Avoid selling at a loss: don't give your money to whales
In the world of investing, especially in stocks and cryptocurrencies, there is one piece of advice that stands out: "Don't sell at a loss." However, many investors, particularly novices, fall victim to emotional decisions and ultimately sell prematurely. Understanding market dynamics and the role of major players, such as "whales," is crucial to avoiding these traps.
Who are the whales?
"Whales" are large investors or institutions with significant influence on the market. Their extensive assets allow them to manipulate price movements to their advantage, often at the expense of smaller investors.
How do losses occur?
1. Fear and panic: Sudden price drops, often triggered by whale sell-offs, cause small investors to panic and sell, fearing further losses.
2. Psychological manipulation: Whales use strategies to create the illusion of an impending market crash, allowing them to buy assets at undervalued prices.
3. Emotional reactions: Successful investing requires patience and discipline, but fear often leads to hasty decisions and regrets.
