16 Oct - 17 OctTotal return: 291%
Coins: ROS, CCN
In my opinion, a large segment of people should never trade. Although I hesitate to use gambling as an example, I believe it provides a close analogy. People who are wise and diligent gamblers would probably also be wise and diligent traders, because they have a somewhat detached view of the nature of money. On the other hand, those that get caught up in the excitement of the amount of the wager, whether it’s gambling or trading, are likely to be destabilized by losses – thus, terrible participants of the market. These traders will lean more towards ‘wishing and hoping’. Instead of getting into trades they think will work, they always end up getting into trades that they ‘hope’ will work.
ROSSpurred on by the announcement of their Android Staking Wallet, ROS sprang upwards from obscurity and rocketed into Orbit providing excessive gains in the process.
Wherever there is tenacious volume and an overbearing stench of easy profits...I’m never too far away.
Having been alerted to movement, I noticed a distinct lack of sell walls. All of the sell orders were disturbingly insignificant in size. So disturbing in fact, that I had to take advantage.
Another potent factor that forced me into putting on this trade, was the fact that trading volume had sprung upwards above what had been the norm for the day – indicating that I wasn’t the only one who realised that there was easy money to be had, reinforcing my decision to put on a market buy and make the most of this momentum.
Trades like this are everywhere. Sure, there is nothing at all special about ROS coin (or 98% of the other alts) however, this doesn’t mean that one should ignore brilliant technical factors.
I always stress to members that market sentiment and fundamentals (news, features, updates) are not even half as important as technical factors – volume, resistance, momentum.
As I’ve said in a previous post; there are hoards of traders who’s only insight into these markets are the charts and orderbooks . They do not use some cluttered ANN thread as their buy / sell indicator. What gets them into a trade is simply the probability of exiting with a profit. Nothing more, or less.
The only way to gauge probability in Crypto – and all of the more established financial markets – is to assess the technicals. Good volume? Limited resistance? Buy support (not important as buy support is manipulated almost 98.99% of the time.. Never the less, a plus. Since this is how novice traders make their buying decisions)?
Analysing these technical elements of a market will not only see you through a war, but will ensure that you leave the battlefield with a pocket full of profit.
Tip:
There are five basic steps towards becoming consistently profitable in the Crypto markets. First, focus on trading vehicles, strategies, and time horizons that suit your personality. Second, identify non-random price behaviour. Third, absolutely convince yourself that what you have found is statistically valid. Fourth, set up your trading rules. Fifth, follow them.CCNCCN was added to Poloniex this morning, which I wasn’t aware was going to happen. Never the less, my position was sold before the announcement due to how I had arranged my orders when I got into the market. (The value of a coin that is already active on Bittrex and gets added to another exchange, tends to plummet)
With all of the hoopla surrounding Cannabis related coins – this run was sparked by nothing more than irrationality and really exposes the true foolishness of the participants in this market. Never the less, I bought in.
You see it doesn’t matter ‘why’ a coin is rallying.
It doesn’t matter if a rally is the result of some fad born out of the success of another coin with similar branding.
All that matters is the rally, and what you’re going to do in response to it.
Because, just as sure as there are countless traders who are sitting on the sidelines as these marijuana coins are taking off because they are “too smart to buy into a false market”... there are scores of traders who crept into each of these markets like thieves in the night only to make off with bags full of bitcoins as their positions metamorphosized into profit.
This particular trade was as simple as 1. Find marijuana coin, 2. Assess market, 3. Place order.
Why I went with CCN in particular was because I couldn’t see a major move on the charts – and due to the marijuana coin trend – I knew a move had to occur. So I set up my price alerts and conditional buy orders (I used this method of entry because, this was more of a speculative play than anything else – but if the market did move, I knew I wanted to be in because it would be a profitable run).
As soon as my position became active, I placed my sell orders immediately and some price alerts to bring my attention to any change in trend – at which point I would have readjusted my orders.
Overall a profitable move. Executed almost hands free due to the brilliance of conditional orders.
Tip:
You don’t have to get in or out of a position all at once. I tend to scale into and out of virtually all of my trades. One sensible piece of advice that I am constantly giving to members is this: Avoid the temptation of always wanting to be completely right. For example, let’s say you become conviced that a particular coin is a buy, but prices have already had a sizeable run upwards. In many instances, if the trade is really good, by waiting for a significant reaction before putting on the entire position you open yourself up to missing the move completely. However, by adopting a scale-in plan – putting on part of your intended total position at the market and the remainder on a scale-down basis – you assure that you will at least have a partial position if the market keeps going, without the excessive risk that would be implied by putting on the entire position after a large, uninterrupted advance.Avoid the temptation of wanting to be completely right by shunning all or nothing decisions and instead scaling in and scaling out of positions.
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.