The trading industry is truly a ruthless place, especially for those whale big shots, who are practically the controllers of the market. Ninety percent of traders end up inexplicably losing their hard-earned money.
But the good news is that once you understand the whales' tricks, you can avoid the pitfalls and even turn a profit from them. This valuable knowledge usually costs thousands outside, but today I’ve decided to give it to you for free. Just give me a like, share it, and bookmark it so that more people won't be deceived.
The whales' manipulation tactics can be summed up in just a few moves:
First, they secretly stock up, buying slowly when prices are low. Then they suddenly raise the price to sell, and when retail investors see the price rise, they follow suit. Next, the whale continues to buy while pushing the price up, attracting more retail investors. Once the price reaches a certain level, the whale starts selling at a high price to retail investors, making a significant profit. After that, they crash the market to sell, and the price drops sharply. When the price falls to a certain level, the whale buys back at a low price, then crashes and sells again, repeating this cycle.
After understanding this, make sure you don't become a cash cow for the whales.
Whales have seven major exploitation techniques that we need to recognize one by one:
False breakthroughs involve buying at resistance and selling at support, specifically to deceive retail investors. You need to be patient and wait for more signals to confirm before taking action.
Stop-loss hunting means pushing prices to trigger retail stop-loss orders, causing chaos in the market. You should set your stop-loss orders slightly higher or lower, so they are not too obvious.
Range manipulation involves pushing prices to the edge, forcing retail investors out, and then reversing. You need to be wary of false breakthroughs and avoid acting before confirmation.
The fair value gap is created by making a gap when prices rise and buying back at a low price when they fall. You need to be patient during pullbacks and avoid blindly chasing after rising prices.
Stop-loss hunting is about breaking support and resistance, triggering retail liquidation, and then reversing. You need to be cautious near key levels and avoid acting impulsively before confirmation.
Fake trading involves controlled accounts trading with each other to inflate value. You need to look at price differences and transaction volumes to find signs of manipulation.
Fake orders deceive by placing a large number of false orders to influence price perception and then canceling them. You should use limit orders and not be fooled by those fake walls.
Remember, outsmarting the whales relies on your wisdom and calmness.
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