In trading, especially when trading altcoins, there are three things that every trader must avoid if they would want to establish any form of consistent profitability.
1. Fear of the market
Although this is something that eliminates itself once you become more proficient in the market, fear is still something that plagues 98% of altcoin traders.
Fear acts as a blockade to any kind of progress or consistency and impedes the ability to earn large profits on any trade.
In crypto, it is easier to win than it is to lose. Yet most novice traders seem to be using strategies that are geared to pull nothing but a string of losses from the market.
It all comes down to your strategy.
If your system isn’t any good, then you will only ever lose money in the market.
Focus on finding an edge that gives you the most unfair advantage over 98% of the participants in this market. Once you have done that, you will no longer be worrying about what may go wrong, simply because you will be on the right side of the market, at all of the right times.
2. Comfort Seeking
Winning in crypto means doing the uncomfortable thing – which is referred to as “uncomfortable” because most people – the herd – will always lean toward taking the opposite approach.
For example, novice traders – the herd – will only buy a coin that is up several %, that has “good volume”, has good buy support, wasn’t premined (lol), is being promoted on twitter and is on the front page of Bittrex.
This is the complete amateurs checklist, which is why it is so easy to win. Why? Because this checklist is actually a description of the most potent elements that occur during the distribution phase (when coins are selling at severely marked up rates, after a long and sustained period of accumulation).
Guys you have to realise that Skilled Traders only get paid due to the mistakes of the herd, and the herd are – for the most part – comfort seekers.
The implication is, what may seem uncomfortable on the surface – may actually be the fastest / most simple route to profit
3. Lack of preparation
I make it a must to analyse the entire market at the start of each day, so that I can spot opportunities, keep track of developing opportunities, and cash out profit from the opportunities that I have exploited days, weeks, or months before.
You see, there are very little surprises in trading when you begin to understand how the market moves.
A coin that is breaking out today, will definitely be putting profit into a group of traders pocket because they spotted the opportunity weeks ago and accumulated their share of the pie.
So if you’re just waking up on one random Tuesday and logging into Bittrex with the hopes to “2x”, “scalp some quick profits” or “catch some waves” you are already doomed to failure, simply because the game is much more deeper than that.
Have a look at The Ultimate Buying Strategy, just to gain a deeper understanding of how simple it is to conduct this research.
You need to wait for high-conviction trades.
I am perfectly content to sit on the sidelines and do absolutely nothing until there is a trade opportunity that meets my guidelines.
Having the patience to wait for only the most logical plays greatly enhances the return/risk of individual trades and once you begin to average up, these returns will compound into exponential gains.