The strong and weak hands of the market!

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One of the things we should take into account is that markets are manipulated, there are those who say that in a small, medium or total way, the question is that in one way or another many times the trend or action of the Prices You can change abruptly and make for example a small trader I buy according to a bullish signal I finish buying an asset that is going down, very probably this ending at a lower price with respect to the price I buy Losing money so money.

From this point of view we can say that in the market there are mainly two actors with a mentality and mode of operating different.

Strong hands: that are nothing more than all investors with a lot of capital and that dominate the market in a greater manner, usually composed of companies, banks or simply some organized entity with a lot of capital, so much that you can not buy or sell assets Quickly without rising or lowering the prices violently.

First the professional accumulates the assets by placing purchase orders gradually and progressively each time the price is at a low level, thus acquiring the assets at a lower price. Then once he had acquired the totality of the expected he begins to press the market by buying assets in a violent way and injecting money until the offer disappears and makes an uptrend begins.

Once the price is at a high level, the professional begins to sell its positions gradually, in the same way that in the accumulation phase, at this moment it begins to sell until all its positions liquidates and gets the gain. Sure, once this has been completed, the market has already passed through an euphoria phase where many acquired assets at a very high price, clearly, at some point the demand begins to be exhausted, in doing so and start the bearish pressure begins the new cycle and the new trend.

Weak hands: In this group we can observe most market retailers, retail investors and merchants of all kinds, most who lose money in a market, the so-called flock, this one is one who the strong hand takes advantage of the buy your positions at a very low price when the same weak hand starts selling thinking that the price is going to fall forever, the strong hand is also the one who sells its positions to the weak hand at exorbitant prices taking advantage of that the latter has the idea that the price is going to rise again.

Many people believe that the news that are sold and promoted in all kinds of forums such as Reddit or Twitter are by most certain, who are guided as by professionals who have years in the business and generate exorbitated profit amounts.

The reality is that most of these tips or news are taken by many people and in many cases repeated, the media tend to distribute the information in a very fast way so that everyone is entirely, but too slow for Someone can really take advantage of it. By the time a news gives a bullish market that should be taken advantage of, it is most likely that said market is in an end.

Then there is the most important question, if something is very viral it is also very likely that strong hands are aware of it and try to push the market contrary to liquidate the positions of small traders and stay with their money. Always following the same principle of buying cheap or selling expensive.

That is why following the herd is always the worst idea, all these behaviors are driven by emotion and if you are reading the whole class you can understand on your own the illogical that this is. Now join your imagination that the market although follows certain patterns can always go to one direction or another in a violent way and then continue its natural course. You can observe this very commonly in highly volatile markets, such as those of cryptomones, where there are always candles with very long wicks that indicate a point in which liquidity is injected to push it aside, liquidate many positions, leave trapped retailers and Then continue your course.

The best we can do is try to think about the professional, playing their game and placed positions in which we can operate based on their movements and constant attempts to manipulate the market. If the professional practically does not make a mistake, trying to operate as we should not do it, follow the principle of buying cheap and selling expensive is the basics for this, it also avoids being controlled by emotions or news.

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