To understand what the professionals do, investors should learn to think from the perspective of a businessman who is trying to sell his stock at retail prices. As they clear the shelves of stock, they will buy more goods at wholesale prices for profit. With this in mind, we can understand the following eight rules:
1. As a trader, a professional expects to sell the stock he bought at wholesale price at retail price. -
2. The longer professionals work in this industry, the more capital they will accumulate for wholesale buying and retail selling.
3. As communication media expand, more and more people will enter the market, which will further change supply and demand factors, leading to greater volatility in stock prices.
4. In order to buy and sell more stocks, exchange members will look for new ways to improve their selling skills through the media.
5. In order to utilize more financial resources, professionals must further expand the decline in stock prices, thereby washing out investors and obtaining enough chips.
6. The rise in stock price should be attractive enough to attract public attention in order to sell the increasing inventory of stocks.
7. The most active stocks take longer to distribute their shares.
8. Economic development will be constrained by an increasingly severe financial crisis, which will cause problems including inflation, rising unemployment, high interest rates and a shortage of raw materials.
The investment and speculative markets we participate in are all manipulated to some degree. This includes the covert behavior of market makers and the intervention of exchanges in the market. Some interventions are public. But trading volume cannot be hidden. Trading volume reveals trading behavior. Trading volume reflects the real situation behind price changes. Trading volume verifies the authenticity of price changes.