The real fear for the market maker is not skilled or news-sensitive retail investors, but retail investors who do not follow the market maker's tactics and can engage in contrarian trading against human nature.



The common tactics used by market makers are breaking out with诱多 (trap to induce buying) and pulling back for shakeouts, exploiting retail investors' psychology of chasing gains, cutting losses, panic, and greed, to keep retail operations tightly within their script. Among those who can break out of this script, there are mainly three types:

1. Those with strict trading rules who resolutely follow them
No matter how the market maker manipulates with heavy selling or lifting, they operate only according to their rules, unaffected by emotions, making it impossible for the market maker to shake them through shakeout tactics.

2. Those who can endure loneliness and setbacks, and do not watch the market frequently
Even when facing prolonged oscillations and false breakouts by the market maker, they hold their core positions without wavering, ultimately only benefiting from passive lifts that allow these retail investors to profit.

3. Those with extremely light positions and very stable mentality
They test with small amounts of capital, and both gains and losses do not affect their mindset. The market maker cannot easily scare them away or exhaust them, allowing these retail investors to easily capture profits.

Ultimately, all of the market maker's tactics are designed to target human weaknesses. As long as you avoid greed, fear, impatience, and hesitation, and maintain a calm mindset, it will be very difficult for their tactics to be effective.
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