Yes, there are attempts to manipulate prices in financial markets. This refers to deliberate and illegal operations that artificially affect the price of a security or market commodity. These operations can be carried out through disseminating false information, creating artificial demand or supply, insider trading, and other fraudulent activities. Attempts to manipulate prices can have significant impacts on investors and the overall market, resulting in losses for some and gains for others. Regulators and enforcement agencies aim to identify and reject such attempts to maintain the integrity of financial markets.
Ways to manipulate financial markets:
If you are someone who intends to make money from financial markets, it is essential to know about market manipulation methods by whales, market makers, etc., after having a good strategy. This will prevent you from losing your capital and increase your winning rate.
Below are brief explanations of market manipulation methods:
1- Spreading false news:
These rumors are presented at various levels of media in the form of rumors. They are presented on social networks by bloggers in the language of famous people or credible sources, and then widely covered.
2-Buying or selling counterfeits:
When a real person or robot in a broker takes action to increase the order volume and removes the pending orders before the price reaches them, the market starts to change direction, and those who buy based on those orders lose money.
3- Wash trading:
Robots and real individuals simultaneously buy and sell in this case, and the market volume is high in a useless candle ( Doji ), and traders interpret them as support and resistance levels (smart money points). For example, during the sale of orders, they create technical patterns as triangles and channels.
4- Stop hunting:
Many of the whales know the pending orders and stop los s of the other traders, act based on them to cash out money or take a position.
5- Price manipulation:
The broker or the exchange made a fake price that gives direction to the market in the short term and activates orders and stops.
Solutions:
- These events usually occur in assets with a small market cap, so trade on assets with a broader market.
- Using the official calendar presentation resources that are presented in the TW calendar in real-time and authentic first hand.
- Work with brokers and exchanges with reputable regulation that have banned some of these actions.
- Trade on higher time frames where there is no possibility of manipulation or pattern making.
- Avoid using pending orders as much as possible. There are robots in which you can put pending and stop loss orders without sending and registering them in the broker.
I hope this article can guide you to better performance in the market.
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