Core Viewpoint - The article discusses the dynamics of market participation during bull markets, highlighting that inexperienced retail investors often end up as the "greater fools" who buy into overvalued stocks, while seasoned investors tend to manage their risks more effectively [1][2][3]. Group 1: Market Dynamics - During bull markets, there is a significant disparity in profitability among different investor categories, with larger funds generally achieving higher returns [2]. - Small investors (0-500,000 yuan) make up 85% of the market but average a loss of 32%, while large investors (over 10 million yuan) represent only 0.5% and average a return of 33% [2]. - The last buyers in a bull market are often those who are least informed and most financially constrained, leading to a situation where they are left holding the bag when the market corrects [2]. Group 2: Investor Behavior - New retail investors, often referred to as "little white investors," tend to enter the market during euphoric periods, which is a risky strategy [4][7]. - Many retail investors lack the discipline to exit positions during downturns, leading them to become "value investors" after experiencing significant losses [7][8]. - The article emphasizes the importance of not relying solely on bull markets for investment success, suggesting that investors should develop strategies to profit in various market conditions [8][9]. Group 3: Institutional Influence - Institutions often leverage retail investor capital to boost their own performance, creating a cycle where retail investors buy into high-flying stocks that institutions are offloading [10][11]. - The article notes that retail investors are more likely to invest in index funds that include high-profile stocks, which can lead to inflated valuations [10].