20 Sep - 21 SepTotal return: 101%
Coins: LTCD, LXC
LTCDIf you’re a regular reader and are familiar with my analysis, then you’re now aware just how important tracking price points is. Especially in Crypto. When I first started, my entire strategy consisted around spotting these types of consistencies in the market, and exploiting them for ‘easy’ profit.
LTCD started off the week at 2K+, by mid week was down to 1k (bouncing up and down several times allowing myself and others to double up, more than once.) Today, LTCD breached sub 1K levels – again, bouncing up and down allowing for small, but cheerful, profits.
Like I said, this was the strategy that I used when I first got into trading alts... One of the most simple strategies for establishing a certain standard of consistency.
Tip:
I don’t set price targets. I get out when the market action tells me it’s time to get out, rather than based on any consideration of how far the price has gone. You have to take what the market gives you. If it doesn’t give you very much, you can’t hesitate to get out with a small profit.LXCLXC shifted into an uptrend on Thursday and continued to rally throughout Friday and Saturday.
If you arrive late to a rally and find that the market is up 50%+, which of the following thoughts goes through your mind:
a) Wow this coin is up 50%?... TO THE MOON! (Places order)
b) Damn, I can’t believe it! I have been watching this market all day and I missed the rally! (moves on to next coin)
c) What goes up, must come down. Plenty volume in the market, so when the price does drop the market will correct itself.. sounds like a risk free trade. (places low ball order)
If you answered
(a), then I hope that now you realise why every time you buy into a market, the price falls into the abyss and you lose money. This, essentially, is buying in “at the top”. The implication is that when a market has gone up 50%+ it is a ‘seller’s market’ not a buyer’s market.
Did you answer
(b)? If so, I’ll explain why this is a terrible answer and why this attitude is the root cause of you not making ‘consistent’ profit from crypto. Now it is important to distinguish between respect for the market and fear of the market. While it’s essential to respect the market to assure preservation of capital, you can’t win if you’re fearful of losing. Fear will keep you from making correct decisions. You have to realise that if you are in a high momentum market then there is always opportunity to profit.
If you went with
(c), then I’m sure you don’t need me to explain why you’re a Crypto God because you’re most probably busy pulling bags full of profit from a selection of Coins right now. This is everything. Buying a coin that has dipped -50% or more during a rally is the closest you will ever get to a risk free trade in crypto. Just ask yourself... How many times have you bought into a market, seen the price drop so low that you think all hope is lost – only to see the price spring back upwards minutes later. What if I told you that there are literally hundreds of traders that make consistent income from using just this strategy alone? These guys will sit back as calm as ever during a rally, just waiting for that drop in price to occur. And, as soon as it does, they are all over it.
This is how I played this LXC trade, and I challenge everyone to attempt this strategy for a week straight. You will literally be disgusted at just how easy it is to win.
Tip:
The essential element to being an efficient participant in this market is having a core philosophy. Without a core philosophy, you’re not going to be able to hold onto your positions or stick with your trading plan during difficult times. You must fully understand, strongly believe in and be totally committed to your trading philosophy. In order to achieve that mental state, you have to do a great deal of independent research. A trading philosophy is something that cannot be transferred from one person to another, it’s something that you have to aquire yourself through time and effort. But once you do, you will begin to amaze yourself.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.