98% vs 2%

Disclaimer: this post is dedicated to those who are struggling to understand the current market conditions.

I am fairly new to crypto market (less than a year); but not in investment. I have worked more than a decade as an investment banker and would like to share my thoughts about current market conditions.

We all belongs to that 98%, where we are feeding our wealth (at least being forced to feed) to those who belong to 2%. In crypto I found they have been called “Whales”; in parallel world they are often denoted as “Makers”.

I often found so many technical analysis and indicators. Please don’t get me wrong, I am not against TA; but you can only use TA when you have enough liquidity for averaging, when the signals not going along with your predictions.

In simple words, TA is not for small investors who are trying to make some money from their hard earned investments.

The harsh truth is that, the pattern/candle-sticks/indicators; whatever you name it, whatever you see, those are made for you to be seen. I have worked with those and I have very closely how those charts were made to create traps.

When market is in bullish condition, whatever coin/token you buy, you will make profits, more or less. But when it’s bearish, you have to wait for the momentum.

My advice to the small holders investors, please, please and PLEASE, do not use margin when the market is bearish; you will loose your money. It’s like a falling knife, whichever position you would like to grab it, you will cut yourself.

Wait with patience. Whales/Makers will again take the position and create momentum. No TA Will help until the momentum has been shifted.

At last, let me share one well known truth; when we see the BIG GREEN CANDLE stick with a huge volume, we all think now the whales started to interest. Wrong, they are investing now, slowly, while we are bleeding. And when we see that BIG stick, from that time they have started feeding their assets to us, and that’s the point we should get cautious.