âWeak handsâ is a term used to describe a trader or investor that lacks the confidence, resources, or ability to hold their positions or to stick with their trading plans. However, the term may be employed differently according to the type of market.
So we may define a âweak handsâ trader as the one that buys or sells compulsively, driven by emotions rather than logic. They tend to exit positions when the market shows any sort of bearish behavior or due to bad news, often selling their assets for a loss. Such individuals donât believe in the long term growth of their investments and can be easily âshaken outâ by common price swings.
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