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Weak Hands Meaning

Weak hands is a colloquial term used in trading and investing to describe individuals or entities that panic-sell at the first sign of price volatility or adversity. These investors typically lack conviction in their investment thesis, have low tolerance for risk, or are over-leveraged.

In cryptocurrency markets, where price swings can be dramatic, weak hands are often contrasted with “diamond hands,” which refers to those who hold their assets despite volatility.

Recognising the behavioural tendencies associated with weak hands can help traders anticipate market movements, as a wave of selling by weak hands can exacerbate declines.

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