1. 📈 Pump & Dump Schemes
Whales buy a coin early, then promote it through social media or with false volume.
New traders buy out of FOMO (fear of missing out).
Whales dump their coins at the top, leaving retail traders with losses.
⚠️ Trap: Buying late in a sudden spike.
✅ Avoid: Don't chase green candles. Wait for confirmation and volume to stabilize.
2. 🪤 False Breaks (Liquidity Trap Hunting Stops)
Whales push the price above resistance or below support to trigger stops.
This creates false signals, trapping breakout traders.
After triggering stops, the price quickly reverses — and whales buy/sell the true movement.
⚠️ Trap: Buying breakouts without volume or confirmation.
✅ Avoid: Wait for retests and volume support before entering.
3. 📊 Order Book Manipulation (Spoofing)
Whales place large buy/sell orders to create false demand or supply.
New traders react, thinking the price will go up/down.
Whales cancel these orders and move the market in the opposite direction.
⚠️ Trap: Believing in false walls of the order book.
✅ Avoid: Don't rely solely on the order book — use price action and volume.
4. 🧠 Psychological Pressure (Fear & Greed)
Whales provoke emotional reactions by creating:
Sudden drops (fear selling)
Massive green candles (greed/fomo)
New traders react emotionally instead of strategically.
⚠️ Trap: Panic selling or FOMO buying.
✅ Avoid: Have a plan and stick to it. Don't trade based on emotions.
🚫 How to Protect Yourself:
🧠 Always use a stop-loss
📉 Never chase pumps
⏳ Wait for the price to stabilize after a big move
📚 Stay true to your plan and strategy
📝 Learn from each trap — they become easier to identify
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