02 Nov - 03 NovTotal return: 123%
Coins: URO, CANN, SDC
Don’t make trading decisions based on where you bought (or sold) a coin. The market doesn’t care where you entered your position. The relevant question is: What would you do if you were not in the market? A common error novice traders make when they realize they are in a bad trade is to commit to getting out, but only after the market returns to their entry level – that’s the whole "I will get out when I’m even” thing. The linking of liquidation to entry level is one of the major causes of turning small losses into large ones. Why is getting out even so important? It is merely a matter of ego. If you can get out at even, you say, “I wasn’t wrong, I didn’t make a mistake.” And, ironically, that need to not be wrong is the sole reason why most novice traders lose money in crypto.
UROURO has been in a high volume down trend since last week. Making profits very easy to come by. In previous posts, I have made it a point to stress that each time a coin dips – sell resistance also drops, making it very easy for the coin to bounce upward in price.
Due to this down trend, this has happened numerous times.
When you see that a coin is exhibiting this kind of volatile behaviour, you will benefit immensely by putting price alerts on to notify you each time it dips to a new low. In this type of climate, new low = huge rebound = profit.
I tend not to get stressed over not getting into a coin at the absolute low, because that isn’t what trading is about. Trading is about taking advantage of high probability opportunities. And I knew, due to the price action, that this coin would bounce upward several levels above my entry point. Plus, as the price dipped lower and lower – sell resistance began to dissipate which confirmed by decision to get in.
Eventually, 15BTC worth of buy orders got sold into which helped to boost the 24hr trading volume – making URO look like a solid bet to traders who may have been unsure about getting in.
Tip:
The best thing anyone can do if they are new to trading Altcoins is to learn how trend patterns work. Trading these trends for a while will teach a new trader the principle of letting profits run and cutting losses short. If you adjust your strategy in such a way that you take advantage of these recurring price patterns, even temporarily, it will severely increase your odds of being extraordinarily successful in Crypto.CANNCANN slumped into a down trend at the start of the weekend. There were alot of generously sized orders on the buy side, which indicated that there were a bunch of other traders who were looking to take advantage of this dip. So I decide to join the fun.
Initially I presumed that CANN could bounce higher than it actually did, but the price action wasn’t consistent with what I would have expected to see.
After a staggered lift upward, traders began exiting via the buy side. Which doesn’t usually happen so early into a move.
Due to this irregular activity, I followed suit and locked in some profit.
CANN is still looking very good, and has an amazing team behind it. Additionally, the sell resistance is still unusually low. So I’m still expecting a move to occur.
Tip:
In Crypto you have to be flexible. It is important not to get attached to a trading idea and to always be willing to get out of a trade if the price action is inconsistent with the original assessment that got you into the trade in the first place. The most advanced traders are those that are able to change their mind in an instant. If you can’t do that, you will get caught in a position and be wiped out. Those that are skilled have the flexibility to completely change their opinions if necessitated by the facts. You cant just ‘hope’ that you are right, there will be times where you will need to re-evaluate your positions to asses why they may be wrong. That is the mark of a great trader.SDCMomentum play here. There are three factors that you should be assessing when looking to spot market momentum (movement).
Create an account on Cryptrader and make use of the price alerts tool. With this trade, I had price alerts placed to bring my attention to any significant upward or downward movement.
Once price action triggers my alerts, I want to see that 1. There are a string of past trades that have been executed by the minute, so I asses the trade history. 2. I want to see that there is more volume coming into the market than has been the norm for the last half hr. 3. I want to see that there is no sell resistance (sell walls) blocking my path to profit.
This is how you asses momentum. When all of these factors are aligned in your favour then that is when you should be looking to buy in via the sell side (place your sell orders as quickly as possible) – then it’s just a simple case of letting the Market momentum pull more traders in (who will also buy through orders on the sell side).. eventually your sell orders will be scooped up providing you with a healthy return.
Tip:
Most people make the mistake of thinking that there is a 50 / 50 chance on any trade. They don’t think that there is anything more to it than that. They don’t watch the factors that affect the market, so they completely miss the glaringly obvious fact that the odds on any trade can always be tilted heavily in your favour – or heavily against you – thus, trading is a game of spotting and taking advantage of high probability trades.SIDENOTE: Look at each market (coin) as a venue - a venue that has a max capacity. In our case the venues capacity, instead of human beings, can only be filled with BTC (trading volume). So, If a coin has already attracted a tremendous amount of volume, volume that is magnitudes above what the logical part of your brain would deem average levels – then that particular market is filled (or close to being filled) to its maximum capacity. Thus the only thing left to happen is for the BTC to come back out of that market – causing the value to plummet. 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.