What does 'inducing more' mean? Popular explanation of 'inducing more'

Bull luring refers to the operation method in which traders induce investors to buy stocks to raise the stock price by spreading good news or other means, and then sell the stocks to make a profit. The specific steps to lure bulls include: releasing good news, raising the stock price slightly, inducing retail investors to buy, and selling at a profit. It is characterized by a short-term rapid increase in stock prices and the use of retail investors' psychology to chase the rise, but the risk is relatively high. The key to identifying bullish inducement tactics is to observe signs such as a sudden sharp rise in stock prices, abnormally high trading volume, intensive good news, and repeated intraday rises and falls.

What does inducing more mean?

Bull luring is a trading technique in which traders induce investors to buy a large number of stocks by releasing good news or other means, thereby raising the stock price. When the stock price rises to a certain level, traders will sell the stock and take profits.

Specific steps to lure bulls:

1. Releasing good news: Traders will spread some news that is beneficial to the company, such as new cooperation, major favorable policies, etc.
2. Smallly raise the stock price: Traders will gradually raise the stock price by buying a small amount of stocks to attract the attention of retail investors.
3. Inducing retail investors to buy: When the stock price rises to a certain level, traders will buy a large number of stocks or release good news to induce retail investors to follow the trend and buy in large quantities.
4. Profit selling: When the stock price rises to the target price expected by the trader, the trader will quickly sell the stock and take profits.

Characteristics of inducing bulls:

• Rapidly raise the stock price in the short term: Luring bulls can quickly raise the stock price and attract retail investors to follow the trend and buy.
• Taking advantage of retail investors’ psychology of chasing prices up: The lure-to-buy technique takes advantage of retail investors’ psychology of chasing prices up. When the stock price rises, retail investors tend to buy in large quantities, pushing up the stock price.
• Higher risk: Bull-inducing techniques are relatively risky. If done improperly, traders may face significant losses.

How to identify bull inducing tactics:

• Sudden sharp rise in stock price: When the stock price rises sharply in a short period of time, be aware that it may be a bull inducing tactic.
• Abnormally high trading volume: If the stock price rise is accompanied by a large trading volume, it may also be a sign of bullish temptation.
• Intensive good news: If good news frequently appears during the rise in stock prices, be alert that it may be a bullish inducement.
• Repeated intraday rises and falls: In the bullish luring technique, traders may raise the stock price multiple times and then pull back again, in order to induce retail investors to chase the rise.

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