A common mistake made by skilled traders is to restrict their trading to small positions 1 – 5 BTC. These traders – unlike novice market participants – are actually making money. However, they aren’t trading efficiently and are therefore leaving piles of cash on the table. In order to expand your territory in this market, you must use your profits to generate even larger profits.
I rarely make posts directed at skilled players , so today I am going to address those who are actually making money by playing the game the way it is supposed to be played, and would want to expand their territory.
When it comes to the successful trading of altcoins – one is instantly forced into obeying the laws of timing, efficiency and compounding.
Those are literally the levels of trading.
Novice traders (the majority) are obsessed with trying to crack the timing element. The small few that actually do develop some skill that enables them to harness this element, they move onto attempting to establish consistency – making the right choices in market repeatedly, thus pulling a consistent stream of revenue.
What about the third element?
Novice traders work hard to lose money
Moderately-Skilled traders have to work harder in order to make more money
Skilled players work less than the average market participant, yet they are the largest profiteers.
This is due to compounding. The expansion of territory.
Compounding is a factor that most skilled traders aren’t including in their methodology, which is a direct blow to long-term prosperity. Simply because, if you aren’t using your profits to accrue much larger profits – then you are committing to working harder for more instead of working less for A LOT more.
Whilst others struggle to make money in crypto and so aren’t in the position to even consider these factors, as a skilled trader your goal is no longer just to “make money,” you are already making your fair share – your goal is now to expand your current threshold for profit.
You see, unskilled traders never lend any consideration to the long-term cycles that are so intertwined with the price movements of every single coin in the market, which is why they never know what to buy, when to buy or when to sell. Their every move in this market is the result of guesswork and false hope. They aren’t in the know.
This is a direct contrast to the mentality of skilled market participants.
As a skilled player you are well aware that timing is crucial. This is especially so when it comes to buying into coin and also in deciding when to offload your position.
In addition to this, being aware of the long-term cycles allows skilled players to use their profits to generate even more profits – which is an echelon of strategy that unskilled traders never reach.
Having reached the realms of consistency, or come close to achieving some level of consistency in this market – it should now be your goal to be more efficient. To reduce your workload whilst simultaneously boosting your rewards.
In order to do this, it is essential to put your profits to work.
Staying a 1 – 5 BTC trader will ensure that your profits are kept within a small and insignificant range.
Sure, you may achieve $5000 – $10,000 profits on a monthly basis – but there are others who achieve that same amount within a period as short as seven days. Some within 24 hours.
This is not the result of consulting with the voodoo priest, it is because as soon as these individuals establish consistency, they commit 100% to expanding their territory – instead of cashing out small and easy to take profits.
You see there are coins in this market that rally multiple times throughout the year. After each rally, there is the inevitable crash at which point there is a small group of traders who fill their warehouses in anticipation of the next run. When the next rally ensues, these traders form 100% of the sell side and are therefore the largest profiteers. When the coin crashes once again, these same traders amass an even larger portion than they did before – drastically expanding their profits each time.
This happens with several coins, and is what I am referring to when I say “expand your territory.”
Having 1 – 5 BTC of risk in the market is just the start. Because in order to win, your warehouse must never be empty. You must have a gargantuan haul of optimally priced coins, ready to offload when gamblers and novices get the itch to try their hand.
Consider giant retailers such as Walmart. Across their thousands of stores worldwide, you will not find a single warehouse that is empty. They are always poised and ready for distribution.
Tip: When you have successfully exploited the long-term price pattern of a coin, it is essential that you realise that it is not the end. That coin will again return to an optimal buying price – at which point you must be there to take advantage. This is how you use your profits to accrue even larger profits.