What are the main concerns of major traders? How can we defeat them?
In the cryptocurrency market, major traders control most of the market fluctuations. They create volatility through their financial advantages and information asymmetry, causing price increases and crashes, all with the aim of profiting from the panic of retail investors. So, what do major traders fear the most, and how can we overcome them?
1. They fear 'Retail Investor Unity'
Traders manipulate retail investor psychology by creating market emotional fluctuations, but when retail investors analyze calmly and operate rationally, the traders' plans can easily be disrupted. If everyone avoids following the trend and maintains independent thinking, traders will lose the opportunity to control.
2. They fear 'Transparency and Information'
Traders have the upper hand in market information, but if retail investors can do their homework on technical analysis and fundamentals, quickly obtain the real information about projects, they can predict traders' movements in advance. For example, paying attention to project teams, technical updates, and market trends.
3. They fear 'Capital Following'
Traders rely on capital to drive their operations, and if retail investor capital can concentrate and collectively act in the opposite direction, traders will face enormous pressure. For instance, when the price of a cryptocurrency rises, if a large amount of capital flows into short positions, it becomes difficult for traders to maintain the price.
How to defeat traders?
1. Stay Calm
Do not be swayed by short-term fluctuations. Traders are good at exploiting the panic psychology of retail investors to profit; only by staying calm can one avoid being 'harvested'.
2. Learn Technical Analysis
Master technical indicators and chart analysis to judge market trends, rather than solely relying on news and emotions. Use support and resistance levels to reasonably predict market direction.
3. Do Not Chase Prices or Sell in Panic
Do not let traders lead you by the nose. Learn to buy low and sell high, and avoid casually chasing prices or panic selling to prevent becoming a trader's victim.
Defeating traders is not easy, but as long as you operate rationally and have sufficient information and skills, traders' strategies will not easily succeed!