Traders and investors who lack confidence in their methods or the means to implement them are frequently referred to as having “weak hands.” Additionally, it describes a futures trader who has no intention of ever taking or giving delivery of the underlying item or index.
The term “weak hands” is widely used with a negative connotation in both the Forex and cryptocurrency markets to describe the actions of novice and irrational traders. These traders typically offer predictive trading patterns and approaches, which market makers and seasoned traders regularly take advantage of.
A “weak hands” trader is someone who makes random purchases or sales that are motivated by feelings rather than reason. They frequently sell their assets at a loss when the market exhibits any kind of negative behavior or in response to unfavorable news. Such people are susceptible to being “shaken out” by regular price fluctuations and don’t believe in the long-term growth of their investments.
