The Game Between Market Leaders and Retail Investors
Market bottoms often occur in times of panic. When investors' emotions shift from optimism to slight panic, they often buy on dips, unaware that the decline is the beginning of a significant correction, making it difficult to understand the changes.
In a bull market, before a big surge, the market often suppresses prices, causing retail investors to anxiously cut their losses while the leaders secretly accumulate shares. Once prices rise again, retail investors realize they have fallen into a trap set by the leaders.
When the market is euphoric, investors greedily chase after rising prices, increasing their capital, only to end up trapped at the market peak. The leaders create an illusion of a crash, leading retail investors to panic sell. After the leaders gain more control over shares, they then push prices up again, attracting new investors who will be trapped, in order to achieve their profit goals.