Trading is a zero sum game, meaning in order for you to win – someone else has to lose. Therefore it is necessary for every single participant in this market to disengage from having such useless emotions as empathy, because clearly – every other person in this market is not your ally, they are your direct competitors… Unless you have one shared objective that is
The aim of the game is to make money
As traders we are here to turn 1 BTC into 2 BTC… 2 BTC into 4 BTC… 4 BTC into 8 BTC… 8 BTC into 16 BTC, and so on. We are not here to find some altcoin to stash and hoard because it is going to be “the next Bitcoin.”
As traders, we are here to make money and that is it – if this doesn’t apply to you, and you aren’t here to make shit piles of money, hand over fist, then please don’t read on, it will be a waste of your time.
I mentioned in a previous post that 99% of ‘participants’ in this market are not – in any sense of the word – traders. They have never traded in any financial market at all in their entire lives. Some haven’t even had the experience of buying and selling regular goods for profit – thus they are one hundred percent clueless when it comes to the actual mechanics of ‘simply’ buying low, and selling high.
But… and make no mistake people… this is perhaps one of the greatest traits of the crypto currency market.
Whenever the majority is unskilled, information is your greatest advantage
Imagine having boundless experience and world class skill in the game of chess, and then walking into a room full of “hobbyist” chess players. You will be able to take complete and total advantage of each and every person – with minimal effort.
This is what makes the alt markets an absolute beehive of opportunity…
… you see, every day, the market is buzzing with countless opportunities for skilled operators to rake in ‘limitless’ amounts of cash, and please do not take for granted my use of the word ‘limitless’.
There are “hobbyist” traders (gamblers) who cruise the crypto markets each and every day – and they do so with the completely incorrect assumption that everyone else in the market is just as clueless as they are about how things really work.
You have the amateur traders who only buy coins with high volume, and excessive hype. When they buy into these types of climates, they are so absent minded that they don’t realise that in order for them to get into this coin, someone has to simultaneously be getting out of the coin – presumably at a profit. But they buy anyway… everyone else is doing it, so it must be the right thing to do?… right?
Then you have the small minority… the skilled few. These traders make it their one objective to do nothing apart from uncovering and exposing each and every instance of opportunity that exists across the entire market. Usually, the opportunities that they uncover will be found in coins with low trading volume… coins that have just had major price declines… coins that are probably being labelled as “dead”… coins that the average novice will never notice due to the fact that novices (proudly) only trade coins that are on the “first page” of Bittrex.
In short, amateur traders will spend 95% of their time making poorly executed and ill timed trades and therefore putting their money directly into the back pockets of the skilled few.
You see, you may look at the front page of Bittrex and notice a coin that is showing a 100% 24hr gain. However, skilled traders will have already worked their way into that coin days, weeks or even months before – so what is being displayed as a 100% 24hr gain, may actually be at a 500% gain over the last 30 days. Which would you rather?
Those who only focus on ‘daily’ movements will always be the perpetual losers in this market, who perform no other role apart from ensuring the continued profitability of the skilled few.
I mean, there are people in this market who don’t even understand why it’s important to look at the ALL time price chart of a coin before buying… There are people here who think they are ready to make the “big bucks”, but they can’t even read future sell resistance using the order book… There’s people reading this very post who have goals of achieving “long-term consistency” but all they do is make “short-term trades”
Numbers don’t lie
Information is the key that opens the door of success in this market, and if you don’t have that key, there isn’t a locksmith in the world who has the skills to force that door open for you.
As traders we are here to make money… where ever there is money to be made, there will always be a group of skilled players who profit due to the ignorance of the majority.
You have to be honest with yourself, because the numbers don’t lie. You can make however many public ‘claims’ of how many wins you have and how many times you have profited… but at the end of the day when you load up that bitcoin wallet – what do you see?
Numbers don’t lie…
If everything you currently know (or think you know) about trading is correct – then you must have a long list of wins and profits in your account… surely..
Or rather, do you have an endless list of loss after loss, after loss?
Information, is the only advantage in this market.
Who cares what the name of a coin is?… what does it matter who the developer of a coin is?… New features? News and updates… all useless to the skilled trader. The price charts reveal when a coin is undergoing sustained accumulation – and, quite simply, people don’t continuously throw money into something, unless they can profit because of it. You must realise that everything that you thought was true about trading altcoins could be the direct cause of each and every one of your losses. I mean, if these things were true then you wouldn’t have any losses at all right? In this market, nothing can be bought or sold without traces being left on the price charts (for all to see) and in the order books (for you to take advantage of). If you don’t know anything else about this market, then you must understand this – every time you fail and make a mistake, someone else who is more skilled than you are profits as a direct result. Build your skills, and the profits will begin to flow.