Looking back at my trades over the past few days on $IDOL , I didn’t lose money, but my trades were all pretty bad—I got toyed with by the market makers over and over.
We could call market makers like #IDOL weak hands. Similar to them was $ORDER last week: limited capital, sneaky tactics, hit-and-run. They mainly profit by triggering liquidations during volatile swings, while also unloading their spot holdings.
Market makers like $AIN are what you’d call strong hands. They have a plan for building a position—for example, last month they suddenly crashed the price from 0.2 to 0.02, then pumped it back up tenfold. When there’s a plan, you can find clues to follow.
When trading against strong hands, the market has deep liquidity and plenty of capital. They don’t care about the few hundred or thousand yuan held by retail traders, so if retail traders get the direction right, they have a good chance of making a profit.
With weak hands, they’re focused on squeezing every last bit out of retail traders. It’s tough for retail traders because the back-and-forth swings make it impossible to hold on: you can’t sell at the top or buy at the bottom. Even if you make a profit a few times, one bad trade will eventually wipe you out.
By now, judging from the token distribution, the strategy, and the amount of capital involved, #IDOL is definitely being run by weak hands.
I reckon the big guy has already sold off the project.
We could call market makers like #IDOL weak hands. Similar to them was $ORDER last week: limited capital, sneaky tactics, hit-and-run. They mainly profit by triggering liquidations during volatile swings, while also unloading their spot holdings.
Market makers like $AIN are what you’d call strong hands. They have a plan for building a position—for example, last month they suddenly crashed the price from 0.2 to 0.02, then pumped it back up tenfold. When there’s a plan, you can find clues to follow.
When trading against strong hands, the market has deep liquidity and plenty of capital. They don’t care about the few hundred or thousand yuan held by retail traders, so if retail traders get the direction right, they have a good chance of making a profit.
With weak hands, they’re focused on squeezing every last bit out of retail traders. It’s tough for retail traders because the back-and-forth swings make it impossible to hold on: you can’t sell at the top or buy at the bottom. Even if you make a profit a few times, one bad trade will eventually wipe you out.
By now, judging from the token distribution, the strategy, and the amount of capital involved, #IDOL is definitely being run by weak hands.
I reckon the big guy has already sold off the project.
