Do you think it’s the big players dumping stocks?

No, it’s the retail investors panicking.

Recently, the market has been rising sharply, and everyone expects a pullback. Many need funds, and when there are many, the big players are both buying and selling, which increases the liquidity of funds, causing retail investors to chase the upward fluctuations.

The current period is a consolidation phase, as the anticipated profits have been reached, the funds bought by the big players are being pulled back, but they are still selling. Retail investors will start to panic and dump their stocks. The more they dump, the lower the price goes, and the big players gradually accumulate shares in small batches.

Why does it slow down when there are many? Because everyone knows the price is rising, and the sellers know too, so they will sell during every round of price increase, causing the price to rise slowly.

When the market is down, everyone is afraid that their holdings will rapidly depreciate, leading to low-priced selling, which is the retail investors panicking, and this is also driven by fear.

So going down is easy, but going up is hard.

Fortunately, the market is cyclical; as long as you control your positions well, it’s like spot trading, so there’s no pressure on funds. It’s just a matter of when to choose to stop, whether to choose to lose or to earn, all depending on the time cycle.

If you have no time, no funds, and do not cut losses to admit mistakes, this market is very harsh and will definitely teach you a deep lesson.