What exactly does the term “sweep” often used by market makers mean?
I will only say this once, so remember it.
The market value management process of a serious project is full of gambling and calculation.
It is not like the meme where the price goes straight back to zero after a sudden rise and fall, a "pumping" without any skills
These are two completely different things.
The complexity of the former requires market makers to have extremely advanced psychological attainments and secondary market game skills.
The current price of M-coin is $0.03. He plans to raise it to $1, a 30-fold increase.
The project owner now has $10 million in cash reserves.
❌❌Negative example❌❌
1.
The market maker spent $1 million to raise the price from $0.03 to $0.1, a 3-fold increase.
2.
After reaching $0.1, a large number of retail investors suddenly dumped the stock, and the price dropped back to $0.05.
3.
It is estimated that many retail investors bought a lot of stocks at $0.03 in the first two days before the market maker pulled the price.
Now they found that the price of the currency has increased by 3 times, so they sold all of it to the market maker and took profits and left the market.
4.
Retail investors made 3 times their money and left, and the market maker lost $500,000 to the retail investors.
The actual result of the final board is $0.03->$0.05, but $1 million in cash was wasted
✅✅Positive teaching materials✅✅
1.
The market maker first spent $100,000 to raise the price from $0.03 to $0.04, but found that no one was selling.
2.
Another $100,000 was spent to raise the price from $0.04 to $0.05
3.
Some retail investors started to sell
4.
It is estimated that many retail investors bought some at $0.03 two days before the market maker pulled the price.
The price of the currency was smashed to 0.035 by retail investors
5.
Market makers began to let the market fall to the 14th, all the way down to $0.024, and it looked like it was about to return to zero.
6.
Those retail investors who bought at $0.03 but didn’t sell at $0.05 began to regret it. Seeing that there was no sign of the market stopping the decline, they had no choice but to bear the floating loss.
7.
Market makers began to push the market back up, $0.024->$0.031
8.
The floating losses of retail investors finally recovered. Retail investors who bought in step 4 will sell in a hurry.
9.
Market makers raised the price from $0.03 to $0.04 again, and found that selling pressure appeared again.
10.
Market makers have to repeat steps 5 to 7 several times, sweeping the chips back and forth.
When will the sweep end?
When the price was raised from $0.03 to $0.04 for the Nth time, it was found that the selling pressure gradually decreased until it became 0.
This means that between $0.024 and $0.04, the chips of external funds have been "swept away", and there is almost no chip cost in this range that is unknown to the market makers.
11.
After sweeping the price range of $0.024~$0.04, the next step may be to sweep the higher price range of $0.04~0.06
Just like climbing up the stairs step by step, go up one step, sweep one step, if it is clean, go up another step, if it is not clean, go back and sweep again.
Finally, all the retail investors’ chips at each step were swept away, achieving maximum cash utilization.
$0.03->$0.05, and only spent $250,000 in the end
——————————————
concept:
Sweeping chips means that market makers/dealers use the smallest possible capital cost to allow retail investors to hand over chips within a relatively small price range in the dark forest, ultimately achieving higher control and smaller market value management losses.
Function:
1. Detect the chip cost of external funds on the market
2. Reduce your own market value management costs
3. Ensure that retail investors cannot obtain low-priced chips in the subsequent market-making cycle
4. Ensure that there is no unknown selling pressure from above
5. Detecting insider trading
...
Reprinted from: @AiCoin官方
