He was reducing his holdings while simultaneously buying more, careful not to let the price fall too quickly.
When the price rose, he would reduce his holdings; when it dropped, he would buy more. The T+1 settlement rule wasn't a problem for him, as he could operate on a T+0 basis every day. Whatever he bought at a low price, as long as the market went up, he could immediately sell it at a higher price to profit from the spread.
If the stock fell below 38 yuan, he would buy in to push the price back up before selling again. Once it reached 39 yuan, he could sell off a portion. How much he sold depended on how many buyers were in the market.
In the stock market, those with a large number of shares and substantial capital always held the advantage. Retail investors, on the other hand, were just there to be fleeced. It was difficult for them to make money; they might earn a little occasionally, but they often lost big.
