he secrets that major players in the stock market don't want retail investors to know are the two main characteristics they exhibit before they start exiting their positions. Remember, major players typically exit at high prices following a continuous rise.
• The first characteristic is a high-volume increase or a significant opening surge followed by massive fluctuations, indicating that the price isn't rising much anymore, also known as volume self-lifting.
Major players attract a large number of followers by increasing volume or opening significantly higher, allowing them to sell at good prices. However, they have too many chips to sell off all at once like retail investors.
So what do they do? They follow up with high-position fluctuations, jumping up and down to create the illusion that they are accumulating more, luring retail investors to continuously enter the market. For example, if the price surges and then falls back within a day, the major player sells a batch. If the next morning starts with a significant drop followed by a violent rebound in the afternoon, it gives retail investors the illusion that the price won't fall further. After repeating this process a few times, retail investors let down their guard and increase their positions. It's like crying wolf several times; when there's no crash, there's no silver lining. During this process, the major player can smoothly offload their holdings.
• The second characteristic, although the most accurate, is also the most complex and difficult to understand. I summarize it in six words: "The stronger it is at the top."
This is reflected in the trend feeling very strong, and in technical indicators, it manifests as divergence after fluctuations or creating new highs after continuous adjustments. This is the logical principle behind divergence and contrarian indicators.
If you can fully understand this, then you can beat 99% of retail investors.
