Big market players and whales will never buy your coins at inflated prices and give free money to ordinary people. Instead, they use strategies that increase their profits and harm ordinary investors. Their game plan is as follows:
1. Selling at the top: When the price of a coin reaches a peak, whales and large investors start selling their assets. This often leads to huge price drops, causing panic in the market.
2. Panic selling by retail investors: When the market falls, many small investors panic and sell their coins at a loss, causing the price to fall even further.
3. Mini Rebounds for Trap Traders: After the initial drop, there may be a small recovery in the market, but then the price drops again. This is what we call a "mini crash", designed to extract more money from unsuspecting traders.
4. Bottom-up accumulation: When prices hit a low, whales silently buy large amounts of coins and start again at cheaper prices, thus restarting the cycle.
How do you protect yourself from this strategy? It’s impossible to stop whaling as much as possible, but you can protect your investment by using a few smart strategies:
1. Secure quick profit: Never hold coins for unrealistic profit. When you see a reasonable profit, secure it. A small gain is better than a big loss.
2. Set Stop Loss: Always set a stop-loss level to minimize potential losses. For example, if your coin drops 3-4% from the purchase price, convert it to stablecoin immediately. To limit the damage, act quickly without waiting for a recovery.
3. Make a plan: Determine your profit and loss targets before entering the trade. Be strategic and make decisions based on a plan, not on impulse.
By following these rules, you won’t be able to avoid risk completely, but you will be able to respond to small, regular gains while minimizing the risk of large losses. Trading isn’t about expecting surprises; it’s about disciplined decision-making.
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