Nova tried explaining, something many traders need to hear. Something many don't know with a core understanding of trading.
When larger accounts promote micro caps (<1m), they might seem like trading legends. But in reality, they are the scum of the earth and can't lose.
You, however, are the ones giving it to them without even realizing it. "Maybe I was too late? Maybe I didn't do it correctly." Trust me, everyone was too late. When a large account makes a call at the $100k market cap and shows the easy x3-5 he made, only he made it.
In trading and investing, no single dollar is created; the money has to come from somewhere and is only moved from person A to person B.
This is essentially how the entire market works, but with a microcap, the playing field is 90% in favor of the "influencer" and 10% in the hands of the followers.
There is no "we will both make it." There's only "I will make it.".
Many will call the large account a legend for calling an x5 in a day.
The screenshot of the $100k post and a follow-up post of $500k look legit, right? That screenshot only represents the situation for him, however.
"Nice call! You are a legend! When is the next gem!?"
These are statements by people who didn't join the call but were lured in by the promises of the easy x3-5 screenshots that were made. They don't know any better yet.
When others follow the "influencers" call at $100,000, they are pumping the price.
They actually don't have the $100,000 market cap entry at all, why do you think it's trading at a $500k market cap after only a few hours?
The influencer will get a whole lot of credit and praise from those unknowing.
But make no mistake, every single dollar came from his own followers, you'll often also hear the following excuse:
"How can someone hate me when I made them money!?" It is very convincing for people on the sidelines who have just been following or discovering the account.
But the ones that actually joined the call? They have been dumped upon because, again, the money he made in a few hours? It has to come from somewhere.
That's the grim reality of most of these "micro meme cap influencers," which not a lot of people know: the influencer is playing a game he can't lose and doesn't care a single f*ck about any of you.
They will be growing their accounts and earning massive amounts of money along the way.
They will probably even hate me for saying this, but that's only because scum doesn't want to be called scum.
This industry has surprised me a lot of times, and even accounts I considered "legit" back when they were smaller accounts have completely shifted their ways.
"I'll never be like... or... or..."
No, sir, you've become worse. You've become the plague of the industry, making life worse for everyone. Everyone except you, be careful which accounts you give your attention to.
Many of you will need it. Now more than ever, with the next bull on the horizon,.