Kardec Trader explains how market manipulators use crowd psychology to trap late traders. Early movers push the narrative, late buyers jump in expecting the trend to continue, then the price reverses and never recovers. Don't buy the dip late into a move.
Let's say you're joining on day three, you're seeing this move. You missed out on day three, and you're like, ah, it's going to go up again, so maybe I should buy. So what ends up happening is whoever's manipulating these stocks is fooling traders into believing that's going to continue forever. When everyone is saying that stocks are going to go higher, the inverse happens. When everyone says that stocks are going to go lower, the inverse happens. So what ends up happening is they trick traders that are late to the party to keep buying. But eventually, when that momentum subsides, there is absolutely no reason for the stock to continue. Traders that missed the move the previous days end up trying to buy the dips. But once the momentum finally subsides, once the trend finally changes, it's not coming back.
