Tianqing VS Principal (Using trading thinking to analyze a wave)
Market Maker (Interest)
Initially, the two held 1000 shares each
The market maker dropped 10% to maintain liquidity
Tianqing saw that the situation was not right and sold 100 shares (remaining 900 shares)
The principal saw the market crashing and sold 200 shares (remaining 800 shares)
Tianqing saw the market was still falling and helplessly sold 500 (remaining 400 shares)
The market maker saw that no one was buying and in order to provide liquidity, dropped 20% again
At this point, the market panicked
The principal immediately cleared their position (remaining 0 shares)
Tianqing followed closely behind (remaining 0 shares)
The market maker was waiting for new buyers
The two seemed to be abandoned
Perhaps from the beginning, you both could have considered consolidating a bit to let new people in, but both sides acted too hastily, leading to market liquidity dropping to 0
Or perhaps from the start, if one side had been ruthless enough to sell everything, the other side would not have reacted quickly
From the market's perspective, analyzing this event shows an initial small drop, a mid-term gradual drop, and a later large drop, a typical high point short
Here’s a phrase for you both: when you want to be kind to someone, you should give little by little; when you are determined to do harm, you should do it thoroughly, leaving no room for the other party to counterattack, or making them fear you
No one will care about your story; people only care about the last person who survives
