Stock market bull, a large number of retail investors rushed in, and then turned into leeks were cut. What is' cut leek '? Why is it called Leek by retail investors? Today, I'll take you to understand it. Please see below.
Why are retail investors called leeks?
When we talk about the stock market, we often refer to the word 'leek'. It is used to describe the retail investors who are losing money in the stock market. In the stock market, leek cutting refers to that retail investors suffer losses because of the limited level of timing and stock selection and the lag of news coverage.
In general, when the stock market soars, leeks have reached a vigorous growth period. For example, the recent A-share boom, the number of weekly accounts opened by securities companies increased by 53%. With the rise of the stock market, not only the number of retail investors entering the market increased, but leeks were full of confidence no matter how big funds were harvested. For example, recently, a large number of major shareholders have announced the reduction of their holdings every day.
Large funds generally include dealers, hot money and institutions (private funds, public funds, national teams, social security funds, etc.), but now there are not as many as before, mainly hot money. Take Ma Yongwei, a hot money harvester, as an example
It took several traders to find hundreds of stock accounts from Jiangnan provinces and sniped at many stocks. The selected stocks are relatively unpopular, with a small total share capital and a market value of less than 3 billion.
First of all, hot money is raised at low and low cost, and the positions are built in silence. At a certain time, the hot money is lifted. The controlled stock accounts are used to reverse, creating the illusion of active stock trading and guiding retail investors to follow up.
When the stock price is closed, hot money continues to apply for buying at the limit price, strengthening the trend of late trading limit and inducing retail investors to follow suit. In the shipment stage, the hot money will complete the shipment through the false declaration and the price limit. When it comes to the retail investors, they will be the "takers", and a large number of retail investors will be locked up in high positions.
Generally speaking, the stock market is a game market. Retail investors have no capital advantage, no information advantage, and all aspects are disadvantages. If you don't know enough about the company, you should at least choose stocks with excellent performance, or you will invest in index funds, otherwise you will easily suffer losses.
Well, that's all about the topic of individual leek. I hope it can inspire you. Warm tips, the stock market has risks, investment should be cautious.