Whale Moves
What This Module Explains
This module helps you understand the price traps created by large investors during accumulation and distribution phases.
Its goal is to enable retail investors to recognize common mistakes and interpret market movements more consciously.
1. Pump and Dump
Pump and Dump is a process in which the price of an asset is artificially inflated (pump) and then sharply driven down through aggressive selling at the top (dump).
Purpose:
To allow large players to sell at high prices while the price is being inflated by retail investor interest.
Wash Trading
The practice in which an investor or a group buys and sells the same asset among themselves to create the illusion of trading volume and market interest.
Purpose:
o mislead retail investors and manipulate price perception.
Reverse Stock Split
A reverse stock split is a corporate action that reduces the number of outstanding shares while artificially increasing the share price, making the company appear stronger and influencing investor perception.
Purpose:
A reverse stock split aims to reduce the number of shares held by investors, create psychological pressure that forces them to sell at a loss, accumulate those shares at lower prices, and later resell them at higher prices, while strengthening the stock’s price perception for future actions.
Is Long-Term Investing a Hidden Loss?
Long-term investing encourages patience, but in many cases it is a perception trap set by market whales.
Purpose:
To lock up the investor’s time, apply psychological pressure, and after a certain period, push the stock below the investor’s entry price through a sudden drop, forcing loss-driven selling.
These shares are then accumulated at low prices, after which the price perception is rebuilt and strengthened.