In this article we will talk about, who is a "a "ahamer" and why it is so important not to become one.
On financial exchanges, as an everywhere, there is a slang. If you are already investing a little, then probably heard about "hamsters". "A rookie" is called a beginner, which trades on the market recently and, in pursuit of profit, makes hasty decisions. If you want not only to invest, but also to receive income, it is better to warn yourself against "homsterism" at the very beginning.
Why "the "hcomac"?
In the dictionary of exchange trading, "a homyak" is interpreted as "an individual", working with a small account, by analogy with a small and shy creature, prone to panic for any reason". Is considered, that this definition is more applicable to a cryptocurrency exchange, to designate a person, who does not know how to make decisions on his own, does not analyze, does not understand forecasts and trades without taking into account the characteristics of the market.
Simply put, "ramies" are those, who is a homies. They buy a coin., to sell more expensive, but they can't, because they take, usually, "on the thayas". Assets accumulate, like a a babysiome behind the cheeks.
High and Low, pump and dump
Sounds like a song. These two pairs, in which words with opposite meanings, express essentially the same thing.
Let (from English high) is the price at the peak of the chart. Low (low) – the lowest point on the chart of the investment asset.
Pamp (from English. pamp – download, pump) – creating an artificial hype around a certain cryptocurrency, pumping up the value in order to sell the coin at a high rate. Diapers "stuff the price" of the cryptocoin, to earn. "Champs" come across the bait and indiscriminately begin to buy up a popular coin.
Dump (from English. the fall, reset) – sale of digital currency in large quantities to artificially reduce its value.
Example, Elon Musk bought bitcoins on $1,5 billion and said, that will begin to accept currency as payment for Tesla products. Later, the billionaire said, that refuses bitcoin because of the high cost of electricity for its production.
Hundreds of "hamsters" around the world were led to these manipulations.. Experts say, what's on the hype with bitcoin, Musk earned more, than on the sale of Tesla cars.
And what, if you're already a homies? Further reading
What to do, if you find yourself with signs of a whamming?
1. Being a strategist
We need to develop strategic thinking. And for this, the first thing is not to panic.. The main trouble of "hamsters" is the susceptibility to hype. When there is a stir in the market, they run or buy, or sell. We need to stop, exhale and start analyzing the market.
2. Analyze the market
There are two types of market analysis: documentary and technical.
Documentary analysis is carried out through the study of financial instruments. This will help not to be affected by information noise and soberly assess the state of the market..
Technical analysis based on graph. This is a key tool for the trader, which presents the dynamics of price and volume parameters. As a matter of fact, – just a balance between supply and demand.
No wonder that experienced investors only watch charts and do not read news about courses cryptocurrency.
3. Do not trade against the trend
Main, what experienced players on the stock exchange rely on when making decisions is a trend.
There are two trends: bullish and bearish.
A bullish trend is a market situation, when the asset value rises. The name came from a comparison with that, like a bull raises its prey on its horns.
Bearish trend is a condition, when the asset price goes down.
An important rule for beginners is not to trade against the trend.. It is more profitable to make purchases when prices rise, and vice versa, if bearish trend reigns, it is better to postpone the purchase.
Everybody ran and I ran
AND, finally, not to become a "hamster", better not to act like the majority, but learn to develop your own rules of the game.
