The battle between long-term traders and short-term traders is perhaps the world’s most unfair, one-sided and unequal conflict.
Unbeknownst to them, each and every move made by short-term traders only serves to enrich and fatten the pockets of those that expand their trades over longer time durations.
Short-term traders are the most undercapitalised participants in this market, and therefore this lack of capital is what drives them towards reckless behaviour that is more akin to gambling instead of trading.
For these short-termers, it seems reasonable to go into a trade with $20 – and then cash out $22. They justify this kind of behaviour with clichés of mediocrity: “..well hey, at least I didn’t lose money. A $2 profit is better than a $2 dollar loss..”
This lack of capital forces these traders to disregard the bigger picture of market wide price movement.
So they settle for fighting over scraps and loose change.
At PumpersPicks, we don’t begrudge the small trader that has limited trading capital – because many of our own members began their journeys in this market with miniature funds.
However, the difference between a trader who begins with a little and ends up with even less – and a trader that begins a little but ends up with a lot, is the ability to go long.
You cannot trade this market with a 9 to fiver’s mentality.
Successful trading has nothing to do with how much money you make per hour, or per day – such things are the concerns of high school janitors, and shoe shiners.
Good trading is about taking $100, and then using that small amount to generate $1,000 dollars – and then using that small amount to generate $10,000 dollars and so on.
This is where the magic of long-term trading comes into play. At PumpersPicks, we have generated multiple 10x (1000% + gains) returns on investment. We have done this on numerous occasions, not because we have taken consultation with the high priestess of financial voodoo, but because in the altcoin market it is easier to win than it is to fail – once you GO LONG!
You need to stop thinking about the market in such an amatueristic way that you’d assume that you can dictate that you’re going to make X amount of dollars within a week, or 24 hrs.
There is a natural process that must take place before profit can find its way into your hands, and if you’re not patient enough to allow this process to take place, then you’d be better off leaving this market entirely.
The market doesn’t care about what bills you have to pay or how small or large your trading fund is.
It ticks away in perpetual motion, following a very strict, specific and unchanging structure – allowing for money to enter into its system and then exit through its various outputs.
Intelligent trading means that you must come into alignment with these natural processes if you’d wish not only to profit, but to profit on a consistent and continuous basis.
In fact, each and every trader who has aligned their trading activity within this structured architecture of the altcoin market will continue to extract profit as long as other traders continue to contribute trading volume into the market itself.
With that, I must draw attention to the biggest deception that literally ensures that small traders remain small traders.
You see, there is no reason to execute more than 10 trades per month – but, due to the fact that exchanges generate revenue each time you execute a buy, or a sell, it has been falsely propagated that short term trading is the fastest route to profit.
Actually, short-term trading is the quickest route to financial disaster.
There are only two variations of market participants that benefit from short-term trading – exchange owners, and long-term traders.
I feel no trepidation in revealing this deception because, just due to the way the majority of altcoin traders have been conditioned to think, I am sure that even after reading this, 8 out of 10 traders will have executed more than 20 trades by the end of today – and will therefore end up with an overall loss. Just like they did yesterday and the day before.
These individuals who commit to short term trading are the cash cows of the market. They are the ones that contribute the most money to this entire ecosystem. They keep the perpetual wheel of profit turning with endless motion… However, despite this, they themselves are the biggest losers of the market.
From an economic standpoint, short-term traders give so much – in some cases everything they’ve got – but they receive nothing or very little in return.
That is because all of their money winds up in the hands of the most tactical purveyors of the crypto currency arena. This money is kindly deposited into the stream of revenue that flows directly into the back pockets of the most skilled operators in this dark underbelly of world finance.
Put simply, short termers are unwittingly engaging strategy that enriches long term traders.
Long term traders contribute the least to this market, in terms of cash – yet they consistently withdraw the lion’s share of all trading volume that passes through this ecosystem.
Compared to day traders, long term traders spend almost no time at all in front of the screen, yet in just one month, they generate more income than a day trader generates in six months.
But continued success has everything to do with realising that day traders will work all day, and all night, executing trades upon trades upon trades that combine to boost the overall value of a coin over the ‘LONG-TERM.’
And they don’t even realise that this is what they’re doing, because they have been fooled into using only the 6hr chart as a guide and insight into the market.,. and this blinds them to the bigger picture of price movement that exists on the longer term charts.
Simply put, long term traders work less but are able to pull gargantuan amounts of profit due to the hard work of the unskilled… misinformed… and unprofitable day traders.
If you’d like to win big in the crypto currency markets, then you must learn to expand the ‘duration’ of your trades.
With so much money flooding this market on a daily basis, the question is, why isn’t any of this money landing in your pocket?
As I mentioned in previous posts, there is 500 BTC worth of volume (at minimum) flowing into the altcoin market on a daily basis. This accumulates into 3,500 BTC per week, 14,000 BTC per month and 168,000 BTC per year at a minimum.
Now, with this being said, I must ask: Are you a beneficiary of this trading volume? Or, are a mere contributor?
There is no such thing as ‘price prediction,’ consistent winners simply study the patterns that allow trading volume to boost the price of a coin, and so they position themselves to take advantage of this.
I always say to people that the “hard work” in trading comes in the preparation that comes before you execute the trade. If you’re doing it right, then the actual trade itself should be a seamless process from start to finish.
If your goal is to establish long lasting consistency in terms of profits, then the one thing that I’d say you should be doing is studying how people lose money in this market.
You should study and become familiar with all the factors that cause novice traders to lose money consistently, because more than 90% of the participants in this market are novices – and a particular and recurring trait among novice traders is that they ‘consistently’ lose money.
This one fact accounts for 100% of the cash flow in this market – and, quite literally, if you are a consistent winner in this market then that is where your profits are drawn from: the losses of inexperienced/novice traders.
Therefore, to be ‘consistently’ profitable, you must ‘consistently’ position yourself in trades that allow you to be at the opposing end of novice traders because, for the most part, an inexperienced trader who isn’t using a strict strategy, or isn’t part of a trading group or syndicate, will lose money 98% of the time. Guaranteed.
So you shouldn’t be just simply “trying to win.” You should be trying to put yourself on the other side of market novices.
If you position yourself into a trade correctly, then every time a novice trader misfires and loses money – BINGO – you’ve profited… (be aware, every time you are trading a coin 90% of the opposing traders will always be novices. So this strategy is an incredibly potent one)
It’s as simple as that… especially when you ask yourself, “when is it that people generally lose the most money in crypto?” – During/After a major price advancement!
Therefore you must switch from “chasing pumps,” to looking for “opportunities” that will evolve into the major price advancements, so that you can get there first and profit when the laggards/amateurs/novices arrive.
When you “get there first” 98% of the work will be done for you by the rest of the market, allowing you to sit back and count your money as it rolls in.
Trading isn’t about working hard, it’s about being time efficient and outsmarting the person on the other side of the trade.