If the market is rising every day, then everyone will realize that the market is rising and choose to buy. But there is a key logical problem here: if everyone is buying, how can the main funds make a profit?
Therefore, the market will inevitably go through different stages such as shock, rise, pullback and shock again. This includes the pullback after the rise, shock after the pullback, and then continue to rise.
The same is true for the downward trend. The market will experience shock, fall, a short rebound after shock, and then shock and fall again, and finally form a sharp drop.
This process is designed to be quite complicated, and its purpose is to make it difficult for retail investors to grasp the market trend and make wrong trading decisions.
As the current market situation, when prices rise, retail investors begin to pour into the market, but often after chasing the rise, the market begins to fluctuate and pull back. Once the market fluctuates and pulls back, retail investors choose to cut their losses and leave the market out of fear of a big drop. And when retail investors leave the market, the main funds will push the market up again.
If the market rises endlessly, retail investors start to make profits as soon as they buy, and then sell immediately, then where does the profit of the main funds come from? The volatility and complexity of the market provide room for major funds to operate, enabling them to make profits from the buying and selling of retail investors.