[The bottom you think you're catching is actually a pie in the sky drawn by the market maker]

The more the price drops, the more retail investors buy, thinking they’re getting a bargain? The truth is exactly the opposite: the more you try to catch the bottom, the more the market maker laughs. Why do you always catch the falling knife? The market maker’s bottom card for distributing shares is actually very simple:

Even if the price is cut in half, the market maker still makes money.

Assuming the market maker's cost is 10 yuan, and it drives the price up to 60 yuan, it can distribute shares profitably anywhere in the 30 to 50 range. Moreover, during the uptrend, the market maker uses algorithms to repeatedly buy low and sell high, continuously lowering its cost. Every rebound during the right-side downtrend is just a trap set by the market maker to offload shares.

Once retail investors are trapped, the market maker dumps even harder.

When countless retail investors are trapped at highs, the major player wants to redo this stock, it will smash the price down hard. You will find that the lower it breaks down, the smaller the trading volume, because it has fallen deep enough that no retail investor dares to catch it. The market maker will repeatedly oscillate at low levels to wear down retail investors' psychology, until everyone is forced to cut losses in despair and hand over their chips. Only when the chips are completely washed out and there is no room to fall further, then the next bull market cycle may come.

💡 Honest words to traders:

The opportunity you think you see is actually a trap set by the market maker. Don't buy just because it dropped, don't chase just because it bounced. Be patient and wait for the chips to settle, for the bulls to completely surrender, for the major player to finish accumulating, and only enter when the trend truly reverses!