In the financial market, the dealer's wash aims to clear the floating chips in the market, especially the chips in the hands of retail investors. If the retail investors' chips are not cleaned to a certain extent, it will interfere with the dealer's subsequent trading plans, which is absolutely not allowed by the dealer. In fact, as long as retail investors continue to pay attention to the market, the dealer will definitely have a way to wash them out. The dealer often uses a variety of wash methods, among which three moves can be called 'killer skills', often making it difficult for retail investors to cope.

'Grinding': Dealers often use the 'grinding' strategy to grind the bottom. In this process, the time span is stretched extremely long, and the price trend shows a pattern of more declines than rises, for example, rising by 1 unit but falling by 2 units. Under this long-term grinding, retail investors who lack patience often find it unbearable and ultimately choose to exit the market. 'Pitting': After experiencing the 'grinding' phase, some retail investors still hold their ground. At this point, the dealer will resort to the 'pitting' tactic. They create a rapid drop in price, creating an illusion of a breakdown and a bottom that is hard to find, causing retail investors to feel fear and extreme unease about the subsequent price trend, unsure of when the decline will stop and how much further it will go. Driven by this panic, many retail investors rush to cut their losses and exit, missing the opportunity to re-enter. 'Coercion and Enticement': If the first two tactics do not achieve the desired washing effect, the dealer will unleash the 'coercion and enticement' tactic. Specifically, the dealer first raises the price for a test, giving retail investors a chance to break even or make a small profit, enticing them to take profit. As for those retail investors who remain unmoved, the dealer will control the price to fall back naturally, forcing this group of retail investors to exit helplessly.

It is particularly important to remind that cryptocurrency trading is not protected by law in China, its trading market lacks effective regulation, price fluctuations are severe and often manipulated, and investment risks are extremely high. Investors should stay away from cryptocurrency trading and choose legal and regulated investment channels. What impact do wash methods have on the stock market? How to identify dealer wash behavior? What are the common means of dealers unloading stocks?