#ReboundRally What is the term weak hands?
Weak hands is a term used to describe a trader or investor who lacks the confidence, resources, or ability to hold their positions or stick to their trading plans. However, the term may be used differently depending on the type of market.
In both the forex and cryptocurrency markets, ‘weak hands’ is frequently used in a negative sense, describing the behavior of inexperienced and emotional traders. These traders typically offer predictive trading patterns and strategies, which are frequently exploited by market makers and seasoned traders.
Weak hands is therefore a trader who buys or sells compulsively, driven by emotions rather than logic. They tend to exit positions when the market shows any type of bearish behavior or because of bad news, and often sell their assets at a loss. These individuals do not believe in the long-term growth of their investments and can easily be shaken by trading prices.