Rodrigo Tos
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Read carefully! I WILL GIVE A SHORT CLASS! About MANIPULATION in ANY financial market.
Manipulation occurs in many ways, mainly through misinformation, manipulation of buy and sell orders, and strategies that influence the psychology of investors.
Large players, such as billionaire fund managers, investment banks and even financial influencers, use sophisticated tactics to manipulate the price of assets in their favor.
Influencers and Social Networks: Some market figures share biased information on Twitter, YouTube or Telegram, creating panic among less experienced investors.
Leaking of Fake News: Large funds can spread rumors of bankruptcy, government investigations or other bad news before a sharp drop in price.
🔎 Real example: In 2021, Elon Musk tweeted environmental concerns about Bitcoin, leading to a significant drop in price. Weeks later, Tesla bought more Bitcoin at lower prices.
Dumping (Position Dumping to Generate Panic) Large players use market movements to generate panic and a price drop:
Mass Sell Orders: A large fund or investor dumps thousands of units of an asset into the market, causing a sharp drop in the price. This has a psychological effect on smaller investors, who panic and sell their positions, further increasing the drop.
Spoofing (Fake Orders): Some traders place fake sell orders in large volumes, just to scare other investors. As soon as the price starts to fall, these orders are canceled and the manipulators buy at lower prices.
📉 Real example: Large whales in the crypto market often dump Bitcoin or other coins at strategic times, taking advantage of low liquidity to amplify the impact.
Short and Coordinated AttacksAnother common strategy is to open short positions and, at the same time, promote negative information to accelerate the drop
Manipulation occurs in many ways, mainly through misinformation, manipulation of buy and sell orders, and strategies that influence the psychology of investors.
Large players, such as billionaire fund managers, investment banks and even financial influencers, use sophisticated tactics to manipulate the price of assets in their favor.
Influencers and Social Networks: Some market figures share biased information on Twitter, YouTube or Telegram, creating panic among less experienced investors.
Leaking of Fake News: Large funds can spread rumors of bankruptcy, government investigations or other bad news before a sharp drop in price.
🔎 Real example: In 2021, Elon Musk tweeted environmental concerns about Bitcoin, leading to a significant drop in price. Weeks later, Tesla bought more Bitcoin at lower prices.
Dumping (Position Dumping to Generate Panic) Large players use market movements to generate panic and a price drop:
Mass Sell Orders: A large fund or investor dumps thousands of units of an asset into the market, causing a sharp drop in the price. This has a psychological effect on smaller investors, who panic and sell their positions, further increasing the drop.
Spoofing (Fake Orders): Some traders place fake sell orders in large volumes, just to scare other investors. As soon as the price starts to fall, these orders are canceled and the manipulators buy at lower prices.
📉 Real example: Large whales in the crypto market often dump Bitcoin or other coins at strategic times, taking advantage of low liquidity to amplify the impact.
Short and Coordinated AttacksAnother common strategy is to open short positions and, at the same time, promote negative information to accelerate the drop
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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