Which type of retail investors do dealers prefer?
Understand your opponent and double your chances of winning.
Knowing the type of retail investors that dealers love, we can take the opposite action and become the retail investors they don't like.
Hot money and dealers favor retail investors who operate in the short term.
Because they are targeting the profits of short-term traders.
Institutional investors prefer to harvest long-term holders, those retail investors who chase ups and downs.
In short-term trading, chasing ups is the norm, but the way to chase ups is different from absorbing at low positions and bottom-fishing. Medium- and long-term investment should focus on valuation, rather than the performance of the market index or industry, and pay attention to the arbitrage space between intrinsic value and market value.
Dealers are good at using K-line fluctuations to make retail investors panic at the bottom of the market and greedy at the top.
Trading volume is one of the most objective data. Trading volume shrinks at the bottom and increases at the top. This is a phenomenon that cannot be ignored.
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