Yesterday in my livestream, I told you that you could still short $STO when it was around $0.40 because I think it would go back to the starting point of the pump and dump scheme - around $0.10.
And that’s exactly what happened.
The funny part is… someone could have bought when it started pumping, made profits even during the dump, closed their position, and think it was strategy.
Maybe even come and comment about it.
What they don’t understand is that these whales already have funds prepared for this.
They use that liquidity to buy and push the price up.
But once they start, they can stop at any moment. You don’t know when their buying power is exhausted.
And when that happens, the game changes.
They can start selling progressively… or dump everything at once.
If they hold a large supply and sell aggressively, the price can crash instantly, without giving you time to react.
That’s why buying into a pump is extremely risky.
If you didn’t catch the move from the very beginning, the risk/reward often doesn’t even make sense.
On the other hand, the downside is usually more predictable.
When whales are distributing (selling), you can often see small bounces, corrections - moments where you can position yourself with a clear stop loss.
You know one thing for sure: they’ve already bought… and now they are liquidating.
That creates a higher probability of continuation to the downside.
Your edge is to identify when the momentum of the pump is weakening… and align with the sellers.
Of course, fast dumps are harder to catch.
But overall, shorting the distribution phase is less risky than buying the pump.
Buying -> you’re playing against whales.
Selling -> you’re moving with them.
