Weak Hands: Defined in CryptoCurrency

Weak Hands: Defined

 

Weak Hands: is defined as an investor who doesn’t have the confidence to continue owning his investment during troubled times.

A wise investor creates a plan for his investment before buying.

He strategically decides when to buy and when to sell.

Weak Hands: describes someone who gets nervous and sells the investment before their plan can be completed.

Weak Hands: are often identified as people who sell as soon as the value of an investment drops in price.

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Weak Hands,

What are 'Weak Hands:':

In the financial trading market places, investors, and traders have "Weak Hands" when:

1. They lack the conviction to stick with an investing or trading plan. 
2. They lack the resources to carry them out.

This may manifest into a futures trader that never intends to take or provide delivery of the underlying commodity or index. 

However, Weak Hands similar to refers to an investor or trader who can quickly exits a trade on almost any detrimental news or a break from an obvious technical pattern on the charts.

Research Similar Terms:

1. Weak Shorts
2. Technically Weak Market
3. Desk Trader
4. Selling Into Strength

BREAKING DOWN 'Weak Hands':

A Futures Trader with Weak Hands is a speculator, and profiled as a small speculator that enters and exits positions with the intention of reversing those positions before expiration.

Typically, a trader without financial resources associated with delivery and storage of the underlying commodity targeted market.

Weak Hands investors and traders exhibit predictable behavior.

This includes buying immediately after the market breaks out to the upside from a technical pattern on the charts or selling immediately after the market breaks to the downside.

Dealers and institutional traders exploit this behavior by buying when Weak Hands traders sell and selling when Weak Hands traders buy.

This forces the Weak Hands out before the market starts to move in the originally desired direction.

Common problem for investors and traders is buying or selling at the very worst time.

Example:
 

When bear market nears its end may signature losses for those who hodl, (Hold On For Dear Life), as the market falls.  This maximum fear becomes the driving-force in people's minds and weakens them.


Sentiment is an extreme for bearishness and Weak Hands is fear.

Strong Hands see the opportunity.

Strong Hands can buy when prices dips, because they have resources for the draw-down.

Bear markets are relatively infrequent as an example of Weak Hands when stocks with solid fundamentals and chart patterns falls with stocks of a related company issuing bad news on earnings or some other business event.  

Weak Hands quickly sell, but the stock rebounds sharply.

There was nothing wrong with these stocks and the price dip resolves into a buying opportunity.

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