How do whales trade and why do they rarely lose?
Whales win thanks to strategy, capital, and influence on the market.
Here are some of their secrets:
1. Huge capital and a long-term approach
* Resource reserves: Whales can endure prolonged downturns while small traders exit the market at a loss.
* Long-term goals: They do not chase quick profits but accumulate assets at lows and wait for growth.
2. Market manipulation
Crowd psychology:
* Create artificial price movements: pumps and dumps, to induce panic or greed among small traders.
For example, they massively sell to "shake out" weak hands and then buy assets at low prices.
Fake orders: Place large orders in the order book to create the illusion of demand or supply.
3. Analytics and insider information - THE MOST IMPORTANT
Access to insider data:
Whales are often connected to the industry and learn about news or major events first.
Analytical tools:
They use advanced algorithms, big data, and machine learning models for forecasts.
THEY OWN INFORMATION FIRST