Every novice trader in this market is engaged in one task… Simply, every novice trader is actively attempting to find out; how to make money trading altcoins. The answer to this is simple… Forget altcoins. They are merely illusions.
No matter what the name of a coin is… no matter which “cool feature” it has – every altcoin is fundamentally a clone. They are ALL the same …So how does an altcoin trader make his money then?
People who win consistently in this market are in search of one thing, and one thing only. Opportunity! Skilled traders do not win because they “picked the right coin”… They win because they exploited an opportunity to profit. Remember that, and your trading will not only begin to produce continuous gains, but your trading will become exceedingly simple.
In the altcoin markets, versatility is everything. I have expressed how important it is to trade in alignment with the price cycle… I have also gone to lengths to highlight just how important it is to never play this game, until you understand the rules.
You see, when trading altcoins, there isn’t an enormous spectrum of methods that can be used to pull continuous profits from the market. In fact, there are only just a few key elements that you need to be aware of.
I have mentioned in another post that; in the altcoin market, sell resistance is the gatekeeper to profit. When this gate keeper is absent profits flow freely and abundantly, when it is present – you have no chance of striking a profit.
This is the great truth of the market, and another key factor that highlights the importance of timing (deciding when to get into a trade, and deciding when to get out)
However, many people monitor sell resistance in such an incorrect manner that all they seem to do is make ill-timed trades.
We are all well aware of how important the charts are… however, when you are in the dark – and unaware of the correct methodology behind chart reading, the charts become utterly useless.
You see, the charts expose all of the buy/sell orders that have been executed throughout a coins entire history. It clearly illustrates the movement between different price ranges… it highlights periods of accumulation and also cycles of distribution. Therefore, the charts are useful in revealing recurring movements of price – which makes altcoins very predictable.
However, using the charts to asses sell resistance – would be the equivalent of driving a car whilst only using the rear-view mirror. Because the charts can only reveal sell resistance levels as they were in the past. It is impossible for the charts to reveal true resistance levels as they stand in the present.
By the way, for those who are unaware:
Sell Resistance Definition
a. Sell resistance denotes how resistant the traders in a market are to buy through sell orders (if sell orders are relatively small in size, a trader can assume that if he buys into a coin, he can profit without an excessively huge amount of volume being injected into the coin – however, if there are multiple sell orders on the sell side that are large in size – a trader will be more reluctant to buy because there will need to be a huge influx of volume to move the price of coin to provide him with a profit.)
Typically, when sell resistance is high – the price will not move. However, when sell resistance is low, the price of a coin is free to shoot upwards as there are no blockades or “walls” in place to stall or prevent this rise in value.
As you can see in the above image, DOGE requires an injection of 35.2 BTC before it moves from 64 Satoshi, to 75 Satoshi – which is only a 17% gain.
Looking at the above image, you can see that POT only requires a mere injection of 1.6 BTC before the price moves from 600 satoshi, to 874 satoshi – which is a 45% gain will easily run further.
You see guys, timing is everything… If you don’t know how to time your trades, then you are better off sending all of your BTC into a paper wallet, and then putting that paper wallet directly into a shredder.
If you aren’t aware of how to time your trades, then you are literally throwing money away.
To win at trading, you must stop trying to find and hoard the latest altcoin. Personally, I couldn’t care less what the name of the coin is, who the developer of the coin is, or what kind of “cool feature” the coin has – if there exists an ‘opportunity’ for profit, that I will always seek to exploit that opportunity.
Ask yourself, have you been wasting time tracking altcoins by staying up to date with “news & updates” or have you been analysing the market for opportunity? I can guarantee you that those who fall into the second category have made and will continue to make the most money in this market.