Many people have been trading stocks for years but still can't understand turnover rate; honestly, it's a big trap. But I tell you, the turnover rate is actually the most direct way to find the main force. Master this indicator, and you'll see through what the market makers are doing.

Let's start with the basics: the turnover rate is the frequency of stock trading, reflecting a stock's activity level. The simple calculation is trading volume divided by circulating shares multiplied by 100%. For example, if a stock trades 10 million shares in a month, and the circulating shares are 20 million, then the turnover rate is 50%.

Why pay attention to this data? Because it helps you identify what the main force is doing. A low turnover rate indicates that both bulls and bears have similar opinions; the stock price generally continues its original trend, either slightly falling or sideways. But a high turnover rate is different; it shows significant disagreement between bulls and bears. As long as this active state persists, the stock price usually moves upward.

My personal experience is that different turnover rate ranges represent different intentions of the main force. Extremely low rates like 1%-3% suggest that institutions don't care, and retail funds are also not interested; generally, these are large-cap stocks or stocks lacking attractive themes. Starting from 3%-5%, some tentative positions are being built, but activity is still limited. When it reaches 5%-7%, bulls and bears begin to diverge, and the stock price slowly rises, which is likely the main force slowly accumulating.

The most interesting range is 7%-10%. Here, the main force's buying activity becomes more aggressive. If the stock is falling, it might be a sign of suppression and shakeout. When the turnover rate is 10%-15%, it's even clearer: the main force wants to control the stock, increasing accumulation efforts. After accumulating, they push the price up. When the rate hits 15%-20%, trading becomes more active and volatile. If volume increases at a low price, it might be a sign of imminent activation; if volume surges at a high price and the stock declines, caution is needed.

At 20%-30%, things get more complicated. At low levels, the main force might be aggressively accumulating to attract retail investors; at high levels, it could be distributing shares. Today's main players are smart—they don't sell large blocks all at once but break them into smaller orders to sell gradually, reducing friction costs and avoiding scaring retail investors into panic selling. When the turnover exceeds 30%-40%, it's super high, usually only seen in hot stocks, and the main force is likely swapping shares to new investors.

When the turnover reaches 40%-50%, attention should be high. The stock price fluctuates greatly, and most people can't hold on, increasing risk. At 50%-60%, it gets even crazier—buyers and sellers curse each other, often due to significant disagreement caused by news. When it hits 60%-70%, it's an extremely frantic state. If at the bottom, it could be a sudden major positive; at the top, a sign of distribution. Over 70%-80%, it’s off the rails, with huge uncertainty. During a decline, don’t catch falling knives.

My advice is: volume surges at low levels are worth watching; volume surges at high levels during declines I wouldn't personally intervene in, nor would I buy the dip during continuous drops. When I like a stock, I wait until it stabilizes and then enter from the right side.

Regarding the meaning of main force turnover, simply put, the main force uses high turnover rates to build positions, shake out weak hands, or distribute shares. Stocks operated by main forces over the medium to long term often have very low turnover rates but keep rising in price. This indicates long-term control by the main force, with low risk and strong persistence. Conversely, if a stock in a downtrend has extremely low turnover, it suggests no one is trading, especially after shakeouts by the main force—this should be closely watched, as the stock may have bottomed.

Another key point: when a stock's price is still relatively low, high turnover rate is usually a good sign. But if the stock has already risen significantly and is far from the main force’s cost basis, high turnover becomes a sign of distribution. This is the meaning of "massive volume at sky-high prices." During an uptrend, sustained high turnover is necessary; once turnover decreases, it indicates less capital is participating, and upward momentum weakens.

In practical experience: a turnover rate below 3% is quite normal, indicating no big funds are involved. 3%-7% enters a relatively active zone, and attention should be paid. A daily turnover rate of 7%-10% is common in strong stocks that are widely followed. If the daily turnover exceeds 10%-15% but isn't at historical highs or long-term peaks, it suggests strong institutional operation. If a correction occurs afterward, satisfying the 1/3 rule, consider entering. Over 15%, if maintained near dense trading zones, it indicates huge upward potential—characteristic of super-strong institutional stocks.

Also, keep an eye on stocks with consistently high turnover and rising prices, as this shows deep involvement by the main force. Since rising prices face profit-taking and stop-loss selling, more active turnover helps thoroughly clear out weak holders, raising their average cost and reducing selling pressure during upward moves.

Finally, newly listed stocks usually have very high turnover on the first day, which is normal. Because IPO subscriptions are cash-based, holdings are dispersed, and extremely high turnover on the first day indicates active fundraising. Continuous high turnover over several days with significant price gains far outperforming the market can have various reasons: the main force raising positions, short-term speculators, or old institutional players distributing shares. It requires combined analysis with other factors.

In summary, the level of turnover rate often indicates the stock's trading activity and the main force's intentions. Higher turnover means more activity and stronger buying and selling willingness, typical of hot stocks. Lower turnover indicates fewer interested traders, typical of less popular stocks. High turnover usually means good liquidity, easy entry and exit, but also suggests short-term speculative capital, high volatility, and greater risk.

My ultimate advice: don't chase high blindly. Understand the main force's intentions behind the turnover rate. Full turnover at low levels is a buying point; volume surges at high levels during declines are a selling point. Be humble, don’t go against the trend—that’s the greatest respect you can show to the market.