If I were a Bitcoin Whale...

If I were a Bitcoin Whale what would I do?

Excluding early adopters whom lucked into a fortune and focusing solely on those that have made it their enterprise to move the markets to their benefit, what would I do if I were a whale?

Well first to become the mythical being that small traders refer to with hushed tones as a "Bitcoin Whale" I would need a strong understanding of the market and the physiology of mass hysteria.

If I were a Whale I would recount the mistakes that I made in my minnow stages and use that knowledge to exploit and profit off the new crop of minnows.

I would know that most people lose money and seem to join the crowd at exactly the wrong time.

I would know that when “bullishness” takes hold of a society surrounding an asset it can be very hard to see the movement for what it is–something that will pass! Just like the weather, like a train at the station or our moods; everything passes.

I would know that “Monkey See, Monkey Do” is the greatest tool in my wealth building toolbox. People buy and buy and buy, and then other people see this and buy and buy and buy.

If I were a Whale I would be patient as I know some have seen this pattern before and will hold out, saying “No way, it’s a trap, I am not doing that, its topped!! 80% of analysts are already bullish so there is no way it can go higher.”

But I am a whale so I will add fuel here and there to keep the market ticking higher so a few more stragglers join in and buy.

Sure there will be some who still hold out, but I will add a bit more fuel to tick the market higher. People will begin proclaiming their achievements and chanting that bubbles don’t exist; that you should hold no matter what.

Finally, once I have gathered my flock and silenced the naysayers by converting the masses to bulls, owning what I promoted, I sell and plunge the market the other way. I do this to feed upon their fear and build my wealth. I do this because it is my right and privilege as a whale.

If I were a whale I would know that successful traders like myself find something that works and stick to it, regardless of what the crowd is doing. Successful traders don’t let others pull them away from their strategy. This is where most traders go wrong and why the majority lose money. Despite their best intentions and the most carefully laid out plans and rules to follow most people can’t pull themselves away from the crowd when it really counts. As a whale I know that this herd mentality is what will guide the bulls willingly into my slaughter house. They will come from miles around and walk right through the doors.

As a Whale I will build the hype so that all your friends are buying and talking about Bitcoin, LiteCoin etc going up 20 percent every week. I will convert the analysts on TV to preach my gospel. I will make it very hard for most to take a contrarian view. After all, if you bet against popular opinion and are wrong, your friends will laugh at you because they believe their paper profits are going to be cashable at the bank soon.

I will make you experience (FOMO) and regret for missing out on such a great opportunity to make easy money and also experience some social sheepishness for not following the crowd. I will make it a lose, lose situation for you as heaven forbid you actually saw me working behind the scenes; as people will hate you if your contrarian view makes you money while they lose their shirt.

I know this may sound ridiculous, but consider the public outcry and uproar during the Occupy Wall Street protests, the great feelings of resentment and hatred towards whales like myself that moved markets and those traders that made millions by sticking to their contrarian views and taking advantage of the housing price collapse! Whales and Winning traders often “crucified” during major market turns when the majority lose. This is why we whales are such a secretive bunch.

As a whale I know it is very easy for you to say “I will follow the crowd for now but I know when to get out.” I know that the herd mentality fueled by the intoxication of greed and the paralyzing grip of fear will make actually doing nearly impossible. As a whale I know that crowds moved together based on the human tendency to extrapolate trends and project current conditions into the future, under the mistaken assumption that all else will remain equal.

If I were a whale I would know just how much hope to give and just how much fear you can tolerable. I would use my whale powers to kick the chair from beneath you and then offer you a helping hand back up.

If I were a whale I would continuously seek to add to my wealth by plunging the market here and there to a level most can’t tolerate comfortably; to a level where fear overtakes rationality. I would be patient and ebb the price lower and lower until the fear of the masses, the die hold holders of paper profits sell at a bargain. Then I would buy more and embrace it like manna from heaven.

If I were a whale I would feed upon the disillusioned confidence of the small trader that feels they can join the crowd and make a paper profit and then exit before the crowd to turn that into real profit. I would feed upon their lack of understanding that everyone else has set about to do the same thing, but only us whales have the power to tip the first domino.

As a whale I know that it is the habit of people to join a trend that moves markets. I know that I must use my power to move the price so as to convince the masses and create a trend. I know that if I fail to lead a large portion of traders to arrive at the same conclusion the market simply will not move the way I desire.

As a whale I know it takes the conviction of the disillusioned to fuel my desires, then it takes euphoric acceptance that “this is the new norm” to end it and “bend it. ” It then takes mass disillusionment to crash it the other way.

As a whale I know that the market won’t reverse until I have gathered almost everyone into the fold so as they are all on one side. I know that having everyone gathered here creates absolute mayhem and chaos when it’s time to exit. I know that those who joined the party late are going to lose.

It’s cold in the financial world for the average person struggling to get by. There is no warmth in this place, its dark, cold and devoid of hope. But don’t worry I bring warmth and will start a small fire on my land for you. I will add some of my fuel and strike a match so that those in the cold may see it and come closer to the light of the fire; and so they do. They feel the warmth; they find elation in the knowledge that the cold and darkness can be pushed away. From this small fire, hope has been born and they want more of it. So without fail they are soon scavenging fuel for it and stock piling it on my land so as the fire grows larger and they may continue to bask in its glow. They bring their friends, and family to share in their discovery and gain credit for bringing this enjoyment into their lives. In fact they become so entranced by this new found hope that they forget the fire has been built on my land; until I ask them to leave.

Motivation for this Article: https://vantagepointtrading.com/why-most-traders-lose-money-and-why-the-market-requires-it/