Do not fool yourself into believing that you understand the way prices move in this market if you do not. Because your BTC balance will always reveal the truth.
You see, the altcoin market punishes ignorance and rewards skill. The lack of understanding means that you are executing trades without having any picture of what the outcome is going to be, you are making it all too easy for skilled players to make money due to your mistakes – because if you do not understand price movement, then you will fall into every single trap that has been laid out for you – and believe me when I say that there are many pitfalls awaiting your arrival. All of your money will flow into the hands of the skilled few if you do not commit to separating yourself from the average information deficient trader.
Many would claim that there are many methods of trading altcoins for continuous and substantial profits. This isn’t the case. In fact, there are only but a few crucial methods that can be applied to the altcoin market to generate large bundles of cash in almost no time at all.
Along with actually being familiar with these methods, you must also be able to precisely execute these methods whenever the opportunity presents itself.
You see, each and every coin is following a particular pattern of movement. This pattern is known as ‘The price cycle.’
The price cycle always begins with the accumulation phase… then it moves into the distribution phase and then finally – the inevitable crash. Then, the entire process repeats itself.
Therefore, if you aren’t aware of this recurring cycle of movement – then how would you ever expect to “buy at the right time?”
Make no mistake, timing is everything in the crypto market.
Those who consistently buy at the wrong time haven’t got even the slightest chance of making any real money. However, those that can’t seem to stop making trades that are timed perfectly are either knowingly – or unknowingly – trading in alignment with ‘the price cycle’ and are therefore making the most money in this market.
If you haven’t already, then I’d suggest that you familiarise yourself with and develop a true understanding about how this game is meant to be played.
You see, there are many people in this market who fool themselves into believing that they truly understand why and how prices move. But their BTC holdings (or lack thereof) tell another story.
Simply put, in the altcoin market, self deceit is something that can only extract wealth directly out of your pocket, instead of adding wealth. Clearly, you are dealing in a market where there is a group of skilled individuals who want nothing more than unskilled traders to attempt to play the game – because unskilled traders are information deficient, therefore the majority of their trades end up being losses… and where do you think that ‘lost’ money flows to? … It flows directly into the hands of the skilled few.
The key to uninterrupted profits is information.
You must understand that, in the altcoin market, money flows in tandem with supply and demand.
Demand for a coin is dictated by popularity, and coins reach the height of popularity when they are rallying and breaking through previous ATH levels. Interestingly, this is when the majority of participants in this market (unskilled traders) decide to execute their buys – at the top of the market. These novice traders make their trading decisions based on popularity, therefore their timing is always off – thus they always tend to lose money.
In contrast, when it is easiest to get large amounts of money into a coin, this can be referred to as the ‘supply’ being high – simply because more traders are willing to sell – and at any price. This only occurs during a crash, or during the aftermath of a crash.
The law of supply and demand dictates:
1. When the supply is high, then the seller will accept any price (when prices fall to rock bottom levels the supply will always exceed demand)
2. When the demand for an asset is large then the buyer will pay any charge! (this is why prices climb to exceedingly high and unreasonable levels when demand (popularity) outstrips the supply)
You have to realise that, when making a trade, you must behave like a buyer. This is simple stuff. I mean, when you buy a car do you accept the first price that the dealer offers – or do you shop around looking for the best deal?
I mean, everyone knows that when big retailers first release long anticipated videos game consoles after a several month long campaign of promotion and advertising, buyers immediately rush, in a frenzy, to make their purchase. During this period, the price for this console is at the highest level that it’s ever going to be – this is why many people will wait a few months before buying, so that they can get a better price. What these buyers are actually doing is waiting to buy when the demand is low – thus, buying at the correct stage of the price cycle.
As buyers we want to pay the lowest price possible, and the price is lowest when the demand is at rock bottom levels.
If you have an understanding of sell resistance, then buying the right coin becomes even more simple. I’ll touch on that in my next post.
Enormous amounts of money flows into and then out of this market on a daily basis. Just spend one day observing how the action unfolds. You will begin to see where the money flows to, and why. This will enable you to put yourself directly in-between this flow of capital, and to redirect a portion of this cash flow directly into your own pockets – making your ascent to consistent profitability almost effortless. This is essentially what skilled traders do on a daily basis and is why they make money in the altcoin market ten times faster than novices lose money. It all comes down to understanding the laws of supply and demand.