Have you ever wondered why retail investors tend to go bankrupt in every round of hot topic hype? Recently, the performance of a leading pharmaceutical stock provided an answer.

This wave of market activity was very extreme, but it also exposed the套路 of hype trading. In early December, the stock experienced three consecutive strong trading sessions, but the trading volume was extremely low, almost no one on the street was discussing it, and retail investors had no sense of participation. This stage was actually the most lucrative window—just that retail investors simply couldn't see it.

By mid-December, the trading volume suddenly surged to around 1.5 billion daily. It looked like the market was booming, and retail investors finally saw an opportunity. However, this was actually the end of the trend. Funds that had been accumulated at low levels earlier were frantically cashing out here, and the core gains had already ended by the time retail investors flooded in. Although there would still be sporadic spikes afterward, within less than a month, the stock price fell back to the initial breakout point where the volume was released— a typical "zero-sum game," and for most participants, even a "negative-sum game."

The most heartbreaking part was the subsequent trend. Retail investors who bought at high levels were trapped after the continuous limit-down stages, with almost no trading volume, and no one dared to buy the dip. When retail investors couldn't hold on and started to cut losses and exit, their accounts often lost more than 30%.

This is not an isolated case. Most hype cycles follow the same logic: when retail investors can see through the hype and want to participate, the stock price has already risen significantly. Entering at this point essentially means taking over the previous funds, playing the role of "chives."