PM sent. Great advice so far!
Hey, thanks
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I totally get this Ryan. I think this is where I have been going wrong with my trading. What most people in crypto tend to say is "buy the dip and sell the rip" which really doesn't help at all.
I guess you are saying the same thing but explaining it in a more digestible way so that I can actually apply your method to my own way of trading.
Up until a few days ago I had been buying in when the volume was at it's highest and when buy support was at it's highest. Which i suppose is the opposite of what I am supposed to be doing
I started with cryptos last month and am only now realizing that the entire market is rigged and that the only way to truely succeed is to be a part of some larger entity which i guess is the whole "strength in numbers" concept.
thanks for these posts i shall be cramming in what i can and will hopefully be ready to join you on saturday
People are always saying cliché things like "buy low, sell high" and "do the opposite of what everyone else is doing"... But they never actually say what that thing is that everyone else is doing. Probably because they are also making the same mistakes.
Like you said, most people who are new to trading will only buy in when there is a mass of buy support and the trading volume is sky high.
That is the complete opposite of proper trading etiquette.
This is the mistake that 98.99% of crypto traders make, which is why trading altcoins is so profitable right now - because it is the only market in the world where nearly 100% of the participants have absolutely no clue as to what they are doing.
Buy support indicates that people are willing to buy into a coin - but at a lower rate. The more buy support you see, the more likely it is that prices will soon plummet.
Trading volume is a mere indication of how much money has already gone into / out of a coin. If you see excessivly high trading volume and the market has a positive +100% gain - that market is already at or inching close to it's maximum capacity.
So the only thing that can happen from that point is for the money to flow out of that market and into another coin.
This is just common sense stuff.
I'll use Announcements / Updates as an example.
Lets say Coin X is releasing some type of cool new android wallet on Oct 25th - that is your major story, and advertising tool to bring in as many traders to that market as possible.
Eventually, everyone catches wind of this revolutionary android wallet that is going to be released on the 25th. So what do they do? They go and buy a whole bunch of Coin X - sparking a rally in the process.
Then all the traders who were "too smart" to buy in just because of the pending release of some revolutionary (cloned) android wallet, they start to panic buy because they "don't want to miss the ride". This causes prices to surge further.
So, we are at the 24th and every coin pumper is promoting the hell out of Coin X and this game changing Android Wallet that is to be released in 24 hrs.
Now, it's the big day. The wallet is released.. Everyone is happy. But does the price move any further? Not at all. In fact, the price is now plummeting violently - faster than it went up.
Why?
Well duhh, the
entire market already bought
during the run up to the 25th. So on the big day, after literally the entire community had bought into Coin X - there is no one left to buy in. Thus prices begin to stall. People begin to panic - and the whole process that i just described repeats itself on the way down.
You really do have to pay attention to the common habits in crypto and do the exact opposite.
It's the only way to stay ahead