Today, a fan asked me an interesting question: What do major players fear the most? To put it simply, big players are best at exploiting retail investors' fears, greed, and luck. This is an inherent trait of human beings, it exists inevitably and drives the entire cryptocurrency market.
In fact, the relationship between major players and retail investors is a natural adversarial one. Big players spread false news (good news) or create false breakthroughs on technical fronts to lure investors in and out, washing away retail investors' money. Many times, this is not an illusion of retail investors, but a reality.
The reason big players dare to do this is that we humans have a herd mentality; they know this pattern, so they seize our emotions and exploit our human weaknesses to make money.
So, thinking from a different perspective, we can also think like them, following the trend to earn their money. This is a psychological game, requiring strong empathy and the ability to control our human weaknesses. Today I will talk about what big players fear, analyzing their weaknesses from a technical perspective, so you can reverse leverage that to make money.
1️⃣ Big players fear retail investors seeing through their operational tactics and not falling for their tricks at all.
The most common tactics used by big players are 'washing the market' and 'raising prices.'
Washing the market usually happens at the bottom, where big players create a quick short-term decline, generating panic to scare away unstable retail investors. When prices rise, it happens quickly, not giving retail investors a chance to enter, leaving the indecisive retail investors to buy at high positions.
If we can see through these tactics of big players, maintain our composure in times of panic at low positions, stay rational when big players are washing the market, avoid cutting losses at low positions, and also refrain from blindly chasing prices when they are rising, keeping a fixed trading rhythm and only taking a bit of 'fish flesh' from their favorable winds, then we won't get trapped at high positions, and big players will have no way to deal with us retail investors.
2️⃣ Big players also fear that we retail investors have strict trading discipline and strong execution.
Big players love retail investors who chase highs and sell lows, especially those who have no strategy and just follow the market to let themselves go. Because the weaknesses in human nature will cause these retail investors' money to flow into the pockets of big players.
So in this chaotic trading market, if you have your own rules and your own trading discipline, then you are a dragon among men because you won’t go with the flow or blindly follow the crowd to chase highs and sell lows. You are rational; you have a brain, which is what gives big players the most headaches.
For example, when big players push the market down to create new lows and wash the market, we stop-loss and exit. After that, the market quickly rebounds, forming a false breakthrough. If we have well-defined rules, we can decisively re-enter after the false breakthrough and still seize the profits from the price rise. This will drive big players crazy.
Also, when buying at high positions, if you have a complete trading rule and strict stop-loss standards, once you are trapped, decisively leave the market in a timely manner, you will only incur a small loss, preserve your principal, and find opportunities to continue trading next time. Such rational people are also a headache for big players.
Because if everyone is so clear-headed and rational, who would big players harvest?
The most important thing in trading is to have strict stop-loss and take-profit standards. As long as you can overcome your fears and greed, stop-loss when wrong, and take profit when right, then there is nothing in the market that can trap you; it’s just a matter of making more or less money.
Of course, sometimes we still accidentally fall for it, but as long as the rules for stop-loss and take-profit are clear, our losses after falling for it are limited, and we won't end up with no bullets left. This is something that big players also fear.
Big players love to see us lose, want us to lose everything, so they can empty all our money. They don't feel any pity; they think we're fools, so don't fall into the emotional traps they create.
3️⃣ Big players fear traders who do not blindly follow the trend.
A classic tactic of big players is to spread so-called 'insider news', which is very appealing to traders who like to take shortcuts or have already suffered significant losses and want to recover quickly.
Once such insider information is released, many people will rush in, spending a fortune to buy fake news, while suffering huge losses themselves. In fact, if we think carefully, the news we can see in the market has already changed hands countless times.
Even if they have very accurate information, there is no need to share it with everyone, because the less people know, the more valuable the information is. They can quietly make a fortune; why share it unless it's to cut leeks?
So the big players take advantage of our retail investors' psychology of wanting to make money easily, guiding market sentiment through insider information and public opinion, and harvesting us retail investors.
In fact, to put it simply, big players are best at exploiting retail investors' fears, greed, and luck. This is an inherent trait of human beings, it exists inevitably and drives the entire cryptocurrency market.
Big players use larger funds, more information, and resources to harvest us by exploiting retail investors' human weaknesses. If we continue to indulge our human nature and trade without any thinking, we will inevitably become the fish on the chopping block.
The only way is to see through human nature, think rationally, and form your own trading rules so as not to be harvested, and even to catch a wave of favorable winds to make some money.