I like to call them the Crypto Killer-Whales which are basically the stop hunters executed by large traders (or “whales”) in the financial markets like foreign exchange and cryptocurrency. When these killer whales see clusters of little fishes (which are commonly retail traders) with their stops resting near the location of the almost same prices, then the killer whales push the market through the orders, forcing such retail traders thrown out of their positions immediately in a very short time, it's really shocking.

In that kind of case, you felt that you have already the correct trade idea but you were still stopped from your trades by losses or even margin calls. The turnaround was so exactly as if someone was hunting your precise order level. It is notoriously frustrating for almost retail traders. 

A recent example happened in Bitcoin (BTC/USDT) at 18:00 (UTC) on September 21, 2022, when the killer whales executed groups of small fishes either at their resistance level of 19,526 or the support level of 18,798. Unmitigated killer whales had moved with a force of USDT 1,283 biting from the position of 19,956 to 18,674 and forcing all little traders to out from their positions. The chart of this event can be seen in the image below,

Now the most important question is, how to deal with such stop-hunting situations executed by killer whales like the one above. One strategy that I want to share here and can be performed easily (hopefully) is as follows:

1. Always set stop loss on your order, and this should be a must, especially in highly volatile markets like crypto.
2. Always place your orders in the value area, that is your Resistance or Support.
3. Place your stop loss with the smallest financial risk. Of course, you have to understand how to place a stop loss at the edge of pins which is the end or trough of the price movement.
4. Make a trailing stop every time the market goes through a cycle of peaks or troughs, or you can trail and hold on to a zero-stop loss position. So in this case you have traded without risk at all and you will not be able to be defeated by any killer whales anywhere at any time.

In addition, the existence of Bitcoin volatility such as shown in the 1-minute chart above means that earning money online by performing spot market trading such as in the crypto market is endless whether the crypto prices are in their highs or lows, because in trading the prices are not a reference, what matters is their volatility. However, it must be noted that trading carries a high risk of financial loss and even capital loss besides its potential for profits.

Therefore it is important for a trader to have the proper strategy in trading and always be disciplined in that strategy. The ultimate strategy of trading is to avoid totally consuming your capital. The next top strategy is to keep your profits growing little by little and over time to reach a hill of money. 

Read here the original article from the Author

Disclaimer: This article is based on my research and personal opinion. This is not an order or an invitation to do. Investing in the cryptocurrency market provides both benefits and risks. Every investment decision is the responsibility of the individual who made the decision. Please invest according to your personal risk profile.