The Last Scam of a Bull Market: How to Avoid Becoming a "Cash Machine" for the Operators?

The Last Scam of a Bull Market: How to Avoid Becoming a "Cash Machine" for the Operators?

In a bull market, many investors blindly follow trends in pursuit of high returns and may ultimately become a "cash machine" for the operators. To avoid this situation, investors need to understand the operators' trading strategies and the real dynamics of the market.

Understanding the Operators' Trading Strategies

Operators typically manipulate the market through the following methods:

Building Positions and Washing Out: Operators quietly build positions at low levels, then use washing techniques to induce panic selling among retail investors, allowing them to collect shares at low prices.

Raising Prices and Selling Off: After accumulating enough shares, operators will raise the stock price to attract retail investors, then sell off at high prices to make a profit.

Creating Market Sentiment: Operators release positive news through media or social platforms to generate market heat, enticing retail investors to enter the market.

How to Identify and Avoid Traps

To avoid becoming a "cash machine" for the operators, investors can adopt the following strategies:

Stay Calm: In a bull market, market sentiment is often high; investors should remain calm and avoid blindly following trends.

Analyze Fundamentals: Focus on the fundamentals of the company and industry dynamics, choosing stocks with actual value rather than relying solely on market sentiment.

Set Stop-Losses: Set reasonable stop-loss levels before investing to avoid significant losses due to market fluctuations.

Diversify Investments: Do not invest all your funds in a single stock; diversifying investments can reduce risk.

Learn Operators' Techniques: Understand the common techniques used by operators and the rules of market operations to enhance your own market judgment skills.