Common emotional situations of being exploited, and there are many. The following three are the most common
1. Fluctuations within the market.
When a coin experiences fluctuations within the market, it is essentially the main force taking advantage of retail investors. During the ups and downs, if retail investors buy in large amounts, then the price will likely end with a significant drop. If retail investors panic and sell, then after the fluctuations, the price will likely rise instead of fall.
2. Chasing highs and cutting losses.
Chasing highs and cutting losses is also a very common emotion. Behind chasing highs and cutting losses is the fear of missing out and the fear of being deeply trapped.
The emotion of chasing highs and cutting losses is also easily manipulated by the main force; when many people chase highs, it is often easy for the main force to offload. In the morning, they may entice buying significantly, and in the afternoon, they can crash the price to show retail investors, causing a loss of over 10% for those following the trend. The same goes for cutting losses; the main force takes the opportunity to wash out retail investors, causing panic to exit. The price should not be chased, but rather the trend, and retail investors' lack of understanding turns them into fodder for capital.
3. Negative and positive news.
Another point is that both negative and positive news can be manipulated by the main force. Negative news can suppress the price, but it can also be interpreted as the worst being over, leading to a significant price increase. Similarly, positive news can boost prices or be used to raise prices for offloading.
Therefore, how to interpret positive and negative news is ultimately determined by capital. And how capital operates is actually based on market reactions and retail investors' actions. When retail investors panic, capital greedily buys; when retail investors are greedy, capital immediately exits. Exploiting emotions to harvest retail investors is something capital does exceptionally well, almost effortlessly.
Still, as the saying goes, bulls have their strategies, and bears have their methods.
They do not lead fans to liquidation, nor do they blindly open positions.
All are about seeking victory steadily, with a solid approach. Those who want to profit, keep up!
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