Let me tell you a little story. There was a group of rich people who got together and hyped things up to make huge profits. One day, they found a batch of plates that looked particularly good on the market, so they decided to hype them up. After market research, they found that there were 10 million plates in total, and the price of each plate was about 10 yuan. These rich people started buying plates at 10 yuan each, and collected 5 million plates first, which was the bottom warehouse. Now the price is reduced to 20 yuan, and there are still 5 million plates in the market, which is obviously not cost-effective. They want to buy more plates but are unwilling to pay a high price. Now they have 5 million plates in their hands, which can control the price. Many people in the market are unwilling to sell when they see someone buying plates, and want to wait for the price to rise before selling. These people bid 9.5 on the first day, and their own people bought their own plates. On the second day, they sold their own plates at 9 yuan. Seeing that the price of plates has dropped a lot, some people who have plates are anxious and start to sell them one after another. This is a trap to sell. There are not many people selling, and some people are still waiting and watching. The price is 9-10 yuan every day, up and down. Some people can't stand the daily fluctuations and lose money, so they sell one after another. This is the shock wash. Suddenly, there is news that this batch of plates is defective. The price of the plates drops to 6 yuan. In fact, they sell to themselves. Of course, there are many people who are afraid that no one will want the plates and the price will continue to fall, so they follow suit and sell. This is the negative wash. Then after the market calms down, it slowly returns to 9 yuan, and suddenly drops to 7 yuan. Many people think there is bad news again, so they sell quickly. In fact, it returns to 9 yuan in a few days. The price has dug a big pit and quickly filled it up. This is the pit digging wash. After a series of operations, the number of plates is about 8 million, and the cost is about 8 yuan. Do you know why the wash now? Use a low price to get more chips. You can't spend 20 to buy one, and then pull it up to 30 and no one wants to throw it in your hands. By the way, wash out the undetermined people so that the pull-up can be smooth and reduce the cost of pull-up. Isn't it attractive at a cost of about 8 yuan? After this operation, the price went up and down every day, but the general trend was rising, rising to 15, and then jumping to 20. This plate became popular, and it could be bought for 10 yuan before, but now it has risen to 20 yuan. As the popularity increased, more people paid attention to it, and then the plate seemed to have eaten something, and it continued to rise, slowly reaching 30. Many people couldn't sit still, and heard that it would rise further, so they quickly bought some to make money. Sure enough, it soon reached 40, and the market expected it to reach 80.When the price rose to 50, the analysis said that this batch of plates contained many trace elements, which were beneficial to both men and women. It would rise to 200. Everyone bought like crazy, and this group of rich people sold like crazy. The cost of 8 yuan rose to 50, plus the purchase of the pull-up, a total of 9 million plates, now it has reached 450 million. There are too many people buying, and it is still rising. They sell while rising, and sell 7 million, making nearly 400 million. When the market sentiment drops and the price drops slightly, this group of people starts to sell the remaining ones, selling all the way to 30, then buying and selling to 20, then buying again, and selling to 10 yuan, so that 2 million plates can be made into 5 million without much cost. Then continue to wash the plates and collect chips for a new round of harvesting. Many people have misunderstandings about the dealer's washing behavior, and always think that the dealer washes the plates for the chips in the hands of retail investors. In fact, the dealer washes the plates itself, not simply to take the chips of retail investors. In more cases, it is to reduce selling pressure and operating costs when the price rises, which is more convenient for subsequent pull-ups and high-level shipments.
The purpose of the banker's wash
The main force is about to start washing the market. I want to hold on to my chips, I want to cover my position, and I will never get off the market. Whenever the price of a currency falls, there are always some people who will subjectively think that it is a wash, and that the dealer will grab a large number of chips when it falls. In fact, if the dealer wants to grab chips, it must be in the form of pulling up, and when the dealer keeps suppressing the market, there must be more retail investors entering the market. In theory, the dealer cannot effectively get chips during the wash process, and can only exchange chips. Because the wash itself is directed by the dealer, and the director of the wash must sell a large number of chips to scare retail investors. So why does the dealer go to great lengths to wash the market if he can't get the chips? What is the purpose? In fact, the dealer's purpose is also very simple, which is to get relatively cheap chips through washing the market.
Let me give you an example. The dealer wants to build a position below 10 yuan, the lower the cost, the better. Now the price of the currency is 8 yuan. The dealer has many ways to do it, such as pulling it from 8 yuan to 10 yuan, and then absorbing chips in a long-term sideways market. For example, pull it from 8 yuan to 10 yuan, fall back to 8 yuan, and then pull it to 10 yuan to absorb chips. For example, suppress it from 8 yuan to 6 yuan, pull it back to 8 yuan, suppress it to 6 yuan, and then pull it to 10 yuan to absorb chips in a range. Various methods can achieve this goal, but the comprehensive operating costs are different. The dealer is just looking for the so-called lowest cost method.
In the first way, the cost may be close to 10 yuan, and the coin price is 10 yuan. If there is a systemic risk and the coin price plummets, the dealer may not even have a way out. In the second and third ways, the dealer's cost may be only about 8 yuan, giving himself a sufficient safety cushion. Therefore, when the dealer absorbs the chips, he will definitely wash the market, clean up the floating chips that he wants to sell, and put them into his own pocket. For washing the market, the dealer has a second purpose, which is to reduce the selling pressure during the pull-up. This is actually to reduce the cost of the dealer's operation, which is essentially the same as collecting chips at a low price. On the way up, there will definitely be people following the trend and entering the market, and there will definitely be capital flight. If the capital fleeing is more than the capital following the trend, there will be selling pressure, and the selling pressure needs to be eaten up by the dealer himself with real money, otherwise the rise will be hindered.
However, from the perspective of the dealer itself, they are unwilling to take chips at high positions. Instead, pulling and withdrawing is what every dealer wants to do. To achieve this effect, one thing needs to be done, which is to wash the market. Washing the market itself is to scare out panic orders on the one hand, and to attract followers on the other hand. The followers here are different from the traditional followers. The followers who can enter the market during the falling wash are firmly optimistic about the coin. For example, the dealer raises the price of the coin from 10 yuan to 15 yuan, and then washes the market between 13-15. Then the original distribution of retail investors' chips is below 10 yuan, and now it is in the range of 13-15. In other words, when the price of the coin was raised to 20 yuan, the profit of the chips was 100%, but now it is only 30-40%, and the selling pressure is definitely different. When the price of the coin rises to 15, 16, and 17 yuan, the number of people selling will be relatively reduced, and the followers who buy may prevail. In this case, the dealer has left room for operation. If handled properly, it is completely possible to achieve pulling and withdrawing at the same time. Washing is the full exchange of chips, which can be said to be the basis for the dealer to operate a currency well.
