01 Dec - 11 DecTotal return: 162%
Coins: LTCD
You have to wait for optimal trading opportunities and resist the natural urge to trade more frequently. You must be willing to do nothing, absolutely nothing, until there is something to do. Personally, I just wait until there is money lying in the corner and all I have to do is to go over there and pick it up. In other words, until a trade is so obvious that it’s like picking money up off the floor – do nothing! Waiting for these ideal opportunities requires the patience to allow alot of non-optimal trades to pass by without participation. The message is: by avoiding non optimal trades, you will be able to increase your cumulative return tremendously – thus patience makes all the difference between a skilled and unskilled trader.
LTCDTo make serious money, there are several important factors that must be worked into your strategy.
Pattern exploitation, Market timing and Price Behaviour form the linchpin of the most basic – but successful – trading strategy.
However, something I have noticed about novice traders is that they are weak minded. They don’t research the price history of the coins they trade – thus the foundation of their entire strategy is weak... Also, they are weak handed which is detrimental to their overall profitability.
Novice traders seem to believe that what unfolds in the market within the short space of 24 hours is all that matters. These short-sighted traders are under the impression that holding a position in a coin for longer than one hour is a sin – they even refer to this as “bagholding”. This is why they will forever be novice traders, and will never make serious money.
Novice traders have a misguided view on how this market actually works, so they tend to over-trade. They take pride in the fact that they execute several trades a day, but make absolutely no money in the process.
This is the opposite of proper trading etiquette.
A skilled trader will execute roughly 20 – 30 completed trades in a month and make 10 times more money than a novice trader who executes 20 – 30 completed trades within one or two days.
That is efficiency, and comes down to how well thought out your strategy is.
Let’s take this LTCD trade for example. LTCD has been a recurring PumpersPick for weeks now. I spoke about the LTCD accumulation cycle
here and
here.
With that being said I must direct a question toward the novices.
How comfortable would you be taking a position in a coin that is trading with very low volume, has alarmingly low buy support, is on the 5th page of Bittrex and isn’t the ‘talk of the town’?
Better question..
How comfortable would you feel being told to build a substantial position in this coin, and then to hold indefinitely – even if it means holding for a month straight?
You see, this is trading... This is how things work!
You can’t force an opinion on a market, the market will move when it is ready to move. There is no point saying to yourself “if this coin doesn’t move in two days, I’m selling”... That is an attempt to force an opinion on the market, which never ends well.
Being a skilled trader means:
1. Spotting high probability opportunities
2. Taking advantage of accumulation cycles
3. Having PATIENCE
4. Selling during the distribution cycle
Take this LTCD trade for example
The all-time high for LTCD is 2997 Satoshi, which occurred on September the 12th. On November the 22nd the price hit a low of 102 Satoshi – which is a -96% decline in value. After hitting this low of 102 Sats, a rally erupted as the price surged to 333 Satoshi – a +226% gain. The total volume for this rally was 62 BTC, which is an indication that demand is sky high within the 100 – 300 Satoshi range.
This has some important implications.
You see yesterday, 11th Dec, the price surged from 175 Satoshi to 455 Satoshi – that is a 160% increase in value.
This spells out the accumulation range for this coin.
100 Satoshi to 455 Satoshi... Which is a clear indication that a much larger move is in the works.
Like I said before, I have several price alerts on LTCD – every time it falls into the 100 – 200 Satoshi region, I want to be adding some inventory to my warehouse.. for obvious reasons.
LTCD is a market that is allowing a lot of people to literally mint Bitcoins as and when they please. Definitely one to keep an eye on.
Tip:
Unskilled traders tend to trade too much. They don’t pick their spots selectively enough. When they see the market moving, they want to be in on the action. So, they end up forcing the trade rather than waiting patiently. Patience is an important trait that many people don’t have. This desire for constant action irrespective of underlying conditions is responsible for many losses in crypto. You need to have the patience to wait for real opportunities and resist the temptation to trade all the time. Don’t spend all of your time in front of the screen watching prices move. The dangers of this are twofold; it can lead to overtrading, and it is likely to increase the chance of prematurely liquidating good positions on insignificant adverse price movement.SIDENOTE: You want to eliminate as many poor-percentage and high risk trades from your repertoire as possible. Once you have done this, you will see a dramatic boost in your overall profitability. Trading less and taking only the best-percentage trades are such an important part of pulling consistent wins. Ask yourself before each trade, “why am I taking this trade?” If you don’t have an answer – or can’t justify the answer, then skip the trade. To develop the mentality needed to win in Crypto, you must develop a high probability strategy. It is as simple as that. You must have the discipline to sit and wait for only the most optimal trades where all the factors of a bull run are lined up and painfully obvious. Only then should you be putting on a trade. Note: BTC is a buy right now. Pay attention to the price and execute your buys at the low points. Oct - Dec will be very interesting.
Twtter: @Pumper_Ryan follow for daily picks, and updates.