You have to be intelligent enough to realise when a major price move still has distance to travel.
Just this knowledge alone will allow you to make the leap from being a mere subject of this market, to being a major player.
But, if you’re content with doing nothing other than jumping into one position and then quickly exiting and getting into yet another position – all whilst cashing in small profits, or major losses along the way, then you will forever be a non-factor in crypto. Your very existence in this market will revolve around serving others, instead of serving yourself by claiming your own portion of profit pie.
You see, there is so much money being made around you. People are using altcoins to conjure up hundreds of bitcoins out of thin air, and this is no exaggeration – just look at the charts. These skilled traders are plundering the altcoin market for “free bitcoins” and then taking these coins into the BTC/FIAT market, slapping a huge pile of leverage on the table and then cashing out exorbitant amounts of fiat.
Literally, vast amounts of wealth is being generated right under your nose!
The altcoin market is perhaps the world’s greatest kept secret at this point in time, because there’s not one other market in existence where the average Joe can go from the humdrum life of having to scrape money together just to live, to tearing down mountains of profit in very little time and with little effort … just the ability to ‘out think’ the common trader
Once you realise that a financial market is composed of nothing other than a series of actions and reactions, your performance in the altcoin market will transform.
Simply put, trading is a mind game. Just like chess… dots and boxes and even connect four.
Your one objective is to out manoeuvre the person on the opposite side of the trade. Therefore, in trading, the skill is in one’s ability to out-think his opponent.
So clearly “buying with the pack” is an option that can immediately be thrown out the window because, “if everyone is thinking the same thing, then someone ISN’T thinking.” … Or perhaps, someone else is doing the thinking for them?
Trading is a battle of the wits, and there is a lot to be said about a person who is buying today what another person bought cheaply several weeks ago.
At PumpersPicks we are advocates of simple market psychology.. the simple acknowledgement of the fact that prices move upwards or downwards when “the herd” is in a state of reaction. So in order to out-perform the herd and “get there first” we endeavour to employ strategies that exploit this innate nature of human beings to “react” instead of “act.”
Take for instance your own personal lives.
We all have a friend, or family member, who is of a totally ‘reactive’ nature.
They may be quick tempered, which allows us to “know which buttons to push” in order to illicit any response that we desire… They may be people-pleasers, which renders them as “push-overs” that we can endlessly exploit for our own personal gain – with love of course. But it is their ‘reactive’ nature that makes the behaviour of these individuals entirely predictable.
The crypto markets are exactly the same.
You see, the majority of human beings are ‘reactive’ by nature – therefore, the majority of participants of this very market are reactive by nature.
So getting ahead in crypto, is as simple as acknowledging this one fact: The market is composed of nothing other than a series of actions and reactions.
Those who set an hour aside on a daily basis, just to surf the market and spot opportunities before the common trader, are in a state of ‘action.’ They are taking matters into their own hands by straying from the herd to uncover the true rewards of the market. They are making it their duty to “get there first!”
Then, once they are positioned in their chosen coin. The market gets to work… Day after day trading volume surges through the veins of the market, causing the value of the coin to lift ever so slightly. Then… with the passing of several weeks and after the price has lifted several hundred percent, the herd finally begins to sniff around.
…at this point, the herd has started to ‘react’ to the increased price of this coin that skilled traders have already purchased weeks ago… but, members of the herd do not think, they simply react… and so they buy, causing the coins price to surge upwards past any reasonable level of value, which of cause leads to more profit for the skilled few.
After buying, members of the herd will begin to communicate with each other… “this coin is going to the moon..” “whales have started to buy.”
Then, the inevitable occurs. Those skilled traders who took ‘action’ and bought weeks/months ago begin to cash in their well deserved gains… and, just like that, the price of the coin tumbles into the deep and dark abyss.
As always, the herd are poised to ‘react’ to this price action… but this time, in the form of forum posts and twitter spam. “I told you all to get out, this was just another scam and I saw it coming from a mile away!”…. “when will we learn, devs are not to be trusted. SCAM!”… “thank you for dumping into my buy wall, see you tomorrow at x5 profit”.
Time and time again, this script plays out. But, those with a little intelligence see this for what it is: a goldmine.
You see, people don’t lose in crypto because “the market is rigged.” They lose because they don’t think.
They float around the market like brainless drones that are programmed only to respond to specific criteria – only, this is not for their own benefit… but rather for the benefit of skilled traders and market manipulators that have chosen to be masters of the market, instead of mere subjects.
Each and every individual has opportunity to succeed beyond known measure in the altcoin market, however – if you aren’t making it your duty to out-think, out-smart and out-manoeuvre the person on the other side of your trades, then you are committing to living the unproductive and restrained life of a reactive trader
So what is reaction? Lack of control? Submission to the will of others?
Traders who are prone to reaction, are allowing themselves to be controlled by the person on the opposing end of their trades.
Therefore, if you analyse your trade and find yourself to have initiated that trade in a ‘reactive’ manner, then it is a certainty that the trade will be a losing one.
You have to step away from the herd if you hope to achieve continued success in crypto.
The market wants to put money into your pocket… in fact, the market is custom built to put money into your pocket – but only if you allow it to do so.
The skilled traders in the altcoin market are only “skilled” because they seek out opportunities in this market before this information becomes available to the common trader. They know which coins to buy, and which coins to avoid, whereas unskilled members of the herd are like dancers with two left feet, quivering and stumbling their way through the market and falling into each and every trap that has been laid out for them.
You have to be smart enough to understand that every last penny that you have lost in this market only contributed to someone else’s profit.
By continuing to trade this market like an amateur, all you are doing is enriching other people who are ten times more efficient than you are.
Before you open your next trade, just ask yourself: are you taking action, or are you being reactive?
This is a whole series on skilled trading and altcoin manipulation analysis and crypto market cycles and how to get in tune with them.
So check out my profile for more and if you like it make sure to follow me - Ryan