Let's talk about "luring to sell" and "luring to buy."

Having experienced the volatile March and April indices, everyone should have a deeper understanding of "luring to sell" and "luring to buy."

First, let's talk about the essence.

There is no such thing as real "luring to sell" or "luring to buy" in the market; they are all the results of capital game.

The so-called "luring to sell" refers to the short sellers continuously suppressing the market, but the long buyers are absorbing the chips at low prices.

The market seems to be about to collapse, but in fact, the long buyers have already taken the initiative.

The so-called "luring to buy" refers to the long buyers continuously pushing up the market, while the short sellers have already secretly taken profits.

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The market seems to be thriving, but in fact, the short sellers have already started brewing a conspiracy.

The game between long and short positions is not only on the surface but also more hidden.

That is to say, what retail investors see is not the truth of the market, but what the real big players want retail investors to see.In fact, the entire market is rife with undercurrents, and the real game is the one happening underground.

The temptation to buy and sell is a long-standing phenomenon.

If one must analyze in detail, the essence of enticing to buy and sell is the key for the main force to earn excessive returns.

Let's talk about how the temptation to sell comes about, and you will understand why it is the key to making money.

The underlying logic of enticing to sell is the deliberate reduction of the purchase of chips, creating a situation where there is a lack of long positions.

The advantage of this approach is that it leaves the short position unable to sell the chips, and they can only sell at a low price.

It's like when the market is falling, there are few people to take over, and it falls continuously.

Once the short position is in a hurry to recover funds, it can only sell at a low price.

The essence of enticing to sell is to create such an atmosphere, where one can obtain chips at a cheaper price.Some people may be curious about how to determine whether it is a trap or a distribution of stocks.

To be honest, it's not easy to distinguish between the two on the trading board.

The interpretation on the trading board is that there is a large amount of selling by the bears, and the bulls are in disarray and unable to defend.

That is to say, even if the real bulls are setting a trap, they will not be discovered by retail investors, or there will be too many signals on the board.

If you watch the board, you can see that there will be some counter-purchase behavior at some relative low points within the board.

But from a data analysis perspective, there will basically be no clues.

Even if the main force takes the chips, it will be done quietly, and retail investors will not be able to see it through simple methods.

As long as the order is broken, it can easily deceive the eyes of ordinary retail investors.

When setting a trap, the main force will do its best to deceive retail investors until the chips are cleaned up smoothly.

Some people will also ask, if I just don't sell, what can the main force do to me?It can only be said that you are not part of the batch of chips that the main force wants to wash out, that's all.

The main force's bear trap is not for those stubborn bulls to watch, but for those who chase rises and cut losses to see.

At different stages, the main force's bear trap tactics and chip-washing methods are not quite the same.

For example, the bear trap during the rise often does not last long.

Because the goal of the rise is to sell goods, if the bear trap lasts for a long time, it will lead to a loss of morale.

At this time, if you want to lift the second wave of the market again, the difficulty will be very great, or the difficulty of selling goods at a high position will also be very great.

Popularity is what the main force pays the most attention to during the rise.

For example, the bear trap during the fall often lasts a long time.

Because the bear trap during the fall, or what we call digging a pit, is for the purpose of collecting chips at the bottom, not washing the chips.

The collection of chips at the bottom is not a matter of a day or a moment, but a long and complicated process, short for several months, long for several years.The so-called "luring to sell" in a strict sense cannot be called "luring to sell" anymore; it is a true short-selling, and then the layout begins.

The so-called "luring to sell" refers to a situation where everything is in the hands of the bulls, but it gives people the feeling that it seems to be shrouded in the shadow of the bears.

The end of "luring to sell" is, of course, a breakthrough with increased volume.

This means that the main force has finished what it wants to do, and the chips have returned to its hands, and it is about to start working.

The next stage after completing "luring to sell" is to lift, or to start "luring to buy" again.

"Luring to sell" and "luring to buy" are intertwined. When you see the main force starting to lift with great fanfare, its goal is to raise the price and sell.

"Luring to buy" is more common than "luring to sell."

In the middle and late stages of the rise, the main force is basically "luring to buy," not only at the absolute high point of the sale to "lure to buy."

"Luring to buy" does not mean that the stock price does not rise, just as "luring to sell" does not mean that the stock price does not fall, it is the same principle.The term "luring to buy" refers to a situation where the main force, or the major shareholders, are actually looking to sell their stocks but still pretend to be buying in large quantities, leading retail investors to believe that they are actively purchasing.

It may appear that there is ample buying interest, with many and large buy orders, but in reality, the main force has already secretly retreated by breaking down their large orders into smaller ones, disguised as retail investors.

It is actually quite challenging for the main force to rely solely on a single large bearish candlestick at the top, accompanied by a significant volume of selling, as a way to offload their shares.

The majority of the main forces actually sell their shares quietly and stealthily, often withdrawing while still pushing the price up.

There are too many ways for the main force to lure investors to buy, with the most common being a fake breakout. Theoretically, when a stock price breaks through to a new high at a relatively high level, it is considered a definite positive signal.

However, in reality, this is often the situation where luring to buy occurs, especially with some small and medium-cap stocks where the main force can dominate the market.

They don't have to worry about the shares they acquired at high prices becoming worthless because they are all self-traded shares. It seems lively and bustling in buying, but in fact, they have already fled recklessly.Of course, the main force's bullish trap is certainly not for those retail investors who are afraid of heights, but for those who chase rising prices and cut losses.

When you find a stock that has reached a new high in its share price but no longer rises rapidly, it is already in the process of setting a trap.

Because the rise requires a single burst of momentum, not a back and forth.

The stagnation at high levels is the most obvious form of a bullish trap.

But even this most obvious one, many retail investors still can't react in time.

When you find that the turnover rate at high levels is very high and the funds seem to be buying, buying, buying, the share price will not deceive.

Funds enter the market to make money, so a significant increase in volume must lead to an increase in price. If it doesn't rise, it will naturally form selling pressure, and then it will plummet.

The T+1 trading system is the core of the bullish trap. The risk of buying at the beginning of the day in pursuit of rising prices is the highest because it cannot be sold on the same day.

Especially in the later stages of the market, that is, after the continuous rise, entry must be extremely cautious, as it is very easy to be stationed at high levels.Let's talk about some reality now.

The market is transitioning from a bear trap to a bull trap.

When in March and April, retail investors were unanimously bearish, the market struggled to offload its positions and had to follow the bear trap to deceive people into buying in.

And when the market trend comes, and retail investors start to switch from being bearish to bullish, the market has the opportunity to offload its positions, and thus a bull trap scenario will emerge.

The essence of the market is the chips, and behind it is human nature. Bear traps and bull traps are also formed based on the weaknesses of human nature.

So, do not believe what you see. It is correct to sell high and buy low, and most of the time, chasing the rise and killing the fall is wrong.

Picking up the money is the best policy, making more or less is always much better than losing money.