In order to avoid danger, one must first know where danger lies. A cross-section of the operation of novice traders in crypto shows a lack of interest when prices are low and the market is dragging along. When prices begin to advance, these same novice traders finally start buying, and this buying increases in proportion to the extent and velocity of the advance. In other words, as prices are rising, novice traders are 99.9% bullish, whilst skilled traders are 99.9% bearish (it is the skilled traders that make up 99.9% of the sell side throughout the entire duration of a bull run).
The implication is, there is obviously a disconnect when looking at the mindset of the unskilled trader in comparison with the mindset and approach of the skilled trader. Although it is common knowledge that, in order to win, you must “buy low, and sell high” – novice traders approach the market in such a peculiar way. They view low prices as high (or too risky) thus they refrain from getting into the most optimal, high profit trading opportunities.
Even more peculiar, novice traders view high prices as low (or less risky – “since everyone else is buying”) so they also buy in (at the top of the market) and fail to make a profit simply because – the only time you profit is when you are selling whilst ‘the herd’ is buying. Novice traders lose because they are ‘the herd’ who buys whilst skilled traders are selling. So, to succeed in crypto, all you need to do is alter your mind-set.
To the people who have been sending me messages about how accumulation works etc, etc this process unfolds, from start to finish every week in the market. So, pay attention – as this knowledge can be used to generate a string of repeat wins.
Now, let’s say an opportunity is spotted – in the form of a correctly priced (cheap) coin.
The first necessary detail, is to gather the largest amount of this coin as is possible. In order for this to be done, manipulation takes place within a certain range of prices to “shake the trees” and force sellers (weak hands, novice traders) out of the market which helps to accomplish the goal of building a substantial position.
Now, there is a major factor here that must be mentioned.
As I stated earlier; In order to avoid danger, one must first know where danger lies. How does this relate to manipulation you may be wondering? Simple. As prices are being moved up and down, a trail is left in the order books – and on the charts. Which means that any Tom, Dick or Harry can profit from this manipulation – simply by realising ‘oh look, this coin is being accumulated. I will work out what the accumulation price range is, and build my own position within this range’ – that is how skilled traders operate.
This manipulation may be assisted by natural market conditions, which encourage sales by weak hands – at a loss. Frequent persistent attacks on the coin by accumulators are carried out, to further dislodge those holders who had previously refused to sell, etc.
The point is, there is no barrier to buying in during the accumulation phase. In fact, the only requirement is common sense, intelligence and doing that one thing that everyone claims to be doing – ‘buying low, and selling high’.
It is that simple, no tomfoolery involved.
However, despite how obvious it is that – to succeed – you must buy during accumulation and sell during the distribution phase, it is only the slight minority who commits to filling their warehouses during the accumulation phase.
Out of 10 traders, only one buys during stages of accumulation – and sells only during stages of distribution. Thus, 9 out of 10 traders are approaching crypto with the most incorrect strategy.
As harsh as it may sound, this is the truth. Trading Altcoins is so profitable right now, because it is the only market where 99.8% of the participants have absolutely no clue as to what they are doing.
So many people lose money in Crypto, which means that there is the small minority that consistently makes money. Again, and again.
It’s like I mentioned in a previous post, if a betting game among a number of participants is played long enough, eventually one player will have all the money. If there is any co-operation, Intel or strategy involved, it will accelerate the process of concentrating all the stakes in a few hands.
Lucky for you guys, being a skilled or unskilled participant in the altcoin market is merely a choice. And every time you buy a coin at the top of the market, you are choosing to remain an unskilled trader. Conversely, every time you buy into a coin during the accumulation phase – you are choosing to win.
The choice is yours.
Most novice, and even experienced – but unskilled traders, are under the falsehood that there are no certainties in trading. Yet they continue to trade anyway.
This batch of traders, who are the majority in the market, both consciously and subconsciously believe that trading is gambling – so they ‘act as if’ this is a fact. They act as if losses play a bigger part in trading than the actual taking of profit, so they approach the market in such an awkward, non-advantageous way… letting losses run on and on and on, gambling on the chance of the coin returning to a price that will bring them back to even. Yet they are prone to cutting and running with only the smallest 2% profit.
They act as if there is no way to perceive and take advantage of a major price move before it actually occurs, so they spend all of their time betting on the continuation of moves that have already taken place, which can only ever produce more cumulative losses than gains.
You see the market is a projection of the thoughts and actions of a collection of human beings. And, because we cannot have action without thought – it is clear that the action we see every day in the market is driven by thought and perception.
The majority of participants in this market believe, wholeheartedly, that trading is gambling. And so this thought process is reflected in their actions. Skilled traders use this fact to milk the market for continuous profit.