Market psychology

Market, predictions, intuitive decisions – big emotions, masses with expectations and fear.

The task here is to predict the behaviour of groups.

The market is psychology. The better we understand it – the better we'll get.

Not many write about it, for the most part, it is our observations and personal opinion.

There are 4 general psycho types of market participants:

  1. Whales – they create market movement;

  2. Bulls – funds and legal entities managing depositors' money;

  3. Independent traders, and opinion leaders (TA);

  4. Hamsters.


  • Choose a promising industry;

  • Understand allocation – collaborate with large players, negotiate and buy from hamsters;

  • Until they gain a large share of the asset, the market will not go up;

  • During the consolidation stage, they create a negative background, so it is difficult psychologically for the rest of the traders to buy.

  • Release news/info, and push TA, so that traders who work based on the analysis come in;

  • Big players provoke emotions in their favour;

  • If a big player gains a position, he can go at x10 (no counter offers) to the level of breakthrough of the global trend, so that everyone starts buying;

  • Raise prices fast and roll out positive news.

If FUD is flowing and at the same time there is accumulation on the asset, then it can be evaluated as a strategy for reversal. When following Whales, don't place take-profits.

The market is evolving and the whale game doesn't always work out because there are more and more big players.

  • Whales can survive a dip and liquidity is an issue for them: they can buy at 4, then at 1, knowing that they will sell at 20;

  • Funds can't go negative, there are reports -> hamsters will take the money.

  • Whale knows what positions the funds will quit -> dump with hold and with deprivation of funds to develop;

  • The whole fight is for liquidity, as long as someone is in position, the whale won't pull up.

If there is an accumulation of a position and news comes out about the fund's exit from the position, it is a sign towards further growth of the asset. Sometimes funds quit on the pump – it looks like the whale gives an opportunity to sell, to exit.

Independent traders, and opinion leaders (TA):

  • Run channels, and create liquidity;

  • Any whale is trying to align their actions with TA. Pumps and dumps are " designed" for TA to show movement for traders to make things work;

  • The big player lets traders trade on TA so that they gain their 5% liquidity.


  • Apathy during the fall, euphoria during the rise;

  • Those who pay for other's profits. Everyone makes money off the hamsters;

  • Playing against common expectations.

Now, what kind of investor are you? Can you beat the market from your position?

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