Your information is very useful. Thank you. It was a great tip.
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Dierri-Investidor
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Why do these general drop movements happen?
It's simple.
The whales agree among themselves "Let's make a profit today", how do they do it?
A simple general liquidation movement by the whales drops the entire market by 10% in minutes, and that's enough for the entire school to go into despair, starting a herd effect of sardines selling. Selling out of fear of the drop, stop limit orders are activated and the avalanche begins. When the general drop reaches 20%, the whales start buying and the price stabilizes and goes up again, so the whales increase their portfolio by 10%, causing a 10% recovery, the sardines regroup and start buying again at a higher price than they sold, so their portfolio loses in quantity, causing another herd effect of growth until the next whale attack on the school.
That's why the falls are sudden, bringing down the entire market by an average of 10% in hours, and the rises are slow, taking weeks or months to recover, since the sardines are disorganized and fearful, some follow the herd effect, while the other part gains courage over time.
In 3 years of operation, I've suffered everything. 1 year ago, I started with 50,000, I saw that value melt to 33,000, I saw the 33,000 rise to 64,000 and now with this sequence of falls, the 64 has become 45,000. I was supposed to have a higher value, but during 2024 I entered the herd effect several times due to inexperience, selling for example 10,000 STPT for 1,700 USD during the fall and buying back 9,000 STPT for the same 1,700 during the recovery. A tip: analyze each coin before buying, leave promising coins in your favorites and analyze only them, don't buy meme coins and new coins without first evaluating the project.
Good luck to everyone.
It's simple.
The whales agree among themselves "Let's make a profit today", how do they do it?
A simple general liquidation movement by the whales drops the entire market by 10% in minutes, and that's enough for the entire school to go into despair, starting a herd effect of sardines selling. Selling out of fear of the drop, stop limit orders are activated and the avalanche begins. When the general drop reaches 20%, the whales start buying and the price stabilizes and goes up again, so the whales increase their portfolio by 10%, causing a 10% recovery, the sardines regroup and start buying again at a higher price than they sold, so their portfolio loses in quantity, causing another herd effect of growth until the next whale attack on the school.
That's why the falls are sudden, bringing down the entire market by an average of 10% in hours, and the rises are slow, taking weeks or months to recover, since the sardines are disorganized and fearful, some follow the herd effect, while the other part gains courage over time.
In 3 years of operation, I've suffered everything. 1 year ago, I started with 50,000, I saw that value melt to 33,000, I saw the 33,000 rise to 64,000 and now with this sequence of falls, the 64 has become 45,000. I was supposed to have a higher value, but during 2024 I entered the herd effect several times due to inexperience, selling for example 10,000 STPT for 1,700 USD during the fall and buying back 9,000 STPT for the same 1,700 during the recovery. A tip: analyze each coin before buying, leave promising coins in your favorites and analyze only them, don't buy meme coins and new coins without first evaluating the project.
Good luck to everyone.
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