Crypto Terms: Letter W
What are Weak Hands?
Weak Hands -
a term that is usually used to describe a trader or investor who is compelled by fear to swiftly quit positions in response to nearly any negative news about the market.
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Weak hands refer to an investor or trader who is forced by fear to quickly exit positions in response to practically any negative news or events, resulting in realized losses and lower returns on investment (ROI). They follow a set of rules that make their trading actions predictable, and they are easily scared by normal market price fluctuations. As a result, they end up purchasing at high prices and selling at low prices, which is exactly how they lose money.