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Investors Should Avoid Seven Abnormal Trading Behaviors

2019-07-24 17:15
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Investors Should Avoid Seven Abnormal Trading Behaviors
----- From the website of China Securities Regulatory Commission
Since this year, the number of stock movements in Shenzhen stock market has increased significantly compared with the same period last year. The more active the market is, the more frequent the abnormal fluctuations are. In order to guard against market risks and guide investors to trade in compliance, the relevant laws and regulations, such as the Securities Law and the Trading Rules, clearly define the abnormal trading behaviors that may affect the price or volume of securities trading. We summarize them into seven categories for investors to understand and master.
The first is the transaction related to the suspected insider trading. This is a suspected violation of the current key supervision. There are two main forms of dislocation. One is the stock price dislocation and the existence of centralized account transactions before the listed companies release significant growth in performance, directional issuance, asset injection and major investment. The other is accompanied by various rumors in the market, some of them themselves. Account centralized purchasing with the characteristics of affiliation or affiliation with listed companies and major shareholders.
The second is the agreed transaction, that is, the market commonly known as knock-on, right-and-wrong. If there are a lot of or frequent transactions between related or suspected related securities accounts, such transactions are suspected of contractual transaction manipulation. In the past, manipulation cases, such as "Yi'an Science and Technology", "China Science and Technology Venture", "Delong System" and other stock transactions, have been investigated and dealt with in large quantities.
Third, false declaration. It mainly refers to the influence of frequent declarations or revocation of declarations on securities trading prices. For example, the repeated declaration and withdrawal of the declaration by some "death squads" at the price of the stock market are suspected of misleading the market and affecting the stock price by false declaration.
Fourth, pull up and press down. Mainly refers to a large number of declarations, continuous declarations, high-price or low-price declarations, resulting in a sharp rise or fall. A typical example is that some large short-term investors in order to maintain the stock price in the tail market to pull up the stock price.
Fifth, continuous centralized trading. Mainly refers to a number of accounts that may be related to carry out large and continuous transactions over a period of time.
Sixth, abnormal turnaround trading. It mainly refers to a large number of frequent reversal transactions at similar prices in securities transactions, such as warrants, which can carry out T+0 revolving transactions, resulting in large fluctuations in securities prices.
Seventh, irrational trading. There are two main situations: one is to blindly follow the recommendation of so-called "experts" in blogs, stock bars and other media, leading to stock price changes and losses; the other is to blindly chase high prices, kill down and trade frequently when the stock price fluctuates greatly.