In the crypto markets, the events that occur on the surface level represent only 10% of what is actually going on. The various exchanges act only as refined algorithms that can only relay information to you once price movements have already taken place.
There is no apparatus that publicly displays the intentions of the various trading alliances who have banded together in order to create most of the movements that you see illustrated on the price charts
There is an entire world of manipulation being executed behind closed doors, and it is a fact that each and every major price advancement is a mere ‘effect’ of co-ordinated and strategic manipulation.
In my last post, I made reference to the fact that the altcoin market contains a multitude of levels.
Just like any other game of strategy, as you progress through the levels, the rules and methodology become more complex.
However, in the crypto market – there is one caveat that makes it incredibly simple to score profit after profit after profit: 99% of participants in this market continue to apply level one methodology, no matter how far they travel into the game.
Level one methodology consists of buying a coin (usually due to a false buy signal) then waiting around until something happens, before selling at either a loss or a small gain. This methodology is adopted mostly by individual traders (lone traders) who are basically at affect to whatever happens around them. These types of participants wrongly assume that they are competing in a “fair market,” but little do they know, 99% of price moves are ‘artificially engineered’ by trading groups and alliances. But because this lone trader isn’t in the know, he continuously ‘takes the bait’ and, more often than not, ends up losing out because he is trading from the outside and is completely unaware of the ‘intentions’ of the insiders.
Are you a level one trader? …If your losses outweigh your gains, then you have been applying level one methodology to the market.
Level two methodology consists of buying a coin, with the sole intent of forcing outsiders into losing. This methodology is adopted mostly by trading factions and alliances, who band together in order to influence the happenings across the entire market – for their own benefit. These types of participants know that it is easier to lure someone into a losing position, than it is to sit around all day and wait to ‘win’ – they understand the perils of the commonly held wisdom in this market (i.e. you should only buy high volume coins, never buy a coin with no buy support etc) so they use this as a tool to bait unsophisticated traders into the darkest corners of the market – where they will be violently assaulted and relieved of their wealth.
The most remarkable thing about the Level two approach is, despite the great number of losses they suffer, outsiders will keep on taking the bait – because that is what they’re trained to do. Outsiders have been conditioned into perceiving the professionals buy signal – as a sell signal… and the professionals sell signal – as a buy signal. This is what makes lone traders utterly simple to exploit for profit
The traders who are successful in this market aren’t the ones who spend the entire day sitting in front of the screen trying to catch quick 10% profits from coins that are selling at severely marked up rates.
Unskilled traders tend to trade too much. They don’t pick their spots selectively enough. When they see the market moving, they want to be in on the action. So, they end up forcing the trade rather than waiting patiently. Patience is an important trait that many people don’t have. This desire for constant action irrespective of underlying conditions is responsible for many losses in crypto.
There are several solutions to properly defining (or creating) the behaviour of the crypto market and, once you become aware of them, trading will become like operating your own personal money machine