Opportunities come in many shapes and sizes in the crypto currency markets. Day after day, there are hundreds of traders who lose some, or all of their money. So, in that same token, there are traders who are on the other side of these losing trades – who are extracting large bundles of money from this market on a daily basis. But, don’t let my use of the word “daily” fool you…
Altcoin traders that win on a daily basis, will have worked their way into these winning positions over a period of several days, weeks or months. So by the time you see the price of a coin taking off and exploding into new heights, you must realise that you are already too late.
I mean, sure… you can buy into a pump and maybe score a 20% profit on 1 BTC… That’s cool right? … well, no! That’s not cool… because there will always be a small group of traders who will have already positioned themselves into that coin days before (with much more than 1 BTC) who will most certainly score a 100%+++ profit from that same move – in fact, your entire position in that coin will have only contributed to making sure that a skilled trader scores an abnormally large profit.
You see, this is how the market works.
The altcoin market allows people to “get there first” so that they can lace the territory with an arsenal of landmines, position sharpshooters on the roof tops of near-by buildings and allocate a battalion of troops at strategic locations – all with the sole intent of ambushing each and every outsider who steps even one foot onto the battlefield.
Most novice traders naively stroll directly into the middle of these “ambushed battlefields,” by placing their trades during the wrong phase of the price cycle… and then they begin to scratch their heads when the market punishes them and swallows their entire trading fund, even though all of the “conventional wisdom” dictated that they should have profited…
Could conventional wisdom be the bait that lures the lamb into the slaughterhouse?
People naively say, all the time.. you must “only buy coins with high volume”… you must “only buy coins with strong buy support”…. “that coin is ‘dead’, stay away”… look, that coin is pumping “buy NOW!” ….you have to “diversify to avoid risk”.. and etc
This is the advice that is naively handed out and actually followed by 99% of the participants in this market, thus this is the “conventional wisdom” of the crypto currency market.
Now… ask yourself… How much money have you made from following this kind of advice? Then (and think about this one, visualise each and every one of your last trades) ask yourself how much money have you lost by following this advice?
Simply… conventional wisdom IS the bait that lures the lamb directly into the slaughterhouse!
There is a lot to be said about ‘doing the opposite’ of the average information deficient trader – this is because, a skilled player knows that novices have been manipulated into believing certain things about the market that just aren’t true. So this skilled player puts himself in position to not only take advantage of this, but to profit from it.
Imagine the altcoin market was actually a game of chess. Of course then, you will have those who are experts at the game of chess who have been trained by the most renowned chess masters in the world, and therefore are themselves masters of strategy and can defeat any opponent – even with their eyes closed…
… however, there seems to be waves of people who have never played a game of chess in their lives, showing up, putting large amounts of money down, and then betting that they can defeat those who have mastered the game…
Clearly each and every one of these guys lose… again and again… and they never seek to expand their skills. They just keep turning up to the chess table and doing the same thing that they did the day before, and thus – they continue to lose. The chess masters wipe the floor with these guys.
This is what happens in the altcoin markets, day after day…. after day.
The market is fashioned in such a way, that if you can put yourself on the opposite side of a novice trader, you will make money – by default.
However, in order to do this.. you must ensure that you aren’t reading from the same playbook as the typical and unprofitable, novice trader.
New coins that open to high volume rallies offer ‘shorter’ long-term opportunities, to those who are able to take advantage of the decline in value that occurs after each and every rally. Coins that have been on the market for several months, and have managed to maintain a suitable level of activity – are always ripe for the picking, so as long as you are in tune with the price cycle (recurring elements) of each individual coin that fits this description, you will do very well.
Trading isn’t about ‘guessing’ what is going to occur in the future – it is about realising that the price chart of every single coin is merely a graphical representation of human behaviour. Human behaviour is very predictable because we all have behavioural patterns that we exhibit again and again. For instance, I may take someone out for lunch twice – and both times, they may order the exact same meal and drink. So the third time I take them out, I will be able to complete that person’s order on their behalf – by using the ‘behavioural patterns’ that they exhibited in the past. The markets are exactly the same… certain processes repeat again and again. So it is your job, as a trader, to use this information to your advantage.