How many times have you seen an altcoin recover after an artificial decline in value? There is always a disposition in the minds of novice traders to think that existing conditions will be permanent. When the market is down and inactive, skilled traders understand full and well that this lack of activity is the most distinct sign of an impending boom – a period of market wide price advancements. However, the disposition continues. When prices are up across the board, novices tend to believe that prices will continue to advance forever. You see, the one persistent fact pertaining to all market conditions is that they will change. This is the law of supply and demand.
What goes down, must come back up. This is common sense. However, most novices approach the market with a strategy that is so backwards that all they can do is lose large amounts of money.
How many times have you heard novices claim that a coin is “dead” only to see that same coin trading at a 200%+ price increase the following week?
This is the madness of the crowd! And a flaw in mentality that skilled traders exploit week after week, just so that they may double their already enormous pile of bitcoins.
You see greed is a factor that drives this market. However, when trading altcoins, greed will either be the key to your continued success or the main reason for your downfall. It all boils down to the way you channel and apply this greed in the market.
Skilled traders suffer from greed in much the way as anyone else, however – the way in which they channel this greed is much different to the way a novice trader would.
Skilled traders know that they are in the minority and that this puts them at a severe advantage in terms of profitability. Simply because let’s say for instance there were 10 traders involved in one coin. Nine of these traders are novices and only one is skilled. In other words, this means that nine traders will be putting their money directly into the pocket of only one trader.
This is why acquiring skill in this market should your most important task!
Skilled traders accumulate cash 10 times faster than the average market participant
This is not due to any form of underhanded tactics – but due to their application and channelling of greed.
You see the goal of everyone in crypto is to make money. However, in order for one person to make money someone else has to lose money. This is the name of the game, there is no sympathy in trading. If one trader eats well it is because he snatched that meal directly off the plate of another trader – this is the game that you have all signed up to. So to win, means you have to be ruthless!
Novice traders are also greedy… however, skilled traders take their greed to a completely different level.
I have mentioned before, trading is a game of psychology.
One single trade involves two people. One selling and the other buying. A single trade represents two opposing opinions, one person assumes the price is going to fall – the other believes it is going to increase. Trading is literally a mind game.
The majority only lose consistently because they are all reading from the same exact playbook and so they all behave in the same exact manner. Therefore they are not able to channel their greed in the correct way. So all of their actions in the market resembles gambling – not trading.
Skilled traders are well aware of this.
Skilled traders buy into coins that are at or close to “the bottom.” This has several connotations.
They may have to be positioned in the trade for several days, maybe even weeks – but when their coin starts to lift in price, their profits are not the same as what a novice trader is accustomed to. These profits are often in excess of double the amount that was originally put on the table, sometimes treble the amount, or even four times the original outlay.
This is because skilled traders have more greed than they do fear! They posses more knowledge than they do ignorance… So they are able to make educated buys, whilst novice traders continue to read from the same-old script: “Don’t buy low volume coins”, “don’t buy a coin with low buy support”, “oh look, the dev has released an update, that means buy”… etc, etc.
Very predictable indeed.
Skilled players thrive on information… Whether it is information of price moves that are yet to occur, or information of how the person on the other side of the trade is going to behave when certain things happen.
By now, the point should be clear.
Novice traders are the majority, they are part of the herd and trade in the exact same way because they are using the same old strategy. Skilled traders take advantage of this by simply ensuring that they are on the other side of the trade every time a novice makes yet another mistake.
Novices are all too predictable, which make it exceedingly simple to push and pull this market for the largest amounts of profit.
If you find that you are consistently losing more money with altcoins than you are making, then you must be honest with yourself. You are a novice trader. There are no ifs or buts about this. You are part of the unskilled majority and it is a guarantee that all of the money that you have lost has flowed meticulously into the hands of the skilled few. Make no mistakes, being a skilled player or a novice is merely a choice. Every time you purchase a coin at the top of market, you are choosing to remain a novice trader. Every time you sell a coin at or close to the bottom of the market, you are choosing to remain a novice. Skill, knowledge and information go hand in hand. The more information and knowledge you posses the more skilled you become. The more skilled you become, the more money you make. This is crypto!