If nothing changes, then nothing changes.
If you have been misfiring your trades, and/or falling victim to the relentless exploits of market manipulators then perhaps the method that you’re currently using to trade has been benefiting others more than yourself.
This is simple physics.
Trading reflects the yin and yang of life itself, so don’t for one second assume that your loss isn’t someone else’s profit.
Literally each and every loss that you have suffered has only been a contribution, a donation if you will, to the trading fund of someone who was a little more in tune with the market than you are.
Each time you have deposited 1BTC into a trade but only withdrawn 0.1BTC, that 0.9BTC wasn’t “lost,” because if you were to surf Blockchain.info long enough, you’d find that 0.9BTC sitting safe and snugly in the wallet of some skilled trader half way across the world from you.
Everyone in this market has a specific function, whether you realise it or not.
It is no coincidence that some people win consistently whilst others lose so frequently.
Simply put, the market is almost a form of a shared consciousness. Through this system, 90% of those that participate in this marketplace are willing and content to ‘run with the pack’ so it is this group of individuals who form this shared consciousness since they all commit to buying at the same times as each other, and also selling almost in sync with each other.
The other 10% of the traders that play these markets are well aware of its nature. Thus, they reject, repel and refuse to partake in any form of ‘shared consciousness.’ In fact, taking it a step further, they exploit this herd like behaviour for their own benefit.
As a rule, the herd always misses the boat. So why would someone of reasonable intelligence conduct his buying at the same time as this herd?
As a rule, the herd always ends up drawing the shortest end of the stick. So why would a man of sound mentality commit to adopting any of the traits, beliefs or strategies of this unskilled majority?
Put simply, if it works – the herd know nothing of it.
If it spits out profit with the unrepentant force and velocity of a semi automatic rifle – the herd are not interested in claiming even a smallest piece of it for themselves…. Why is this?
Well… As I mentioned earlier, everyone in this market has a specific function, whether you realise it or not. Some are here to ‘CONTRIBUTE’ wealth to the market, others are here to ‘EXTRACT’ that wealth from the market.
The big determining factor as to which category you fall into is the strategy you are using to trade the market
Stop trying to predict the market.
The market doesn’t need to be predicted, it is a mechanism that moves in perpetual motion. As a trader, all you need to do is to move with its natural flow.
You must understand what the market is. It is a system that allows money to move from point A, to point B, to point C and then back to Point A. The altcoin market allows for an unhindered flow of traffic to surge through its course, almost like a highway / motorway.
Where people go wrong is in wasting countless hours in studying the viability of individual ‘coins’ when they know for a fact that the market itself is more than viable.
This would be like someone observing traffic flowing through a motorway, and then betting $100,000 that 5 red cars, with dark black tinted windows will pass through the motorway within the space of five minutes.
What makes this an ineffective strategy is this person has instantly heaped a pile of unnecessary risk on this bet, as he cannot state for a ‘fact’ that 5 red cars will appear as there is no particular reason for this to occur.
Whether this actually happens or not doesn’t matter, the fact is this person cannot consistently make this kind of bet as it isn’t one that is based on unmoveable facts.
An intelligent observer will instead base his bet on the facts concerning the motorway itself rather than the vehicles passing through, because the motorway itself is the only thing that ‘has’ to be there. Therefore in order to eliminate risk, this observer will bet on circumstances that arise almost as a ‘function’ of the motorway itself.
This diligent observer notices a service station, where drivers can pull into for refreshments and to top up their tanks so it is a ‘fact’ that at least 1% of all traffic that surges through the motorway will filter into and then out of the service station throughout the day – (just like how trading volume filters into and then out of an altcoin)
So this observer bets his $100,000 that, within five minutes, at least 5 cars will filter into and then out of the service station.
Then, once this actually occurs – the other guy will rant and rave that the 5 drivers were paid to pull into the service station (the market is manipulated.) He will swear that there must have been some under handed tactic involved in the outcome (pump groups, shady devs.)
The fact is, the skilled observer made his bet based on circumstances that arise as a ‘function’ of the motorway itself therefore eliminated a huge portion of risk – whilst the unskilled observer made his bet based on the most random aspect of the motorway, the cars travelling through it
Applying this simple observation to the altcoin market means taking the entire market for what it is, a conduit. It is a pipeline that allows volume to move from point A to point B.
When you lose a trade, that money isn’t “lost.” It has simply moved from point A to point B, meaning your strategy is one of a ‘contributor’ of volume, rather than an ‘extractor’ of volume.
Just like the traffic that surges though motorways, trading volume will always filter off into exits. In this market, the exits on this highway of profit are altcoins.
However, not every altcoin is in proper condition to allow volume to pass through freely.
Just like a motorway that is experiencing heavy traffic, some altcoins attract huge portions of volume and in order for more volume to pass through, the path has to be cleared – hence the natural phenomena referred to as ‘dumping.’
Therefore, it may be logical to look at a large scale dump as a buying signal rather than a sign of the apocalypse.
Once this dump has occurred, things slowly begin to revert back into its normal flow and the process repeats itself all over again: first small amounts of volume is deposited into the coin (accumulation) this then attracts even more volume, eventually the volume reaches a peak point then, finally, the candlesticks turn red as the coins price begins to ‘dump’.
Coins will come and go, so refrain from growing rooted to the marketing calls of developers.
Instead, just observe the market from a logical standpoint.
We all know that the one guarantee is that trading volume will surge through the market day in, and day out. However, volume will only flow where it is able to – this is where skill comes into play