After the market is expected to shock repair!

2022-04-25 0 By

Fell into a dog also hit the plate!Can the main force not be lost?Last Friday, the last trading day of the Year of the Ox, so hastily ended!At noon index also once turned red bottom picked up, the results fell back again in the afternoon!I believe many people are very confused, such a falling method, the main force you especially meow can earn several meters?I’m sure you’ve been wondering that too!A stock so fall, can the main force make money?Is anyone making a profit?Or do we all lose?To understand this problem, first understand a term called circulation!What does liquidity mean?In other words, the higher the liquidity is, the more cash can be realized, while the weaker the liquidity is, the less cash can be realized. This is the fundamental reason why H shares are much cheaper than A shares for the same company.Because A shares than H shares to be more active!So let’s say you have 10 million dollars worth of stock, and the stock price is 9 dollars, and if you have good liquidity, you can sell it all at 9 dollars, and turn all of your 1,000 dollars of stock into cash.If liquidity isn’t good, you’ll probably sell half of it for $9!If you want to continue to liquidate, you can sell it at a lower price. If you sell it, you will not be able to buy it, and the share price will naturally fall, thus affecting all investors who hold the stock!So all you have to do is turn your stock into cash, but because of liquidity problems, you only get 9 million out of 10 million, and you’re losing 1 million!What about the others? They didn’t do anything. They lost along with you!Here the likelihood somebody can say, majority is zero sum game, that is to say, have to earn to have a deficit, have a deficit to have a deficit, how be deficient possibly?In fact, this idea is just based on the mechanism of the stock above.But in practice, the core of the main profit and loss or liquidity, that is to say, to earn is the market value, but, the market value can not always become cash, and here involved in the market environment is not good, retail investors are afraid to enter the market, the liquidity will naturally reduce, the same main will appear losses!That many people say wrong!How could the main force lose?No matter be true loss or float loss, as long as he can control price can be right, even if the market value that holds, your price controls, your holding position or profit ah?Here is involved in a problem, the main and retail investors are how to game, a stock ten retail investors to sell, the main force can undertake, 100 retail investors to sell, the main force can also undertake, that 10,000 retail investors to sell, can not undertake!With the main financial strength does not have much to do with, just like you are a boss opened a mahjong hall, chips are all yours, but, no guests to play ah!At this time, how much the chip is worth, in fact, does not mean anything!Did you say you were expecting guests?No, because you have rent and utilities to pay, right?In case the overall market environment is not good, that their funds will be deeply set inside.So we look back at the 2018 unilateral bear market, the stock price is so low, the main force will sell?The answer is yes!He will also sell, because when the overall environment is bad, the first thing to consider is not profit and loss, but the problem of cash!The main objective is to get the money back!The same goes for houses. You don’t have to say what your house is worth, you have to know what the person is willing to pay for it.When the market is illiquid, the initiative is in the hands of the buyer, not the seller.Even if your house is worth $10 million and you can’t monetize it, that’s tough!So say a lot of time even if share price falls, main force lost also can hit dish come out!This is why I have been emphasizing not to see the market value of 5 billion, the daily turnover is less than 500 million, because this kind of target compared to 10 billion, 100 billion market value of liquidity must be poor, once the main want to cash is easy to be hit!Except for speculation, of course.So the core of large-cap stocks in the future or look more!Logic is this down it is not the lack of liquidity, even if fall also bring, as long as the belt quantity, won’t appear for major losses, and once the stocks it not liquidity, that this time is the true many killed many, also is we speak of retail investors see shares rose want to run the main force, don’t see the lack of liquidity also eager to liquidate, trample on both sides,Then this time the stock price will crash, this is the most panic time!And I think before this wave of brainless killing, many stocks are killed by mistake!After very hopeful repair!