Novice traders are the majority in the market, and they rarely see value until the this value is most markedly demonstrated to them, which is often when a coin is hitting all time highs and skilled traders have already cashed out 200%+ profits.
This means the majority of participants in this market do not lead, but are led into speculating on the “continuation” of a price-move (gambling), rather than understanding why and when an actual move is going to occur (trading). This is why they fail, repeatedly.
Is there any difference between trading and gambling?
The greater portion of participants in this market maintain both a conscious and subconscious view that trading is gambling. This is why they fail consistently.
There are people who have been trading altcoins since the first batch of coins were rolled out, and they are still under the falsehood that successful trading has more to do with chance than anything else. This is why they continuously lose money in the market.
You see, whilst the majority of altcoin traders will forever be on the losing end of a trade – there will always exist a small minority of skilled market participants that approaches crypto in such a way that guarantees a profitable output from their every action in the market.
Trading and gambling, as the words are used today, are substantially interchangeable, but nevertheless there is a marked distinction between the two. All traders are not necessarily gamblers, although all altcoin gamblers are traders.
The term trading pre-supposes intellectual effort; gambling blind chance.
Trading is a venture based on calculation. Gambling is a venture without calculation.
The uninitiated believe that chance is such a large part of trading that they continue to ‘act as if’ this is the case. Thus, their every action in the market serves only to enrich those who play the game the way it’s supposed to be played.
The uninitiated believe that “there is no certainty in trading”. Yet they continue to trade anyway.
a. To bet on an uncertain outcome
You see, the belief that “there is no certainty in trading” is a serious error that, again, forces unskilled market participants into ‘acting as if’ this is actually fact, which renders all of their activity in the market as mere gambling.
This batch of traders, who are the majority in the market, both consciously and subconsciously believe that trading is gambling – so they ‘act as if’ this is a fact.
They act as if the price of altcoins can just fall out of the sky at any given moment, (which is true – if you are constantly buying into coins at the top of the market) so they manoeuvre around, from coin to coin, in the most jittery weak handed fashion… opening trades, and then closing them with high percentage losses. Opening another trade, losing confidence due to the spreading of FUD and then closing the trade with another loss – only to see that same coin trading at a 200% gain several days later.
They act as if it makes sense to buy into a coin that has an alarmingly high trading volume, extensive buy support and is being excessively promoted on the various news sources – this is often when skilled traders are clearing their warehouses and unloading their coins on the uninitiated.
They act as if there aren’t hundreds of traders who make 500% profits month after month, and so they settle for small 10% gains simply because “there are no guarantees” in trading, so a 10% profit is a blessing. – Not the case
They act as if losses play a bigger part in trading than the actual taking of profit, so they approach the market in such an awkward, non-advantageous way… letting losses run on and on and on, gambling on the chance of the coin returning to a price that will bring them back to even. Yet they are prone to cutting and running with the smallest 2% profit.
They act as if there is no way to perceive and take advantage of a major price move before it actually occurs, so they spend all of their time betting on the continuation of moves that have already taken place, which can only ever produce more cumulative losses than gains.
You see the altcoin market is a projection of the thoughts and actions of a collection of human beings. And, because we cannot have action without thought – it is clear that the action we see every day in the market is driven by thought and perception.
The majority of participants in this market believe, wholeheartedly, that trading is gambling. And so this thought process is reflected in their actions.
These unskilled traders will log onto Bittrex on one random Thursday, after browsing twitter for tip-offs, with the sole aim of “catching some waves” or “scalping a quick x2.” – A winning recipe for failure.
Even the research that they do conduct is so irrelevant that it only helps to hasten the process of them losing their entire trading fund.
These novice traders see nothing wrong with taking a trade without having a holistic understanding of what the bigger picture is.
Skilled traders use this fact to milk the market for continuous profit.
Skilled traders intelligently buy into methodical accumulation – simply because they know that when accumulation ends and prices begin to tick upwards – swathes of gamblers will begin to swarm, buying through the sell orders that were intricately placed at severely marked-up levels, days before.
This is how the market works.
You see, the market needs gamblers in order for the wheels of profit to turn perpetually. Unfortunately though, this profit flows into the hands of the few – the small few who understand that to win is to play the game the way it’s supposed to be played.
Successful trading must include judgment, common sense, and market perception; whereas altcoin gambling is nothing more than guessing on the next few upticks.
An average trader may acquire market poise from time to time, the altcoin gambler never.
A skilled trader knows that there is no justification for taking a trade without any certainty of the outcome. He knows that trading isn’t only the act of buying and selling – but is also the research conducted beforehand.
Whilst novices only use the 6hr, 12hr and 1d charts, (which is like trying to win a boxing match with both hands tied behind your back) Skilled traders are fully aware that the answers to all of their questions, regarding price movement especially, are hidden in plain sight in the ALL chart. Thus when they trade, they have market poise.
Market poise is the result of a sense of mental well-being – confidence in the outcome of a speculative venture which has been entered into calmly, thoughtfully, and deliberately. Market poise is engendered by judgment, rather than by guess-work; by conservatism instead of rash chance taking: by the willingness to remain on the sidelines until a high probability trading opportunity reveals itself.
You see when, after thoughtful deliberation and commonsense analysis, we come to the conclusion that a certain coin is trading below value – when we feel confident that its price action reflects intelligent accumulation – and we purchase it, we are mentally at ease. With our having calmly considered all known factors, there is no reason for lacking confidence or for being apprehensive of the outcome.
This is something novices and unskilled market participants know nothing about. They never develop market poise because they are constantly gambling on the continuation of price moves that have already provided skilled traders with 200%+ profits.
So, with all that has been said, what is the gamblers remedy?
The average altcoin trader, because of the difficult task of controlling his emotions, temperament, and characteristically human faults, has far greater chances if he trades on the longer-term movements of coin prices than if he attempts to trade in and out for small profits.
That is the secret.
You will live more happily, worry less, you will gain market poise, and will curb your natural impatience to jump in and out of trades thoughtlessly – all whilst making more than adequate sums of money.