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Author Topic: Weak Hands, a reason for market dumps  (Read 1054 times)

Online Bobcrypto

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Weak Hands, a reason for market dumps
« on: December 27, 2024, 04:12:40 AM »
I have diligently taken some times to consider some reasons why we encountered many coin/tokens dumps, in my  opinion, one of the biggest reasons for coin/token dump is due to, ''WEAK HANDS''
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?

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Weak Hands, a reason for market dumps
« on: December 27, 2024, 04:12:40 AM »

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Re: Weak Hands, a reason for market dumps
« Reply #1 on: December 27, 2024, 04:25:49 AM »
I have diligently taken some times to consider some reasons why we encountered many coin/tokens dumps, in my  opinion, one of the biggest reasons for coin/token dump is due to, ''WEAK HANDS''
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?
usually they are novice traders who do not have much experience, so their predictions are often wrong and they are doubtful of the analysis they do...

for those who already know the market movement pattern, it will be easier to control their emotions so that the decisions taken will not be hasty...

Usually, people will take the decision to sell when the market is experiencing a correction... it often happens, and the decision that seems hasty makes them do it, even though if they were a little more patient, they would have made a profit, considering that the market will bounce back.

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Re: Weak Hands, a reason for market dumps
« Reply #1 on: December 27, 2024, 04:25:49 AM »

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Re: Weak Hands, a reason for market dumps
« Reply #2 on: December 27, 2024, 07:13:40 AM »
---
Do you think they contribute more often than other reasons for coin/tokens dumps?
Yes, they are.

Most of the investors are relying on the news and when they see a negative news on the internet, they often make decisions based on that decision alone hence, selling their holdings pushing the prices even further. We just saw it happened when the FED announcement during the 20th of December. I believe though that those who are selling their Bitcoins during a dump are the ones that are in profit and they're holding Bitcoin for a very long time already.

On the flip side, there are weak hands still and these are the newbies that are easily getting panicked. Whatever the case is, weak hands will stay especially in a volatile market like the crypto market.

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Re: Weak Hands, a reason for market dumps
« Reply #3 on: December 27, 2024, 07:50:22 AM »
I have diligently taken some times to consider some reasons why we encountered many coin/tokens dumps, in my  opinion, one of the biggest reasons for coin/token dump is due to, ''WEAK HANDS''
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?
Not totally correct but the ability to hold a trade is what makes you profitable on the long run and don't necessarily contribute to the market dumps.. dumps are cause by major investors removing their investments from the market. When such person sells off, the market experience huge dips and might have to sweep our alot of liquidity for it to regain a bullish momentum.. I don't trade much of crypto but from my experience trading forex, sometimes it's good to close a position at some points..

holding is good, but at some point when the market begins to consolidate or creates some patterns that signifies a lot of changes, it's best to take your profits as the market cannot be fully predictable.. I've been is such situations before when immediately I get the sign that the market is about to change its trend, I close and at that point the market immediately changes trend to the opposite sides... We just need to know when to and when not to close a trade...

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Re: Weak Hands, a reason for market dumps
« Reply #4 on: December 27, 2024, 08:26:12 AM »
I don't totally agree with you. I believe that weak hands can cause the price to fall, but it's not the reason why the market dumps. There are big investors who are selling a large portion of the supply of a coin that will cause the price to fall, weak hands are just selling because they are afraid of losing more. They are not the main reason why the price fall but those big investors, weak hands money is just cents if we compare to those whales, and they can't dump the price by themselves.

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Re: Weak Hands, a reason for market dumps
« Reply #5 on: December 27, 2024, 01:20:57 PM »
vRetail traders or weak hands do not make a change in the market but deepen this change so you find whales before they pump or dump the price they spread rumors, then they lower/increase the price by more than 10% and the panic of weak hands will cause a deep correction.
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Re: Weak Hands, a reason for market dumps
« Reply #6 on: December 27, 2024, 02:05:00 PM »
vRetail traders or weak hands do not make a change in the market but deepen this change so you find whales before they pump or dump the price they spread rumors, then they lower/increase the price by more than 10% and the panic of weak hands will cause a deep correction.
There's always those dumpers and not all dumpers are considered out to be newbies or those new investors out in the market on which even into those veterans or older ones will be doing such act specially if they've seen that the dip or correction is that way too deep on which they have seen that it is really that making a breakout into their position. Cutting off loses isnt really that a bad idea to make on which this is something that will be a common. When you do have that lacking of experience and understanding on how this market works then you do usually be ending up with having this kind of action but if you do have already that understanding then you do really know at least on what you should gonna do.

