What does "cutting leeks" mean in stocks?
In the process of development of the stock market, a large number of Internet terms have been created. Each word has its own connotation, and they all imply or metaphor some things, such as: short buying, short selling, bullish, and bearish. , Changkong, cutting leeks and so on. Below, the editor will explain what cutting leeks means in stocks. I hope you all like it.
What does "cutting leeks" mean in stocks?
In reality, cutting leeks is a social labor phenomenon. It means harvesting the local leeks after they have matured. One characteristic of crops like leeks is that after they are cut, they will grow back after a while, and people can continue to harvest them.
The cutting of leeks in stocks is a metaphor for the phenomenon of disadvantaged retail investors being harvested by advantaged groups such as bookmakers, main players, and institutions. Groups such as bankers, dealers and institutions can be compared to the owners of crops, and the stocks held by retail investors are leeks. When the stock price in the hands of retail investors rises to a certain level, the dealers and dealers will come to harvest. Leeks refer to the grassroots people in the financial circle
Since a large number of novices will enter the stock market every once in a while, after the bankers and main players have finished cutting off the previous batch of retail investors, there will be another one after a while. When new retail investors enter, when the stocks in the hands of new retail investors rise to a certain level, they will be harvested again, just like cutting leeks, one after another.
The way for main players, bookmakers and institutions to cut leeks is to take advantage of the chips in their hands to sell a large number of stocks, causing the stock price to fall. When the stock price falls, they re-establish positions and make profits in this way. Take the difference, that is, buy low and sell high. In this process, the funds in the hands of retail investors will be invisible and stolen by these people.
For example: For example, if the price of a stock is 20 yuan, and the banker feels that this wave of leeks has almost risen, he will sell a large number of stocks in his hands when the stock price is 20 yuan. The stocks will cause the stock price to fall. When the stock price drops to 15 yuan, the banker will buy a large number of positions to build positions. At this time, the stock price will be pushed up again. In this process of buying low and buying high, the bankers make profits, while retail investors can only be harvested by others.
Is it easy for novices to be cut off?
Generally speaking, novices who have just entered the market, lack experience in stock trading and are not professional, are easily cut off. But even some experienced veterans can't escape the fate of being cut. But in terms of probability, novices are indeed easily cut off by the dealers and main players.
However, there are also many novices who have made a lot of money in the stock market by relying on the luck they cultivated in their previous lives when they first entered the market, so everything must be viewed dialectically. The stock market is risky, and investment needs to be cautious. We can only accumulate investment experience step by step, and we cannot think about getting rich overnight. The money earned through luck will eventually be lost by luck. A thousand-story building starts from tired soil, and a journey of a thousand miles begins with a single step. On the road of investment and financial management, we must not be impatient and learn to control our emotions.
Are there any restrictions on stock selling times?
Stock trading hours: Monday to Friday 9:30-11:30 am, 13:00-15:00 pm, no other times trade. After the stock is cleared, investors can make entrustments. The stock clearing time is from 4 p.m. to 10 p.m. on the trading day. Stocks are subject to T1 trading. If you buy it on the same day, you need to sell it on the second trading day. The funds obtained from the sale cannot be used on the same day, and you need to wait until the second trading day to withdraw it.
Warm reminder: When a stock's stock price begins to rise sharply, its trading volume often rises sharply. The reason is that institutional investors are rushing to buy the stock to get ahead of its competitors. After a prolonged period of rising momentum, the stock price's upward momentum runs out. The stock price will continue to reach new highs, but the trading volume will begin to decline. Once supply begins to exceed demand, eventually selling pressure builds and a series of shrinking increases heralds a reversal.