In the cryptocurrency world, news always seems to stir up a storm. A piece of news or a rumor can cause drastic fluctuations in Bitcoin and other cryptocurrencies. However, as a contrarian investor, I know that there are bankers behind all this, who realize their own interests by manipulating the market and driving market sentiment. This article will deeply analyze the market manipulation behavior of bankers and reveal how they manipulate the market through news.
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# News control strategy
1. Create panic and excitement:
- Panic: Market makers will choose to spread negative news when market sentiment is fragile, such as tightened government regulation, hacker attacks, etc. These news will cause retail investors to panic sell, Bitcoin prices will fall rapidly, and market makers will buy a large amount of money at low prices.
- Excitement: On the contrary, when market sentiment is high, market makers will release positive news through the media, such as the government's stockpiling of strategic assets, technological breakthroughs, etc. This will trigger the FOMO psychology (fear of missing out) of retail investors, and they will rush to buy, pushing prices up, and market makers will sell at high prices to make a profit.
2. Take advantage of the news:
- Pre-positioning: Market makers usually position themselves in advance and complete a large number of buying or selling operations before the news is released. Once the news is released and market volatility intensifies, they use the reactions of retail investors to complete transactions.
- Follow the trend: After the announcement of major news, the market makers will follow the trend according to the immediate reaction of the market. For example, when the price rises rapidly, they will continue to push up the price to attract more retail investors to follow up, and then gradually reduce their positions.
3. Combination of news and technology:
- Technical analysis misleading: Market makers will use technical analysis tools to create a false impression of technical bullishness or bearishness through technical indicators such as K-line patterns and trading volume to attract technical investors to enter the market. For example, market makers release good news near an important support level to create the illusion of a breakthrough rise, but in fact, they may be ready to ship at a high level.
## Analysis of the banker’s trading behavior
1. Big money manipulation:
- Large buy and sell orders: The market makers have a lot of money and can control the short-term direction of the market through large buy and sell orders. When they buy on a large scale, the price rises rapidly, and vice versa.
- Wash operation: Through frequent short-term trading, the market maker can raise or suppress the price in a short period of time, forcing retail investors to sell their chips, thereby completing the wash operation.
2. Information asymmetry:
- Inside information: Bankers usually have inside information about the market and can predict market trends in advance. This information asymmetry gives them a huge advantage in market operations.
- Media manipulation: Market makers often manipulate the media to release news that is favorable to them, thereby influencing market sentiment. For example, they can use well-known analysts or industry leaders to release market forecasts to influence investors' decisions.
3. Psychological tactics:
- Taking advantage of greed and fear: Market makers are well aware of the weaknesses of human nature and stimulate investors’ greed and fear by creating market fluctuations. Greed makes investors chase high prices, while fear leads to selling at low prices.
- Induced trading: Market makers will use various means to induce retail investors to trade frequently. While earning transaction fees, they also make the market more unpredictable.
## Contrarian Investor Strategies
As a contrarian investor, if you want to stay awake and profit from the market makers’ trading behavior, you can adopt the following strategies:
1. Stay calm: In the face of market fluctuations, do not blindly follow the trend. No matter how tempting the news is, you must calmly analyze its authenticity and the purpose behind it.
2. Observe the trading volume: judge the market sentiment and the market maker's movements through the changes in trading volume. When the trading volume is abnormally enlarged or reduced, it is often a signal of the market maker's operation.
3. Build positions in batches: Avoid one-time heavy positions. Building positions in batches can effectively reduce risks. When the market fluctuates greatly, gradually increase or reduce positions to cope with market uncertainties.
4. Set a stop loss: A clear stop loss should be set for each transaction to prevent huge losses caused by drastic market fluctuations. The stop loss setting should be adjusted according to personal risk tolerance and market conditions.
Pay attention to contrarian investors, stay calm, see through the methods of the market makers, and remain invincible in the market.
