Dog traders love to push the market by exploiting the weaknesses of human nature such as fear, greed, and a sense of luck among retail investors. Dog traders and retail investors are at odds, often spreading false information, creating fake breakouts, luring investors into buying high or selling low, and targeting the tendency of people to follow the crowd.

What are dog traders afraid of?

First, they fear that retail investors can see through their tricks. They like to 'wash the plate' and 'raise prices', scaring retail investors at the bottom and making it difficult for them to enter the market during price increases or to buy at high levels. If retail investors can see through these tactics, not panicking at low levels and not chasing at high levels while maintaining good rhythm, dog traders will be at a loss.

Second, they fear disciplined retail investors. Dog traders specifically target those retail investors who chase rising prices and panic sell without a trading strategy, as they are easy to exploit. If retail investors have their own rules, like recognizing a fake breakout at a low level and entering the market in time, or decisively cutting losses at high levels to protect their capital, dog traders will have a headache, with no one left to exploit. Moreover, if retail investors are clear about their stop-loss and take-profit strategies, their losses will be minimal.

Third, they fear those who do not follow the crowd. Dog traders love to spread 'news' to lure retail investors who are looking for shortcuts and eager to recover their losses, but if there is real news, who would be foolish enough to share it? They exploit the retail investors' desire to make money easily to cut them down.

In short, dog traders harvest by exploiting the weaknesses of human nature, while retail investors need to see through these human tendencies, trade rationally, and establish clear rules to avoid being exploited, and may even turn a profit.