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Re: Weak Hands, a reason for market dumps
« Reply #6 on: December 27, 2024, 02:05:00 PM »


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Re: Weak Hands, a reason for market dumps
« Reply #7 on: December 27, 2024, 03:38:26 PM »
I have diligently taken some times to consider some reasons why we encountered many coin/tokens dumps, in my  opinion, one of the biggest reasons for coin/token dump is due to, ''WEAK HANDS''
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?

Selling off the market isn't just about weak hands, they contribute to market fall but generally, all traders that are short term traders contribute as well. Some traders hold short positions of their trades and their profit is determine by the current situation of the market, if the market changes and they know it will affect th their positions, they quickly sell and this makes market to dump.

With this, are you going to blame them for protecting their trade? Absolutely no because everyone in crypto market is after the same money, so it's nothing personal but common interest of money among the traders.
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Re: Weak Hands, a reason for market dumps
« Reply #8 on: December 27, 2024, 04:36:56 PM »

If they sell their coins due to I fear that market is draining, it's reasonable enough to sell. We could say they got weak hands but if the price was enough for them to profit and before they lose the profit, they take the opportunity to sell.

They are part of the community who does benefit of the price pump. Because they think holding means losing the ones they already won by doubting whether the bull market is over.

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Re: Weak Hands, a reason for market dumps
« Reply #9 on: December 27, 2024, 06:07:00 PM »
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?

The main reason for this is the market condition that they cannot keep up analysing and trusting, so if there is a little movement of losing their investment, they will eventually sell; they are not comfortable with their investment and they cannot afford to lose.
They want quick profit, and they don't believe that market will eventually recover. I have so many friends like this; it is very easy for them to sell if they see their investment dipping.
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Re: Weak Hands, a reason for market dumps
« Reply #10 on: December 27, 2024, 06:47:16 PM »
I have diligently taken some times to consider some reasons why we encountered many coin/tokens dumps, in my  opinion, one of the biggest reasons for coin/token dump is due to, ''WEAK HANDS''
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?
I think the recent dump was because FED rate cut and some investors taking profit to celebrate the holiday and not because of weak hands. Traders cannot influence the price of bitcoin but big Whales. However, every market period is a blessing to investors because now that the market is bleeding, you can buy more Bitcoin at a cheaper rate.

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Re: Weak Hands, a reason for market dumps
« Reply #11 on: December 27, 2024, 10:24:55 PM »
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?

They also contribute to token dumps and that’s because their emotional knowledge is not satisfactorily and they need to work on that before they jump into trading or investing. The market dump of many coins happened more as a result of investors not having trust in the project and their fear of losing all of their investments persuades them to take action and liquidate their holdings in such projects thereby dumping the value of the token more. Other factors are there that plays vital role to token dump but this is also another factor that can highly be considered too.

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Re: Weak Hands, a reason for market dumps
« Reply #12 on: December 27, 2024, 10:57:12 PM »
I have diligently taken some times to consider some reasons why we encountered many coin/tokens dumps, in my  opinion, one of the biggest reasons for coin/token dump is due to, ''WEAK HANDS''
Now, ''Weak Hands'', is term used to describe a Trader or an Investor that lack the confidence, resources, or the ability to hold their positions or stick to their trading plans. It also describes the behavior of inexperienced and emotional traders. Do you think they contribute more often than other reasons for coin/tokens dumps?
Weak hand what ever we say it , newbie trader, emotional trader or anything else they where also the part of trading market. When a emotional trader make mistakes on the opposite side other professional trader make profit and this is how running this market.
And here yes there also a big reason for dump that those weak that they were influenced by FUD and in that large scale it makes the market dump.

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Re: Weak Hands, a reason for market dumps
« Reply #13 on: December 27, 2024, 11:18:48 PM »
They are weak minds and heart instead of weak hands, these are those who easily getting lured, change of minds, emote for a little or huge movement of the market which mostly have newbie moves are usually cause of FUDs, and FOMO. It can't be helped though since its a free market and anyone can trade instead of just few others who are known as broker in stock markets.
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Re: Weak Hands, a reason for market dumps
« Reply #14 on: December 27, 2024, 11:34:21 PM »
This makes sense and is usually the case, especially if:
- weak hands
- Poor emotional management and control
- Easily panic
- Easily affected by FOMO
- No basic knowledge of crypto

if this exists, yes this will be a super combo of things that will probably fail more easily. and this may often happen to most beginners who don't want to learn from the beginning and just want to get rich quick.

 

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