Let’s share the whole process of how the banker reaps the profits!
The dealers in the cryptocurrency circle include but are not limited to market makers/teams with many chips in a coin/project parties/exchanges. It is more likely that multiple interested parties will unite to make dealers together, because it is difficult for a single party to make dealers to pull up or smash the market. The detailed process of dealers is as follows: analysis → position building → trial trading → consolidation → initial rise → wash trading → pull up → shipment → rebound → smash the market → reincarnation cycle... Of course, not all of the above processes are necessary. Many dealers will omit some of the steps, and different dealers have different trading methods.
1. Preparation
Before the dealer/market maker starts to intervene in a certain currency, they will collect all kinds of information about the project, including the total amount of chips, accurate statistics on unlocking status, the cost of investors at all levels, chip dispersion, community popularity assessment, etc. After collecting information, they will set a pull target based on the amount of funds they can mobilize.
2. Position building phase
Before building a position, the banker will conduct a variety of investigations and research, covering market sentiment, BTC market trends, macroeconomics, policy risks and other aspects. Usually, the banker will choose to enter the market when the market is generally pessimistic, market sentiment is generally low, the confidence of the leeks is frustrated and the prospects of the currency are pessimistic. Building a position As the saying goes, when retail investors are afraid, the banker is greedy. Depending on the strength of the banker, the proportion of its holdings is also different. Short-term bankers can control 10%-30% of the number of chips to operate, while long-term bankers often need to control more than 40% of the chips. If it is a dog meme, the banker must hold more than 80% of the chips before he is willing to pull the market. Of course, this depends on the strength of the banker. Under normal circumstances, the banker will not build a position at a high position. The banker's position building methods mainly include the following: - Negative news in the currency circle, such as technical failures of the project, rumors of stricter supervision, etc., to suppress the price of the currency, trigger panic selling, and thus absorb chips at a low level. - Short trap: Use technical means to create the illusion of a downward price of the currency, induce retail investors to sell, and the banker will take over at a low level to complete the layout of the position. - Massive eaters: Concentrate funds to buy a large amount of target currencies in a short period of time, push up the trading volume, attract followers, and secretly collect chips. - Rebound hoarding: In the rebound stage after the currency price falls, gradually buy, take advantage of the psychology of some investors to unwind or take profits, and expand positions. - Ambush new projects: When the target currency-related projects have major technical upgrades, new application scenarios, or strategic cooperation, etc., layout and build positions in advance.
3. Trial stage
During this stage, the dealer raises or suppresses the price of the currency in a small range, observes the market buying and selling behavior, trading volume, pending orders and emotional fluctuations, and understands key information such as the degree of chip lock-up, the strength of the follow-up market, and the resistance and support levels, providing a basis for fine-tuning the subsequent trading strategy. However, trial trading is not a must. Some dealers may directly start to raise the price or take other actions with their keen market sense and rich experience. The timing of trial trading is flexible and can be carried out at the right time during the whole process of dealership.
4. Consolidation and shock stage
Consolidation is to optimize the chip structure and accumulate upward energy. It can be divided into low, medium and high consolidation according to the price position. The price trend of the currency is mostly rising, falling and consolidation, among which consolidation takes up a lot of time. At this stage, the price of the currency fluctuates smoothly and the direction is unclear, which tests the patience of investors. The dealer uses this to consolidate the cost of holding positions, clean up floating chips, and wait for the opportunity to pull up. This stage often tests the patience of leeks the most because its trend is more annoying.
5. Initial stage
After the initial preparation, the dealer started the initial rise, moderately raised the price of the currency, attracted the market's attention, stimulated the enthusiasm of off-site funds to enter the market, and reduced the resistance to subsequent rise. However, in order to avoid exposing the intention too early and causing follow-up and regulatory attention, the initial rise was limited, and then the price of the currency fell slightly, clearing the profit-taking and unstable chips, laying a solid foundation for the subsequent steady rise.
6. Wash-out phase
After accumulating a certain amount of chips, the dog dealer will adopt a strategy of suppressing the price of the currency in order to drive out the followers and force early holders to sell. This can not only absorb more chips at a low level and reduce the cost of holding positions, but also eliminate weak-willed retail investors, reduce the subsequent pressure of pulling up and selling, and create conditions for high-priced shipments.
7. Pull-up stage
After a series of operations such as absorbing funds, testing the market, and washing the market in the early stage, the long and short sides have formed a high degree of unity to a certain extent. After the dealer controls a large number of chips and stabilizes the market situation, the price of the currency will rise naturally. In the pull-up stage, the price of the currency rises rapidly. The dealer attracts more investors to follow suit and buy by cleverly using factors such as market heat, technical indicators, and good news, pushing the price of the currency to new highs and achieving rich profits.
8. Shipping stage
As the saying goes, "If you know how to buy, you are an apprentice; if you know how to sell, you are a master." Delivery is the key goal of the banker. Only by successfully distributing chips can the book profit be converted into actual income. Distribution is the most critical stage in the process of banker, because only by successfully distributing chips can any banker convert the book profit into actual income. To this end, the banker will use all his tricks, such as concocting the illusion of market prosperity, using media opinions to guide emotions, using related accounts to create an active atmosphere through false transactions, etc., to induce the ignorant leeks to take over and ensure smooth delivery.
9. Rebound Phase
After the price of a currency falls, it often rebounds briefly, which is the rebound stage. When the price of a currency drops to near the profit line due to the dealer's shipment, the price of the currency will be slightly raised due to the "bottom-fishing" mentality of some leeks and the demand for shipping their remaining chips, creating a rebound. However, this is often short-lived. After the rebound, the price of the currency is likely to continue to fall, or even hit a new low. If investors rashly "bottom-fish", they are very likely to be trapped. The rebound stage is a secondary stage in the process of dealership, and some targets do not have a rebound process.
10. Crash Stage
Passive selling: When encountering unexpected negative news, such as major technical loopholes, disputes between project parties, sudden changes in regulatory policies, etc., a panic selling wave is triggered in the market, and the dealer may be forced to smash the market to reduce losses. This behavior may cause the dealer to abandon the dealer and leave the market, or look for opportunities to absorb chips at a low price after the smash, and control the market again. Smashing the market after selling at a high price: After the dealer successfully ships at a high price and locks in profits, the remaining small amount of chips is no longer relevant to the overall situation. At this time, smashing the market can not only suppress the currency price, but also lay out the layout for subsequent low-price absorption of chips, without considering the market image and cost. Smashing the market for a new market: After a round of speculation ends, the dealer will use the remaining chips in his hands to deliberately smash the market for the next round of low-cost absorption of chips, create a short-selling atmosphere, induce investors to sell, and test the market bottom and investor psychology at the same time, paving the way for the launch of a new market. Start a new harvest cycle.
No matter what kind of banker it is, it is always inseparable from the three stages of building a position, raising the price, and shipping. This is the most basic "trilogy" of bankers. Stand from the perspective of the main force and think about the main force's intentions! The currency circle is always repeating yesterday.