Narrative Dynamics Handout 2 "Narrative" is how to understand something. "Motivation" is to imagine how the market participants who have the funds will understand something, that is, imagine the order in which the funds will enter the pool. The increase in prices stems from the market's expectation of higher prices. Every buyer thinks that more buyers will come in to drive up the price; And when all potential buyers at the current price level have already bought – that is, the market as a whole feels extremely optimistic – the price will fall due to the loss of buying. Quantitative signals will self-fulfill, propagation of key communicators will self-fulfill, and buy signals of well-known addresses will self-fulfill. When liquidity is abundant, the purchase of the "head" address and the shouting of KOLs will attract a large number of buyers who are not familiar with the transaction. In times of lack of liquidity, buying at the "head" address and shouting orders from KOLs means that the narrative has reached its final stage, as most of the buying volume on the floor is pro traders – or more simply, most of them are "front-run". Choosing PvP means making money from other professional traders. Choosing narrative dynamics means that you are making money from amateur traders. When there aren't enough amateur traders, it's called PvP. You cut me, I cut you, KOLs cut fans, and car heads cut retail investors. Solution: Look for the narrative and trading areas dominated by amateur traders: 1. Time: The increase in macro liquidity itself will allow more amateur traders to enter the market. It's clear that we're at a bad time. 2. Spatially: U.S. retail investors now have a lot of money. We can see this by the time of active trading and the theme. Afternoons in the East and West of the United States are more likely to feature large-cap memes that revolve around the spiritual and cultural needs of whites and blacks in the United States: $HOUSE $MOTION and Tiktok meta. The Chinese-speaking region may have been depleted of retail funds by BNB memes and will take time to recover. So we see: the Chinese "car leaders" are busy losing money, KOLs are blaming each other, and the P players are young and vigorous, thinking that they can win faster than everyone else. What I hope to predict is a market that is more suitable for the majority of people. Most of them, like me, are somewhere between professional and amateur. Then, we have to choose the right time and the right field to make a move. And most people are ignorant. Pursuing the law of the jungle, most people become "weak" rather than "strong". Interestingly, the weak worship the strong more without reflecting on whether they should be within this power structure. May one day the Red Sea carve out a path for us. Sigma Hunter