Unveiling the secrets of institutional trading: the complete process from stock selection to distribution.
In the stock market, individual investors are often at a disadvantage due to information asymmetry. On the other end, institutional players (Block Orders), with their massive funds, professional teams, and information channels, influence stock price trends through a series of sophisticated trading processes, even 'harvesting' individual investors. This article will systematically reveal the six major trading steps of institutional players: stock selection, accumulation, escalation, cleaning, control, and distribution.
---
1. Stock selection: Strategic layout before setting the stage.
The market maker does not randomly choose stocks, but has a set of strict stock selection criteria:
Moderate circulation: A market that is too small makes it impossible for the market maker to accumulate shares, while a market that is too large is difficult to control. Generally, stocks with smaller total market capitalization and moderate circulating shares are prioritized.
Stable fundamentals: Although market makers can hype topics, they still prefer companies with certain fundamental support to avoid risks caused by sudden policy and news changes.
Themes with explosive potential: policy hotspots, New energy, AI, military industry, etc., are themes that easily attract market attention and are favored by manipulators for speculation.
Technical support: selectively choosing stocks that are at bottom ranges and have completed long-term consolidation is more likely to trigger a main upward trend.
---
2. Accumulating: quietly buying stocks.
Accumulation is the first step for the operator to build positions, aiming to collect enough chips at low levels without triggering retail investors to follow suit.
The methods of accumulation include:
Suppression-style accumulation: creating panic selling through sharp declines, undermining retail investor confidence, causing them to cut losses and exit.
Horizontal consolidation accumulation: the stock price maintains for a long time...