The Core Tactics of the Market Maker

It's almost impossible to shake off retail investors. As long as retail investors are still watching the market, the dominant players have ways to push them out. If retail investors are not shaken out to a certain extent, it will affect the main players' trading plans, which is something they cannot allow.

The main players have many tactics to shake out retail investors, and the three tactics that frustrate retail investors the most are as follows. Typically, under these three tactics, very few retail investors can remain calm.

🟨 'Grinding,' the main players often use the tactic of 'grinding' to consolidate the bottom, dragging the time very long, and the price just doesn't rise. It goes up 1U, down 2U, and retail investors with poor patience will be 'ground' out by the main players.

🟨 'Pitfall,' after 'grinding,' there are still many retail investors who haven't been shaken out, so the main players will dig a 'pit' to continue shaking out retail investors. The main players create 'pits' that cause the price to drop sharply and rapidly, creating a feeling of a breakdown with no bottom in sight. This instills fear in retail investors, making them unsure how much longer the price will fall or how deep it will go. Many retail investors have been trapped by the main players and never get a chance to climb out.

🟨 'Coercion and Inducement.' After going through the above two tactics, if the shaking hasn't reached the main players' ideal level, they will resort to 'coercion and inducement' to shake out again. The so-called 'coercion and inducement' refers to the main players raising the price for testing, allowing retail traders to break even or make a small profit, prompting them to take the profit. For those who don't take the profit, the main players will control the price to naturally decline, forcing retail traders to exit.