Core Methods of Stock Manipulation That Friends Who Can't Hold Spot Must Understand
In the cryptocurrency market, manipulators use various means to wash out stocks, causing retail investors to incur losses. Below are common techniques used by manipulators; understanding these can help you avoid falling into traps.
1. Create Panic, Induce Selling
Manipulators create panic through significant price drops, forcing retail investors to sell at a loss. At this time, manipulators buy at low prices and wait for market sentiment to stabilize before pushing the price up.
2. False Breakout, Induce Buying and Then Crash
Manipulators raise the coin price to a critical level to attract retail investors to follow. Then they quickly reverse their operations, crashing the price to trap the retail investors who followed in.
3. Control Information, Create Emotional Fluctuations
Manipulators release negative or positive news to control market sentiment, causing retail investors to panic or blindly chase prices.
4. Precisely Control Trading Volume
Manipulators raise coin prices with stable trading volumes to avoid drawing too much attention, allowing retail investors to follow and buy.
How to Respond to Wash Trading?
Stay calm, do not chase prices or sell at losses.
Set stop-loss and take-profit points to avoid emotional decision-making.
Invest for the long term to reduce frequent trading.
Buy in batches to diversify risks.
Summary: Understanding the methods of stock manipulation, staying calm and rational, and not being swayed by short-term fluctuations are essential for making steady profits in the cryptocurrency market.
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