What are you trading today, another altcoin? Nothing in this market is as it seems. You may think you are buying and selling one thing, whilst you are actually buying and selling something else. Understand that an altcoin is a tool, just like a shovel in the hands of one of the first 49’ers during the California gold rush. Day by day, this tool is used to shovel piles of BTC into wheelbarrow after wheelbarrow, all whilst the majority are distracted with smoke and mirrors. To be successful means abandoning any form of a losers mentality, and understanding that this tool can be used by every single participant in this market – however, timing is everything.
Big Guys V The little guys
To those who seek true understanding on the mechanics behind the successful trading of altcoins, it is a must that you remove all of the clutter (moving averages, bollinger bands, fibonacci etc), look beyond the smoke and mirrors (news releases, updates, “community support”, unique coin features) and realise that, in trading, if everyone was in the know – then no money would ever change hands, thus trading would no longer be profitable.
Looking beyond the smoke and mirrors will provide you with a key insight into how this market actually works.
Think of trading like an unfair and highly coordinated game of tug-of-war.
On one side you have a thousand men (the majority) working together to pull the rope into their court, whilst on the other end you have only 10 men (the minority), but they are inside of a 62 metric tonne military tank that has its parking brake firmly engaged. All they need to do is throw that tank into reverse, apply slight pressure to the gas pedal, release the clutch – and just like that, it’s game over.
You see, this is what happens, on a daily basis, in the crypto markets.
In crypto you have the majority pulling on the rope hoping to drag some profit into their own courts.
They may workout for days to build arm strength, they may purchase the best gloves to prevent rope burn, they may even have purchased the sturdiest boots in the land, just so they can stand firm in the face of any opposition – however, all of this preparation is done vain because just like the 1000 men I described earlier, these guys have already lost the game long before stepping onto the field, simply because their opponents have taken a different approach.
At all times, the minority are at ease. Because just like a boxer who has paid his opponent to take a fall, the minority know full and well that they have already won before stepping into the ring.
You see, there are coins that rise and fall repeatedly. Each rise puts money into the hands of the few. And each time these coins fall, the minority expands their holdings to a point where the next rally doesn’t even need to go as high as it previously did yet it will provide higher returns.
This is the game being executed right in front of everyone’s faces day in and day out.
With every passing day, the minority grows in strength. Each passing week, the minority claims more territory. And each passing month the minority uses the ignorance of the majority to fill their wallets with increasing sums of BTC.
Some people trade just so that they win instead of lose. Some trade just to win back what they have lost. Others want to be right all the time and gain praise. These are all the hopes and ambitions of the majority – hence why they fail.
You see there exists in this market a small group of skilled players who understand the difference between gambling and trading. Gamblers will always refer to successful trades as wins, and will throw praise towards luck because they believe that there is no skill involved in trading. Skilled players understand that to profit means understanding their customer.
I will break this down further.
You see, despite the thousands of coins being traded back and forth in this market – there are only but two products being bought and sold. The first, and best selling product of all time, is false hope. The second is opportunity.
False hope is often more expensive than opportunity.
To go even further
These products have interesting characteristics because in order to manufacture false hope one must first purchase opportunity.
Look at it like this.
When Samsung (the minority) buys 50inch LCD panels from LG, LG charges them $100 a panel. When consumers (the majority) buy 50inch LCD television sets from Samsung, Samsung charges them $1000 per television set – a 900% profit.
Now, one could argue why do millions of people, worldwide, pay $1000 for something that a small group of people paid $100 for? This is an irrational financial decision. I mean, they could contact LG themselves and purchase an LCD panel, and put their own television set together and spend about 700% less in the process. Right?
This is true, but then you have to realise that they aren’t just buying a television set – they are buying the luxury of not having to do any work to construct this television set themselves. They are buying a finished product. This is why when it comes time to sell these products, they often get less than they originally paid – because they initially paid above value.
Back to crypto
The ONLY products that are bought and sold in this market, no matter how it is wrapped up and presented – is false hope, and opportunity.
Just like Samsung, skilled altcoin players purchase bulk loads of opportunity. Price action will eventually convert this opportunity into the most expensive asset in the entire market – false hope, at which point the skilled players are offloading their stock and making 2x – 10x their money.
In closing I’d like to state that I do not trade altcoins. I trade opportunity.
I have worked my strategy not to reveal “coins that are going to pump” or “coins that will go to the moon”, but to reveal the most potent forms of opportunity.
There are certain attributes and characteristics that expose opportunity, and certain characteristics and attributes that expose false hope.
The majority have been groomed to recognise false hope as opportunity, whist the minority – the skilled market participants – understand that to profit, means to know thy customer.
Behavioural finance dictates that producers (businesses, manufacturers – the minority) will always receive their wealth directly out of the pockets of consumers (99% of the population – the majority) This is why owners of successful businesses accumulate wealth at a rapid pace, because consumption never ends. Consumption is part and parcel of life.
In crypto you are either a producer or a consumer.
Producers purchase opportunity – because it can always be sold at a higher price on a later date. Thus, they flourish.
Consumers purchase false hope, which can only fall back to its true value – at which point the producers start buying again, only to sell that same product back to you for even more profit. Thus, the majority consistently loses money.
Which product are you buying today?
Tip: The market is its own best advertiser. Everything that you want to know about everything is revealed on the charts and in the orderbooks I cannot stress this point any further than I already have. Being successful in the crypto market means that you must realise that profit makes itself readily available to you once you place yourself at the opposing end of the majority. To do this, it is necessary to have an understanding of how members of the majority think. Once you have this understanding, it is then necessary to realise that to profit, you must play the game the way it is supposed to be played.