In the financial market, before a grand market trend unfolds, it usually goes through a phase of consolidation by the major players, one of the main purposes of which is to flush out the chips held by retail investors.

Take Ethereum as an example: when the price of Ethereum rises to 3700, if you do not take profits in time, the subsequent wave of plummeting prices will surely leave you regretting, lamenting the missed opportunity.

When the market rises again to 3700, you may be conflicted about whether to sell. If you resist the impulse to sell this time, yet the market experiences another significant drop, with the price falling to 3300, you will likely find yourself in deep regret. However, when the market rebounds to 3700 once more, it is likely that most retail investors will choose to take profits and exit the market.

Even if a few retail investors are relatively steadfast and can continue to hold, as long as the major players execute another round of consolidation, they will likely flush out most of the chips held by retail investors.

This is because the major players possess powerful big data analysis capabilities, allowing them to accurately perceive the trading behaviors and psychological changes of retail investors. Once they discover that most retail investors have sold off, the major players will seize the opportunity and decisively initiate the market trend.

This is precisely the fundamental reason why frequently trading retail investors often struggle to make profits in the market. After all, the weaknesses of human nature, such as greed, fear, following the crowd, and lack of patience, have long been understood by the major players. They skillfully exploit these weaknesses, causing retail investors to unwittingly fall into a losing predicament.