The core of this piece lies in the middle section: “The Bull Market Psychology Shift of the Leek Sheep.” I don’t usually post in the early morning — especially after an update the night before — as it tends to wear a person down.
But today’s situation is genuinely special, worth a reminder to every one of you — especially you.
First, a word of caution: regarding the upcoming moves in the trading arena, I’d urge everyone to take it easy. I mean it — really take it easy. I won’t say anything more direct than that, because everyone has their own thinking and judgment, and nobody has the right to stand between you and your desire to make money, right?
Regardless, Master Chi hopes you make a fortune — and more importantly, that you can hold onto and lock in your profits. Making money and keeping money have always been two very different things.
Now let me explain why I felt the need to send this reminder today.
Understand this: after several consecutive days of sharp gains, in any context, this has historically been the most dangerous window — especially under this kind of sudden, shock-surge rally.
The silver lining is that, despite the danger, the psychological states at play right now are actually the cleanest they’ll ever be. Because in the early stages of a great bull era, everyone’s head is still clear. Here’s how each group is thinking:
Dragon-Tiger Kings: “Good. I’ve positioned my capital across the major blue-chip stocks in the trading arena. My strategic objective is complete — I’m satisfied. That said, I wouldn’t mind deploying some additional funds to trade the swings and boost returns. Overall, my core goal is done. Now I just wait patiently.”
Sickle Wolves: “We’re sensitive — the moment it opened up like this, we already knew what the top-tier players were thinking. I’ve hit my profit target. Good, good. Time to take money off the table and prep for the next phase.” The Sickle Wolves are among the most agile players in the game — always the ones pulling the rug or throwing fuel on the fire.
Leek Sheep: “Huh? It’s going up? Wait — my coworker said he made money? Hm, this trading arena actually looks pretty good — so many stocks surging hard, way better than those savings products I’ve been buying. Let me jump in and buy buy buy!”
What the Leek Sheep don’t know is that they got up early only to arrive late to the market. It’s not that Leek Sheep can’t profit — it’s that the only thing that can feed them is an even bigger wave of sheep arriving later. So ask yourself: is now really the time to open the gates and let the sheep flood in?
The thing is, the sheep aren’t a single individual — they’re a collective of countless people. And collectives have inertia. That’s exactly why when many people were bearish yesterday, yesterday still surged hard. The fundamental logic is simple: they’re underestimating just how slow the Leek Sheep really are — not just in thinking, but in reaction speed.
It takes them at least several days to properly recognize and respond to the seismic changes happening in the outside world.
The typical mental progression of an ordinary person goes like this:
1 — “Are you kidding me, the stock market? That place eats people alive. No way.” 2 — “Huh? Someone I know says he made money. Probably just a fluke.” 3 — “Wait, several coworkers are saying they made money now… Okay, I’ll keep an eye on things.” 4 — “Alright, let me try putting one month’s salary in and see what happens.” 5 — “Hey — I made money? Quite a bit, actually. Guess I’m just lucky.” 6 — “Made money again?! I’m… actually pretty good at this. Maybe I can make a living off it.” 7 — “Three wins in a row. Is this a coincidence? No — once is luck, twice is luck, but three times? That can only mean I have extraordinary natural talent. Compared to Buffett or Soros, sure, I’m a bit behind — but I’m definitely sharper than those so-called ’experts’ in their fancy suits.” 7 — “Hey honey, let’s just sell the apartment. Don’t worry — it’s not selling the house to gamble on stocks, it’s converting the house into shares, then shares into a mansion! What? You don’t believe me? Let me show you my returns.” 8 — I. AM. A. STOCK. GOD. 9 — “Hm, something feels off. Well, wins and losses are part of the game. Totally normal.” 10 — “Let me double down, claw back some losses, then I’m out.” 11 — “Hello, could you unlock the door to the 18th-floor rooftop for me? I just want to enjoy the view.”
At this point, we’re probably sitting around step 2.5. The later stages haven’t shown any clear signs yet. As for a sudden explosive bull run? That doesn’t seem very likely. The rhythm of this whole move feels more like a “slow, steady bull.”
So letting the market deliberately slow down — even cool off — is actually the most beneficial choice right now. It achieves many good things: it allows the Dragon-Tiger Kings to absorb more chips at the bottom, building a more solid floor. And during this gradual process, it gives listed companies, market makers, and various state-affiliated financial institutions enough time to adjust and prepare for the work that will be needed when the eventual “bull peak” and “bear valley” finally arrive.
Without enough transaction volume, how can financial reform be completed?
Take yesterday’s news — announcements to crack down on leveraged lending, combined with plans from two weeks ago to grant licenses to commercial banks, and last week’s move to expand the capacity of officially-approved margin. All of this clearly signals direction.
So if today’s price action feels a little brutal and leaves you feeling dazed — don’t panic too much. The market moving this way isn’t a death-spiral. After the ferocity of the past few days, this is just the market catching its breath and cooling down.
Overall: if the next few days look a bit ugly, that’s actually not a bad thing. It’s like building a skyscraper — the taller the building, the deeper you have to dig, clearing out the mud and leaving room for a solid foundation.
Be patient. And never forget one of Master Chi’s classic principles: when nobody is talking about the trading arena, that’s the best time to enter. Because at that moment, almost nobody is coming in — and that is, in fact, the true trough and the real bottom.
After all, almost anything can be inflated or exaggerated — but gossip and street chatter reflect the genuine temperature of the people. And that never lies.
Speaking of the streets and the world at large — you might want to read Master Chi’s piece from last night: Dao, Principle, Righteousness, Profit: How Do Men and Women of the Jianghu Make Their Mark in the World?
Today’s trading arena is just one tiny corner of the world. The vast arena we actually live and breathe in is the wide-open Jianghu of everyday life. Navigate that world, and there are rules and details specific to it — master them, and you rise.
A Side Note: The activity in the Circle has been heating up again these past two days. What genuinely surprised me is how much deeper and richer the topics and discussions have become.
This matters — because we all know that in this era, thick books certainly have their value. But for investing and personal growth, one line of true wisdom is enough. Especially in a moment like this, when the signs of a great bull are just beginning to emerge.
So I sincerely urge all of you: if you truly want to grow and gain in the trading arena, you must build a complete and coherent knowledge framework for yourself. Don’t fill your life with idle chatter and gossip.
Even if you never join my Circle — that’s fine. But at least follow some genuinely valuable accounts and content, so that every read adds something to your life.
You don’t need to discuss the market with the salary-earning coworkers around you. Instead, spend your time around people who are actually making real money in the world — especially people making the kind of money you never thought possible.
Mix with them. Learn from them. Watch them. Only through that will you grow fast and prosper.