Stock Wash

Stock wash is a technique in the stock market that uses a large number of buying and selling operations to affect the stock price trend. Usually, the purpose of the wash is to eliminate retail investors so that large investors or main players can absorb chips at low prices, or to create market panic and make the stock price fall, thereby making profits.

There are many ways of stock wash, such as:

In the short term, stock prices are raised or suppressed, causing psychological fluctuations among investors and inducing them to follow suit.

A large number of buy or sell orders are placed to create an illusion of market supply and demand and affect the stock price trend.

Use news, news, rumors, etc. to spread positive or negative information to influence the emotions and judgments of investors.

Use technical analysis, indicators, trends and other methods to create false signals and induce investors to make wrong operations.

Washing the market is a very dangerous phenomenon for stock investors, because it can cause them to lose control of the market and even cause heavy losses. Therefore, investors must learn how to identify and avoid washouts and protect their own funds and interests.

How to identify and avoid stock wash?

To identify and avoid stock wash, investors need to do the following:

Establish your own investment philosophy and strategies, and do not change or give up at will.

Strictly implement your own stop loss and take profit rules and do not be affected by market fluctuations.

Stay rational and calm and don't be swayed by greed and fear.

Collect and analyze market information from multiple aspects, and do not believe in single news or rumors.

Pay attention to fundamental analysis and long-term value investment, and do not pursue short-term high risks and high returns.

Choose brokers and platforms with strength and credibility, and do not participate in illegal or irregular transactions.

Summarize

Stock wash is a common operating technique in the stock market, which can cause great trouble and threats to investors. Therefore, investors must learn how to identify and avoid market washouts and stick to their own investment principles and goals. Only in this way can we obtain stable and long-term returns in the stock market.