Viewing the Market from the Perspective of the House: The Truth About Retail Investors Being Driven Away

The house controls the market rhythm, and a common operation before driving up the market is to clear out retail investors. Why? Because making retail investors wealthy alongside the house does not align with the house's interests. Only by being fully prepared can the house maximize its profits.

How to Drive Retail Investors Away?

1️⃣ Create Panic

The house often suppresses prices, releases negative news, or guides market sentiment fluctuations, leading retail investors to believe that the market is about to crash, prompting them to panic sell and exit.

2️⃣ Shake Out and Clean Up Chips

By causing significant fluctuations, the house forces retail investors to surrender their shares, while also causing them to miss out on subsequent market rebounds.

How Should Investors Respond?

• Calmly Analyze and Avoid Blind Panic

During severe market fluctuations, think from the house's perspective and be alert to being driven by emotions.

• Set Stop-Loss but Do Not Exit Randomly

Avoid “cutting losses” in panic while keeping an eye on the main capital flow to distinguish between a shakeout and a trend decline.

Summary: Clearing out retail investors before the house drives up the market is standard practice; maintaining a stable mindset and not being frightened away by short-term fluctuations is essential to truly seize market opportunities.