In a bull market, if you don't understand the turnover rate, it's useless to speculate for another 20 years.
First, when the turnover rate is 1% - 3%, the stock performance is sluggish. At this time, most institutions are short, while retail investors are holding positions and watching. At this stage, the market lacks vitality and price fluctuations are small.
Second, when the turnover rate is 3% - 7%, the market is relatively active, and institutions begin to test positions and intervene in small amounts. This shows that the market has a certain degree of attention, but is still in a cautious and tentative stage.
Third, when the turnover rate reaches 7% - 10%, it is necessary to pay close attention. At this time, it is like a bullet loaded and ready to attack. The market activity is further improved, and institutions begin to actively deploy.
Fourth, when the turnover rate is 10% - 15%, pay special attention to the fact that the institutional feast has begun and start eating meat. At this stage, the market transactions are frequent, the price fluctuations are large, and institutional funds flow in a large amount.
Fifth, when the turnover rate is 15% - 25%, the market is extremely active, and institutions are in the sprint stage and intervene in large quantities. At this time, market sentiment is high and investor enthusiasm is fully ignited.
Sixth, when the turnover rate reaches more than 25%, the market starts to go crazy, institutions sell and prepare to withdraw. This means that the market may be overheated and the risk is gradually increasing.
In the bull market, accurately grasping the changes in turnover rate can better understand the market sentiment and institutional trends, so as to make more wise investment decisions.