Anyone with a little knowledge of physics understands the physical effects of action and reaction, net force and component force.
In daily work, we also advocate unity, twist into a rope, and work hard in one place.
The fundamentals of physical effects are still not available in the stock market. Back then, the old shareholders all knew that the various securities business halls were crowded, the flow of people was like weaving, and the doors were like a market, how prosperous and popular.
At that time, as long as everyone recognized as a good stock, they were actively long, whether it was a large institution, a large capital, or a retail investor, only by going long, could they make money, and only by investing could they have income.
Therefore, a joint force is formed, multiple funds converge into a torrent, good stocks have good prices, everyone buys real money, stocks rise, everyone makes money in long, and produces the effect of sub-investment in gold mines. Outsiders saw that there was money to be made by investing in the stock market, and they withdrew money from the bank and moved into the stock market, and they did get good returns for a time.
In history, 6124 points, 5178 points of the big bull market old shareholders still remember vividly, and it is not an exaggeration to describe the stock market at that time as vigorous. Because there is only one subversive truth in the stock market, and only by going long can you make money. Short or resting nothing.
Since the innovative launch of margin trading, quantitative trading, and stock index futures, China's stock market has undergone tremendous changes. The resultant force of the physical effect, the force is no longer so obvious to produce a positive effect. Instead, there is a component force, a reaction force, that is, a force that can make money by shorting and forming a force in the opposite direction with longing. It has indeed played a role in balancing the stock market and curbing the crazy rise of the stock market.
The fundamental difference between short and long is that the long investment is large, and the real money is used to buy stocks to make money, and everyone picks up firewood and firewood.
The short investment is small, and the stock is borrowed through the exchange brokerage to borrow money to speculate in stocks. As long as you pay a certain margin, the interest fee can be speculated and shorted, and you can make quick money by selling high and buying low short-term operations.
Shorting is smaller than longing investment, with quick results, stable returns and good results. What's more, its authority is mainly the main force of large funds inside and outside the institution, and the most stable income is the money ticket lender.
These operators of the reaction force division use the small funds of the white wolf with empty gloves to make steady profits every day, which has harmed the normal trading order of China's stock market and harvested the vast number of retail investors who have invested in real money and real long-term value investment.
The original normal investment atmosphere of unanimously going long and steadily rising is gone. There is a new contrarian force in the market, shorting not only small investment, but also can make a lot of money for a long time without losing money, so there are more and more short-sellers, and the team continues to grow.
The short-selling force is large, and the retail accounts of the majority of the weakly trapped groups are shrinking every day, and people who can't support it are constantly closing their accounts, and they are out of the stock market, and there are fewer and fewer long participants.
No one participated, and the market turnover became less and less, from 2 trillion to 60 million. Excluding 30% of the trading volume of quantitative trading margin and securities lending, the actual daily trading volume is more than 400 billion. Every day, the harvesters of the stock market are only market makers and quantitative traders who borrow money and borrow securities, and most of the retail investors who invest real money are either deeply trapped in the dead long and watch others make money. Either close the account and withdraw away from the stock market.
There is a vicious circle in the investment market, and it seems that for a while and a half, it will not dare to cancel quantitative trading, margin trading, and securities lending transactions, for fear of cutting off these transactions and bringing about the so-called risks. But such useless persistence and endurance is by no means the solution to the problem.
Only by daring to face it bravely, daring to face up to the main contradictions, daring to listen to the suggestions of Wu Xiaoqiu, Liu Jipeng, Niu Wenxin, and the vast number of investors, and thoroughly taking decisive measures against quantitative trading of securities lending, can the stock market turn around and get out of the predicament.