18 Nov - 20 NovTotal return: 110%
Coins: OPAL, LTCD
Do more of what works and less of what doesn’t. This is unnecessary to state, but what is surprising is how many traders fail to adhere to this seemingly obvious principle. Some traders may be good at taking well thought out longer term positions, but then also take short-term trades based on whims in which they have no edge. Many traders may not even be fully aware of where they are making and losing money. One useful thing that you can do is to analyze your past trades by segmenting winners and losers. Often, such analysis will reveal patterns with certain types of trades being predominant in either the winning or losing categories. When you find that certain types of trades are making money and other types of trades are losing money then, as I advised earlier, do more of what works and less of what doesn’t.
OPALThis is an interesting coin. Whereas most coins seem to follow patterns based on High / Low price points, OPAL seems to be exhibiting rather unorthodox movement.
If you click onto the ALL chart for OPAL, you will see that if you had bought into this coin at its 24hr low on the 15th of October , you would have made an 82% gain by the 20th of October. If that doesn’t sound significant, then I’ll continue. Let's say you bought into OPAL at its 24hr low last Saturday, which was the 15th of November, you would have made a 119% profit today – the 20th of November.
Trading is a game of finding an edge and exploiting price patterns for your own benefit. The fact that we have seen almost 1:1 identical price action occur twice means that this is now a tool that can be added to your repertoire to give you an edge over the average market participant.
Sure OPAL was repeatedly bouncing between the 300 – 600 price range throughout October, that adds to the predictability of this market – but the fact that it has rallied between the 15th and 20th of both October and November makes OPAL slightly more of an interesting play than most other Coins.
Resistance is still super low... It wouldn’t hurt to keep an eye on this market.
Tip:
The cycle of accumulation and distribution is repeated endlessly and across the entire Crypto market. Some may be major moves, some minor. This is how Skilled traders repeatedly use the actions of novice traders to line their pockets with cash. The more experienced you become, the clearer it will be to you that this market is driven by two things; fear and greed. That’s it. When fear is at its highest, people sell. When prices are rallying and people become greedy, everyone buys. It’s all very simple and logical. It is often said that skilled traders win consistently because they play the game backwards... I tend to agree.LTCDPrior to Sunday’s low of 354 Sats, LTCD had never been in the 300 Satoshi price range at any point during its entire tenure on Bittrex.
Now, if LTCD was a coin that has never managed to attract any significant volume – this wouldn’t mean much. But, as most of us know, LTCD has managed to attract and maintain a steady stream of volume since mid September. Therefore the fact that, throughout this week, LTCD has been trading at a new low indicates that a larger move is in the works.
Yesterday, the price plunged even lower into the 200 range. It would have been criminal to not dip at least one toe into this lagoon of easy profit.
In this market, you need to pay attention to historical price points. In fact, you must pay attention to historical price points. This is how you; 1. Stay ahead of the curve, 2. Make easy money and 3. Tilt 90% of your activity in this market into the realm of consistent profitability.
You don’t need an assortment of smoke screens or voodoo priests to consistently win in Crypto. All you need is an ounce of common sense, a strategy and patience.
Common sense tells me that if LTCD has fallen into a brand new low – upward resistance is now an absolute myth. There is nothing in the form of a sell order blocking my path toward uncomplicated ROI – simply because no one has ever bought into LTCD at this price point = bargain, wholesale rate, high probability opportunity - guaranteed profit.
LTCD is the current PumpersPicks Coin of the Week, and I have so many alerts placed on this coin that it isn’t even funny anymore. I am maintaining both a long and short term position in LTCD. The lower it goes the better – in fact, I have a perfect analogy for you guys – especially for those who aren’t too experienced and are worried about “bag holding”... Fear not, it is in this climate that you would want to have the fattest “bag” in the land, here’s why:
Remember I said in an earlier post; Skilled traders only get paid due to the fact that unskilled traders just won’t stop making the same mistakes? I’ve also said: deciding when to get into and out of a high quality coin is as simple as understanding the difference between retail and wholesale pricing, so let’s call the current behaviour that LTCD is exhibiting the “accumulation” phase.
Before skilled traders can really go into a market and make shit tonne of money, they need to make sure that they have enough Coin – or inventory – to meet demand. Think of this as a wholesaler, about to launch a major advertising campaign for a particular product. The last thing any wholesaler would want to do is spend time, effort and money launching a campaign, only to discover that after a few days there is no more inventory. It’s a simple game of supply V demand. If demand is built then there must be supply to meet this demand.
But how do they fill their warehouses before starting a campaign? This is where accumulation comes in.
During the build up to the campaign, the price action begins to follow a typical pattern similar to what we are seeing with LTCD (and BTC btw), where the market is repeatedly moved higher and lower. This type of action is essential to “shake” sellers out of the market. Think of this like shaking fruit from a tree. The tree has to be shaken repeatedly in order for all the crop to fall. Some of the crop is more firmly attached and takes effort to release – just like in Crypto. Some holders will refuse to sell – but eventually they give up after several false draw downs generally at the point where the campaign is almost underway and when the skilled participants are ready to take the market higher with fully stocked warehouses.
This happens over and over... again and again. Time after time unskilled traders stay out of optimal markets because “there is just no volume to work with.” Or, they get shaken out because they don’t want to be left with “the bag”... this is a shame. Because all you have to do is look at the bigger picture. Be aware of your coins historical price points, ask yourself ‘what is the prevailing trend?‘ ‘what is the all time high / low of this coin?’ Only then will you be able to take advantage of these wholesale rates.
So again I repeat: My market philosophy is quite simple. Trading Crypto is not dissimilar to purchasing fine art. If you are to achieve any level of continued success, then you must buy only the best paintings, by the best artists, at the best prices. This will provide you with the easiest profits that there are to be had because there will always be wealthy traders around who look to buy only the best – thus your job is simply to get there first. Deciding when to get into and out of these high quality coins is as simple as understanding the difference between retail and wholesale pricing.
Tip:
Having the patience to wait for high expected return trades greatly enhances the return/risk of individual trades. I am perfectly content to stay on the sidelines and do absolutely nothing until there is an opportunity that meets my criteria. Placing suboptimal positions will tie up your capital that could be applied to more attractive opportunities. If conditions are not right, or the return/risk isn’t adequately favourable, don’t do anything. Be wary of taking dubious trades due to impatience. If you have a good enough edge, then you will spot opportunity where other don’t and profit greatly because of it.SIDENOTE: Most people in Crypto tend to view trades as a two-step process: a decision when (or where) to enter - and a decision when (or where) to exit. It may be better to view trading as a ‘dynamic’ process between entry and exit points – rather than a static one. Personally, I tend to take some money off the table when the market is in my favour . The basic idea is that the position size of a trade would be reduced on a profitable move upwards and then rebuilt on a subsequent correction – putting me in a stronger position over and over again. Any time I have pulled some money from the table, and the market retraced back to my original entry point - I generate a profit that otherwise would not have been achieved. 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.