Let’s analyze the trading market logic of Tianqing and the principal in this operation:
Both of them initially held 1,000 shares. The market maker first dumped 10% of the chips to maintain market activity. Tianqing got scared and sold 100 shares, leaving 900; the principal, seeing the situation was not good, followed suit and sold 200 shares, leaving 800. As a result, the market kept dropping harder and harder, and Tianqing couldn’t hold on anymore and dumped 500 shares, leaving only 400 shares in hand.
The market maker saw that no one was taking over the shares and directly dumped an additional 20% of the goods, which caused complete panic in the market. The principal reacted quickly and cleared out; Tianqing also hurriedly cut losses, and in the end, both became empty-handed. The market maker, on the other hand, was not panicking and was just waiting for new investors to come in and take over.
If you ask me, these two made a fatal mistake from the very beginning: either they should have held steady and waited for new funds to enter the market, but they hurriedly dumped and wiped out the liquidity; or one of them should have directly gone all-in and caught the other off guard. Now, the market trend has turned into a classic bear scenario of "small drop - moderate drop - crash."
A reminder for these two traders: doing things is the same as trading; if you want to be kind, give small rewards slowly; if you want to be ruthless, take down your opponent in one go, and don’t give them a chance to counterattack. No one in the market cares how you fight among yourselves; in the end, the hard truth is that whoever survives can make money!
The market changes every day, and don’t let your mindset collapse too tightly. If you always feel like you're half a beat behind and are afraid of being disturbed by market noise, feel free to chat about it.
