More money is lost to ignorance than anything else.
Would you go head to head against the world’s greatest chess player and expect to win, in defiance of the fact that you barely know the basics of chess? Furthermore, would you take your life savings and then bet them on the fact that you can defeat this world class player, despite never having won a single game of chess in your life?
This is exactly the kind of behaviour we see from novice traders.
Often you will find that it is the novice traders prosperity in the realm of ignorance, that forces them to make terrible decisions in the altcoin market.
Despite having an endless list of losses that they are forced to come to terms with privately, novice traders will publicly adopt an all knowing facade of expertise – which only serves them by worsening their financial performance over the long run.
I champion the notion that trading altcoins is currently one of the fastest and easiest methods of making money online, however, this is only true for the traders who have an understanding of market psychology and the mechanics behind price movement.
These skilled players understand that their success in this market boils down to two things: positioning, and duration.
Simply put, they are able to recognise which positions are the most beneficial in terms of profit, which also allows them to distinguish the optimal length of time that they’ll remain in that position. Thus, these skilled individuals generate colossal amounts of profit month in, and month out.
On the flipside of this, trading altcoins could also be one of the fastest and easiest methods of losing money online… Because, as I mentioned above, more money is lost to ignorance than anything else in crypto.
If you are attempting to trade this treacherous market, then you must understand that there is a structure to the way money flows into and then out of each and every coin. This structure never changes, and so is very simple to master.
When all is said and done, your trade history and account balance will always reveal whether you are on the right side of the market, or on the wrong side
It doesn’t take much work or digging to figure out that, provided that you have bought at the right time, the longer your position is exposed to trading volume – you’ll make more money, by default.
This single snippet of logic paints the perfect picture of the state of affairs in the crypto currency market, and any other financial market in the world.
People seem to have the misconception that a 1000% gain in value is a rarity – but, his kind of profit occurs just as regularly as 100% profits do. However, people are blind to this because they have it in their minds that they must be ‘day traders.’ This means they view themselves as short-term traders, therefore their modus operandi consists of merely attempting to slice, dice and scalp small 10% profits from multiple coins during the day – which is a strategy that has brought about more financial ruin and disharmony then you could ever imagine.
At PumpersPicks, we shun day trading completely and we have generated an endless list of 1000%+ profits as a result.
The pitfalls of ‘day trading’ are devastating. Just look at the language that is used in conjunction with this strategy… Day traders refer to themselves as “short-term” traders – yet they wonder why they never achieve ‘long-term’ consistency.
These traders are blind to the bigger picture.
They sit there in front of the screen every day, thinking that they have their finger on the pulse of the market.
They sit for hours staring into the screen, so that when they finally see a “pump” unravelling, they can instantly dive in and take advantage. Yet, the most ironic thing is, every time a pump finally does occur, these day traders are ALWAYS late to the party… ALWAYS on the back foot…. ALWAYS the last to buy in…. ALWAYS the ones that end up being “dumped on”…. ALWAYS the ones that market manipulators use and abuse for their own financial benefit.
As a day trader, you may pride yourself on the number of trades you execute…. the amount of hours you spend/waste in front of the screen… and a bunch of other illogical things but, make no mistake, you can spend 100 hours in a row in front of that very screen, but you will never be more in tune with the market than a long-term trader.
If you disagree, then just examine your own trading history.
If you are a day trader / short – term trader, than I can guarantee that when you open up your trading history, you have more losses than gains… I am sure of that, because it is physically impossible for a ‘short-term’ trader to be successful over the ‘long-term.’
I mean, the strategies are the polar opposites of each other. They differ in so many different ways that a long-term trader would probably require a brain transplant to so much as think of reverting back to the fruitless system of day trading.
These strategies are so different from one another, that a long-term trader looks at the market in a completely different way than a short term trader.
Long term players understand that the best time to buy into a coin is off the back of a major decline. They also understand that 14,000 BTC flows through the altcoin market within the space of a month – and this is the arena they are playing in… Not like the simpleton day-traders who, in their thousands, fight over a mere 500 – 900 BTC daily trading volume.
The key to making money in crypto is exposing your trades to as much trading volume as possible, this means expanding the duration of your trades.
Day traders are so illogical in that they aim to shorten the duration of their trades, PLUS increase the amount of daily trades that they execute, PLUS increase the amount of money they make. This is complete nonsense… Because within 24 hrs, you can only hope for as much as 500 – 900 BTC worth of trading volume make itself available to you – and you are battling against thousands of other traders for these scraps.
Long-term traders sit back and laugh, because they trade less, but make more money month after month after month.
They know that they are in the minority. Which literally means, they have no competition.
A long term trader will open a trade today, with all the intent to remain positioned in that trade for two months. The coin may jump in price within a day, a week or 30 days and they can cash out and take their winnings – but, the point is, their original intent is always to remain positioned in that coin over the long-term… because, by doing this they are exposing themselves to capturing a portion of the 14,000 BTC+ of monthly trading volume that pours into this very market, while day traders are constricted and limited to only working with the meagre 500 – 900 BTC worth of ‘daily’ volume
Let’s say today there are 1000 short-term traders buying and selling altcoins back and forth, and since long-term traders are in the minority, let’s that today there are 100 long-term traders who have accumulated positions
The day traders are working with the daily volume: 500 BTC
The long-term players are working with monthly volume: 14,000 BTC
Now, what we are seeing here is 1000 day traders going to war with each other over 500 BTC ($114,025.) How much money is available per person? $114,025 / 1000 = $114. This is why day traders make very little money over the long term.
Over to the long-term end of the scale.
Quite literally we have 100 long-term traders who are casting their net out into the market in order to capture a portion of the monthly trading volume of 14,000 BTC ($3,190,000.) How much money is available per person? $3,190,000 / 100 people = is $31,900
So clearly, this means that the very minute that you decide to adopt a long-term strategy, you have instantly increased your chances of success. You have widened your scope for profit, and constricted any window of failure. Ask yourself, how easy is it to mess up and lose an amount as small as $114 in comparison to $31,900?
Simply put, when you begin to expand the duration of your trades, more money instantly becomes available to you