Forwarding Mr. Qiao's: Documentary Episode Seven

I had an argument with him at noon. I asked him why he wanted me to open a position at this level. Isn't it dropping? If I open a position at this level, am I going against the trend? Won't I lose money? Then he asked me if I understood what a technical pullback is! So I asked him what a technical pullback is and what aspects it refers to!
He told me:
The overall trend is upward now, and a 3% correction is also very necessary. The reason is as follows.
The first callback allows long positions that were bought at very low points to take profits by withdrawing, so they can take profit in a timely manner. This callback enables them to take profit with the minimum profit on their long positions.
Second, it can cause those who recently chased long positions to panic, thinking they made a wrong direction. They are afraid of being trapped in their long positions, so they let themselves take losses.
Thirdly, attract more people to short, making them think that this is the peak and that they can short now. This is also the main profit.
Fourth, it allows those who are already trapped in short positions to add to their positions, as they feel there is hope, and adding to their positions might help them break even; however, this will accelerate their liquidation.
I don't really understand what he said either. Anyway, I have already lost 1000 RMB listening to him. If it falls further and I lose more money, I will go find him to settle the score and make him pay me back.