In the investment market, many participants often attribute losses to bad luck or insufficient skills. However, in reality, most losses often result from market manipulators cleverly exploiting human weaknesses. To survive long-term in this complex environment, it is crucial to understand common market manipulation tactics.
First of all, 'good news accompanied by stock price decline' is a common strategy. When positive news is announced, many investors rush to buy, while market manipulators have already accumulated enough chips and take the opportunity to sell at a high position, causing those who chase the highs to suffer losses.
Secondly, 'false breakout' is also a form of inducement. When the price breaks through a key level, it seems like a signal for an upward trend, but it may actually be a deliberate price increase to attract buyers. Once investors enter the market, manipulators may quickly sell off, leaving behind a long false breakout candlestick.
Moreover, a 'slow and steady decline' is more damaging than a sharp drop. The market is gradually pushed down, and investors are reluctant to cut their losses in anticipation of a rebound, which may ultimately lead to selling at a low point when confidence collapses.
In addition, 'creating FOMO (fear of missing out)' is also a commonly used tactic. Continuously pulling out large bullish candles creates a strong upward atmosphere, enticing investors to chase in at high positions.
Finally, 'wash trading' creates false trading volume, misleading investors into believing that large funds are entering the market, when in fact it is just the illusion of self-buying and self-selling.
To avoid becoming a victim of market manipulation, the key lies in restraining the impulse to chase high prices and giving up unreasonable positions. A wise investment strategy should be to follow market trends, reasonably control positions, and patiently wait for real investment opportunities. Only by deeply understanding market psychology can one succeed in this challenging environment.
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In the investment market, many participants often attribute losses to bad luck or insufficient skills. However, in reality, most losses often result from market manipulators cleverly exploiting human weaknesses. To survive long-term in this complex environment, it is crucial to understand common market manipulation tactics.
First of all, 'good news accompanied by stock price decline' is a common strategy. When positive news is announced, many investors rush to buy, while market manipulators have already accumulated enough chips and take the opportunity to sell at a high position, causing those who chase the highs to suffer losses.
Secondly, 'false breakout' is also a form of inducement. When the price breaks through a key level, it seems like a signal for an upward trend, but it may actually be a deliberate price increase to attract buyers. Once investors enter the market, manipulators may quickly sell off, leaving behind a long false breakout candlestick.
Moreover, a 'slow and steady decline' is more damaging than a sharp drop. The market is gradually pushed down, and investors are reluctant to cut their losses in anticipation of a rebound, which may ultimately lead to selling at a low point when confidence collapses.
In addition, 'creating FOMO (fear of missing out)' is also a commonly used tactic. Continuously pulling out large bullish candles creates a strong upward atmosphere, enticing investors to chase in at high positions.
Finally, 'wash trading' creates false trading volume, misleading investors into believing that large funds are entering the market, when in fact it is just the illusion of self-buying and self-selling.
To avoid becoming a victim of market manipulation, the key lies in restraining the impulse to chase high prices and giving up unreasonable positions. A wise investment strategy should be to follow market trends, reasonably control positions, and patiently wait for real investment opportunities. Only by deeply understanding market psychology can one succeed in this challenging environment.