Don’t Leave Your Money to Whales: Stop Selling at a Loss
In the world of investing, especially in the stock and crypto markets, there is a lesson that is always repeated: “Don’t sell at a loss.” But despite the simplicity of this phrase, many investors, especially new ones, fall into the trap of selling at a loss under the pressure of emotions and fears. If you are one of them, you need to understand the mechanism of the market and how large forces, such as whales, play a major role in draining the money of individual investors.
Who are whales?
“Whales” is a term that refers to large investors or institutions who own huge stakes in the markets. They are characterized by the ability to greatly influence price movements. These whales use well-thought-out strategies to direct the markets where they want them to go, often at the expense of small investors.
How do losses occur?
1. Fear and panic: When prices suddenly fall due to massive sell-offs by whales, individual investors panic and start selling to avoid even greater losses.
2. Psychological influence: Whales use tactics that make the market appear as if it is about to collapse. The goal? Buy your assets at a price lower than they are worth.
3. Emotional Behavior: Investing requires patience and strategy. But when fear takes over, people make rash and ill-considered decisions.
Why You Shouldn’t Sell at a Loss?
1. Volatility is Natural: Markets always go up and down.