In order for coins to be distributed, they must first be prepped. You have to remember that the main goal of trading is to buy something so cheaply that it can later be sold at such a premium that you are able to reap incredibly large profits. Some people complain about manipulation, others do all they can to spot this manipulation and profit because of it. These are two different mindsets, but it is often the skilled traders that track manipulation that enjoy consistent success.
The market is easy to read, thus profit is simple to come by.
You see, nothing can happen in this market without a trace being left behind – for everyone to see – in the order books and in the charts.
Time and time again I have mentioned just how simple it is to not only spot manipulation, but to hop on board and to profit as a result of this manipulation.
It is not about finding your favourite altcoin. It’s not about falling in love with a coin that you caught a lucky 100% profit from.
When it boils down to it, fundamentally, every single altcoin in this market is exactly the same. They have absolutely zero drastic distinctions between each other.
You see guys, whether you are able to realise it or not – the charts display one thing and one thing only: Price movement.
That’s right. Just by looking at the chart, you can see all the price moves that have occurred throughout a coins entire lifespan. Not only this, but trading volume is another record that can never be erased from the charts – thus all the answers to your questions are already laid out to you, in the most obvious manner.
If you do not understand why elements such as price movement and trading volume are important, then you really have no business attempting to trade the crypto markets.
As a trader, your job is to assess popularity – and many things factor into that.
Why is popularity important?
Just look at the retail market.
In our day to day lives, most of our decisions are made at a subconscious level – we want our decisions to be made for us and, not only that, but we want to be sure that the decision that is made is absolutely correct.
This is the reason more people buy PCs with Windows OS, than they do Macs because, virtually everyone has a windows pc thus the decision is made with the logic – if everyone else is doing it, then this must be the right thing to do.
Apple, being the creative geniuses that they are, has even capitalised from this by claiming their systems are incapable of becoming infected with viruses. Which is false. Because actually, hackers would much rather create malicious software for windows – because they have the largest market share, giving hackers a much wider reach than apple’s OS X would.
This is the reason celebrities are used to endorse products. If I was a fan of Britney Spears for instance, and she released some brand new movie, I’d probably be first in line to scoop up a few tickets.
Popularity is merely positive agreement shared by a mass of human beings.
In crypto, trading volume is the gauge for popularity.
Naturally, the more volume a coin attracts – the more popular it becomes. Especially in the eyes of novice traders who don’t have a clue about what they should really be basing their trading decisions on.
Therefore, their decision is made for them. At a subconscious level. Using popularity (herd agreement) as a gauge.
Thus, it is when trading volume is soaring through the roof that novices begin to buy.
These novices are actually providing skilled players with nearly 4X’s their money. And this is something that will always happen – it will never change.
Understanding price movement is also very important, and I will use this NKT trade as an example.
During NKT’s last rally, the price soared from 19 Satoshi to 500 Satoshi. The culmination of this rally occurred on Dec 31st, the volume was a pretty tame 29BTC.
Now, after reaching 500 Satoshi, the price fell into decline…. Before landing at 30 Satoshi on Jan 8th. That is a 94% decrease in value.
Why is that significant? Well, not only is it significant – it’s super significant!
Normally you’d expect a coin to drop anything from 70% to 90% of value after a rally before reaching the “bottom,” being accumulated, and then distributed yet again.
However, NKT dropped 94% – signifying that the absolute most that could be lost on this trade was 6%.
NKT was at the bottom, and there was an absolute absence of sell pressure – which is the most suitable climate for an exceedingly profitable round of distribution.
You see, in crypto, getting there first provides you with the ability to profit substantially. You aren’t paid to be right or wrong, you’re paid to be early.
You’re paid to exploit opportunity.
If you’re strategy is so basic that all you do is wait to catch a coin just as it is breaking out, then you will only suffer more and more losses until you have depleted your entire trading fund. Because all you’re doing is betting on the ‘continuation’ of a price move that has already occurred. Which is gambling, not trading
There is nothing to winning consistently in this market. It is all a game of skill
This isn’t checkers, this is chess. You have to think 5 moves ahead of your opponent at all times.
Tip: It is simple for a novice to describe something that he doesn’t understand as manipulation. It is even more simple for someone with impaired vision to be so far removed from the action – yet claim to see everything that is happening. You see, consistency in this market is a skill – therefore it is something that can be achieved even by the smallest trader. But it will take a shift in mentality. One thing that is for certain is, the majority of traders loses the most money in crypto. So if you think like the majority, you’re sure to lose also. To win, you have to look at the bigger picture and understand that volume drives the market, and also leaves trails behind on the charts. Anyone can exploit these patterns – if you know what you’re looking for.