Hello again, our dear friend 💛
Here's an explanation of some of the rules of play from the whales of the financial markets:
1. Accumulation and Distribution
Accumulation: Purchasing large amounts of assets gradually without significantly raising prices. Whales do this to avoid attracting the market's attention.
- Distribution: Selling assets gradually after prices rise to make a profit, again without significant impact on the market.
2. Price Manipulation
- Pump: Buying in large quantities to push prices up. This may be followed by spreading rumors or positive news to attract more small investors.
Dump: Selling in large quantities after prices rise to make a profit, leading to a sharp drop in prices.
3. Large and Hidden Orders
- Large Orders: Place large buy or sell orders to influence market sentiment and price direction.
- Hidden Orders: Using techniques such as “Iceberg Orders” where the true size of the order is hidden, making it difficult for others to fully understand the whale’s intent.
4. Taking advantage of time differences
- Exploiting time differences: Taking advantage of the different opening and closing times of different financial markets to make a profit from the price discrepancies between them.
5. Contrarian Trading
- Reverse trading: entering into trades that are opposite to the current market trend. For example, buy when everyone is selling, and sell when everyone is buying. This is based on the belief that crowds are often wrong in their predictions.
6. Information Impact
- Obtain advance information: Benefit from obtaining insider information or analyzing market information faster and more accurately than small investors.
- Disseminating influential information: publishing news or rumors to achieve the desired impact on the market.
7..Short Squeeze
- Short squeeze: forcing short selling traders to buy assets to cover their positions, leading to sudden price increases.
💡How are small traders affected by these rules?
1. Price Volatility: Whale movements can cause significant price fluctuations, making the market difficult to predict.
2. Unexpected losses: Whales can trigger rapid changes in trend, which may lead to losses for small traders who do not anticipate these moves.
3. Liquidity Impact: Whales may significantly decrease or increase market liquidity, affecting order execution and prices.
💡 How to play with whales
1. Learning and Analysis: Understanding whale strategies and trying to predict their movements.
2. Risk management: Use stop-loss orders and trade with money you can afford to lose.
3. Portfolio diversification: Distributing investments across multiple assets to reduce vulnerability to a single market movement.
4. Market Monitoring: Monitoring news and economic events that may affect the market.
5. Patience and discipline: Do not be led by rumors and be patient and disciplined in making decisions.
and #خلك_فطن ⚡
