Forget everything that you ‘think’ you know about trading the altcoin market. Because the more conventional the knowledge that you have is, the worse your performance will be. Quite simply, most of the information that you have, pertaining to the successful trading of altcoins – was constructed to suit the interests of skilled players and I’ll explain how.
Time and time again, a novice trader will mention that he takes pride in “doing the opposite” of what everyone else is doing – yet this novice trader will be the first person to throw his money into a coin that has just had a 100% price advancement and an excessively high influx of trading volume.
Quite simply, being able to remain consistently profitable when dealing in the altcoin market means that you understand that every single day in this market, two variants of traders go to battle – and only one side wins, again and again.
These two variations are:
1. Novice traders (casual traders, amateur traders, experienced but unprofitable traders, etc)
2. The skilled few (Skilled traders & market manipulators)
The skilled few will win every single battle in this market and they will win with very little effort. Simply because market manipulators set the rules for the game, skilled traders familiarise themselves with the rules of the game – whilst novice traders don’t even realise that there is a game being played.
You see, novice traders believe that trading and gambling go hand in hand. They believe that it is impossible to consistently predict the market… They have been indoctrinated into having these thoughts – and we all know that you cannot have action without thought, so novice traders ‘act as if’ trading is literally gambling.
A common saying is “the greatest trick the devil ever pulled, was to convince the world that he doesn’t exist.” The connotations of this apply perfectly to the altcoin market.
I mean, it’s just like living in a house that is built on top of an ancient gold mine and not knowing that right below the foundation of your kitchen is a shed load of gold.
If you do not know something is there, then you will never look for it.
People will spend hours waiting to see a “wedge” form of the chart before they purchase their way into a coin. They will sit on their hands until they see the “double top” pattern appear on the chart before they buy some coins. This is complete lunacy… Just ask yourself how many times does the price have to rise and fall before a “head and shoulder” pattern appears on the chart, then ask yourself how much money you have ever made from searching for these absurd patterns.
There is a reason you have been taught to read the charts in this way, and that reason only serves the interests of the skilled few.
Whilst you are looking to spot the all divine “cup and handle pattern,” something much more crucial and significant is taking place in the background whilst your attention has been diverted.
I have mentioned time and time again, that there are several recurring patterns that appear in every single coin on the market – and I am not talking about the “triple bottom reversal” pattern either (lol), I am talking about recurring price cycles.
You see, there are cycles in everything. Life itself is a cycle. So what makes you think that the altcoin market is any different?
Quite simply, the only thing that you are engaged in attempting to determine is when the line is going to move from the bottom of the chart to the top of the chart – and believe me when I tell you that once the price of a coin goes up, the only thing that can happen after that is for the price to go back down – once that happens, the only thing that can occur is for the price to lift… and there you have the cycle.
This is not rocket science, so do not waste your time researching pointless resources.
I mean, people will moan all day about “inside information” but will never stop to realise that if someone is planning to drive the price of a coin higher, then this person must first purchase a portion of that coin himself in order to profit at a later date – ALL of these purchases are always blatantly exposed on the charts, meaning EVERYONE is on a level playing field in terms of being able to pull continuous profits from this market – because accumulation is always revealed on the charts before the major move takes place.
Let’s take a closer look at this CLOAK trade as an example.
CLOAK is a popular coin, however, it has only had one major rally in its entire history. This rally was a high volume rally as it took place during the tail end of the last, market wide, bull run. From Jun 18th 2014, to the peak of the rally on Aug 1st 2014, the total trading volume for CLOAK was a sensational 4,418.33 BTC – on Aug 1st 2014 the price of BTC was $607.04 USD, so we’re looking at a total trading volume of approx. $2.68 Million USD
During this period, the price rose from 20,011 Satoshi before settling at 345,000 Satoshi and producing a 1,624% gain for those who were able to see the move through from start to finish.
But this isn’t the most crucial piece information here… What interests me the most, in any coin, is the % decline after each rally.
You see, after CLOAK reached its peak of 345,000 Satoshi on Aug 1st 2014, it began its decent. In fact, CLOAK continued to shed value for 5 months straight. It reached its absolute lowest point on Dec 29th 2014 at 1,635 Satoshi, which represented a 99% decline from the peak of the last rally.
Now… (and please take this is in)… I personally have NEVER seen a coin lose more than 100% of value… Simply because the law of maths dictates that it is an impossibility.
So this is why I laugh, sometimes even out loud, when a person suggests that it is impossible to always buy the absolute bottom.
Many people do this every single day.
But going back to my overall point. Provided that there is an ounce of popularity – which is where altcoins derive their value (popularity), a coin will rise and then fall and then rise and then fall. This is the cycle of the market.
So therefore, it is not your job to track every item of “news & updates” that are released… It is not your job to sit there in anticipation of some “head and shoulders” pattern revealing itself to you…
Simply put, every single piece of relevant information regarding ANY coin is always revealed on the charts. So therefore, it is your job to understand the correct method of reading charts.
Until you do that, you will always fall into every single trap that the skilled few have placed for you – and there are many.
There two variants of traders that go to battle each day in the altcoin markets. Novice traders and skilled traders. These battles have been rigged by the skilled few, in favour of the skilled few. Therefore those who trade with the novices mind-frame will always draw the shorter end of the stick in this market. The main determining factor in what makes you a novice, and a skilled player is the way you ‘think’ about this market. You cannot have action without thought, and so it is your thoughts that dictates your actions when trading altcoins.
Being successful on a consistent basis means that you first have to realise that not only is it possible to be continuously successful in this market, but there many people who win, consistently, week after week – and they manage to do this because they are familiar with the rules of the game. There is a system to the way money flows through this market. Either you are the one feeding money through this system, or you are the one that the money flows to. It all depends on when, and where you position yourself.