In the world of trading, it is not only technical or fundamental analysis that rules the markets, but there is another more dangerous and influential element: psychological warfare!
Markets are subject to systematic misinformation campaigns aimed at pushing traders to make irrational decisions, whether out of fear or greed. Have you noticed how negative news suddenly leaks, prices collapse, and then rebound suddenly? Or how “unmissable opportunities” are promoted just before currencies collapse after the crowds enter?
How does psychological warfare work on traders?
News manipulation: Spreading rumors of huge crashes or rises, which prompts traders to buy or sell emotionally.
Stop Hunting: Moving markets to clear stop loss orders for small traders.
Creating panic or over-excitement: By pumping out dramatic news that leads to irrational decisions.
Liquidity manipulation: Manipulating prices to attract liquidity from individual traders in favor of larger players.
Who benefits?
Whales and market makers who profit from the losses of small traders.
Platforms and exchanges that benefit from the increased trading volume resulting from the chaos.
The media and paid analysts who direct public opinion according to certain agendas.
The purpose of this war?
Forcing small traders to make mistakes, so that the money stays in the hands of the big ones!