✍ How to Avoid Being Whale Bait is the first shield for any trader. Whales in the trading world are the owners of massive wallets who move the market through hidden or sudden methods. To avoid being their victim, here are the key tips:
1. Don't Enter on the Noise (FOMO):
When you see the price of a coin suddenly rising and everyone is talking about it, be cautious. Whales often create this noise to sell their holdings when small investors rush to buy.
2. Watch Volume Before Price:
Whales buy and sell in huge quantities. Learn to monitor trading volume, as it may reveal that the movement is artificial.
3. Don't Put All Your Capital in One Trade:
Diversification and caution prevent you from sinking in case of a sudden reversal caused by a whale.
4. Use Stop Loss Orders:
Don't leave your position open without protection. Even if the whale drives the price down, it will automatically exit you before the disaster.
5. Ignore "Rumors" and "Exaggerated Analyses":
Whales may employ media channels or influencers to create a false trend in the market.
6. Learn to Read Between the Candles:
Rapid long movements followed by strong fluctuations or retracements may be signs of manipulation.
7. Don't Try to Imitate Whales:
What works for them may ruin you, as they can withstand huge fluctuations. You need a strategy that fits your capital and psychology.