As Bitcoin slowly climbs its way back up the charts, the value of most altcoins will also increase. Inexperienced Day Traders will try to squeeze as much as they can out of this price action, deceiving themselves into thinking they are making great profits. But when Bitcoin goes parabolic they will be in for a rude awakening, they will be left behind. At that point, they will have to buy back in at much higher prices. Holders will end up making 10 to 100 times more than these Day traders. And just so you know, Day traders typically lose about 50% of the time on average, or more. So at the end of the year, their profits will likely be even lower than they thought compared to what they could have had if they had held.
Weird, wasn't I arguing with you before? Here we go again. Firstly, day traders never make any real money. Hodlers and swing traders agree on this, 1-3% on a "good day" is a joke in comparison to potential profits swinging or hodling. Secondly, don't presume SWING traders don't hold long-term positions. It's common to have a 50-50 portfollio split on long and swing positions (long would always be profit though, obviously!). Any good swing traders have a split even if its 60-40 or 70-30. So when you say traders will "miss out", then you're wrong. When you say they will have to buy back in at much higher prices, they won't. Swing traders buy the dip (red), not the rally (green), so they won't be forced into any ridiculous buying situations. They make money because they sell to those who fomo in, not because they are fomoing in themselves. Don't be fooled.
Experienced traders will be scalping the recovery, as the long-term technicals look awful. That's just pure and simple mathematics, not a conspiracy theory. I'm not trading anymore, at least not until I see some long-term change to a bull market (probably around $4.5k to $2.5k), as well as price confirmation, but any swing traders profiting from this recovery are smart, as the odds are the price long-term is going to go much lower. If you want to fomo into the rallies be my guest, but don't go crying and moaning about the result when you get burnt. If you want to ladder into long-term positions then be smart about it, always put your final ladders lower than the price you expect it to go, increasing in position size as the price drops. Too many people "laddered" into high prices and are feeling the pain, don't make this mistake and be another resentful crypto investor, it's simply not worth it.
For example, if you think BTC will only go to $4k, ladder buy orders down to $2k. If you think the floor is at $6k, ladder positions to $3k. You get the idea. Don't think you are smarter than the market, you're not. When the whales want the price to recover it will, but it won't be from individual/retail buying or fundamentals either, it never has been and never will be. Best of luck to everyone out there!
Buy red sell green. HODL profit and grab popcorn