PUMPERS PICKS: Tip of the Week - Stop Thinking so Small

I have realised that most people in Crypto arent able to make big money trades, simply because they dont fully understand how the market works.

There are several flash in the pan coins that can be traded for 100% gains repeatedly. But, coins like that are dominated by skilled Traders who have a total grasp on what they are doing. I have said it before and will repeat: Skilled traders are only skilled because they make the majority of their money from the mistakes of unskilled traders thus, most of you who are new to trading Crypto tend to lose out unless you have a solid edge.

People come into Crypto with aspirations to trade 1 BTC up to 10 BTC, which is totally possible and is something that is relatively simple to do.

The only problem is, the majority of Novice traders are too short sighted. They covet markets that jump 200% in 24hrs, but shun Coins that only move 30, 40%.

I have said it time and time again. Trading isnt the quick-paced, over the top spectacle that you see in Hollywood films. This over dramatization of the process of buying and selling is how most novice traders approach Crypto and ultimately why they consistently fail.

You will never trade 1 BTC to 10 BTC if you only trade coins that jump 100% within 24 hrs.

In fact, if this is your strategy, then you will find yourself losing more money than you make just because of how fast these flash in the pan coins tend to move.

If you want to make a shit tonne of money trading Altcoins, then let me explain to you the benefits of taking Long-Term trades. Let me explain why it is crucial to always be aware of the bigger picture when trading altcoins.

How can you turn 1 BTC into 10 BTC within a month? Is it even possible? Of course its possible!

This is the secret: Price cycles, Price Patterns and Trends.

These are three things that every serious trader should be in tune with when playing the Crypto Markets.

Regular readers are now fully in tune with monitoring Support / Resistance levels, by looking at the order book instead of cluttering their charts with 400 useless indicators that can only track the past instead of the future. Thats what the order book is for, tracking the future. Dont be mistaken though, the past is just as important in revealing the most crucial pieces of information such as:

LONG TERM VIABILITY
What you want to see when looking at a chart is three main things. First you want to see that your coin has had multiple high percentage price hikes in the past. This is a good sign of long term viability. If you can see multiple spikes and dips, this means that there are traders who are constantly willing to buy this Coin every time the value declines which is a great indicator when youre looking to gauge market sentiment towards a Coin. As an example, were going to be looking at UROCoin

Second, you want to see that your Coin has been able to maintain a consistent level of Trading Volume throughout its entire lifespan. This is a sign of strength because, typically, people do not repeatedly throw money at something that isnt lining their pockets with cash.

If you can see that your Coin has managed to maintain a healthy level of Trading Volume, as illustrated above, over its entire lifespan, then you can rank that Coin high on the profitability scale.

Lastly, and this is probably the most important. The Charts can be used to reveal whether or not your Coin has settled into a rhythm.

A coin that has settled into a rhythm will constantly exhibit the same behaviour over and over again.
For example, if a coin has climbed 100%, dropped by -70%, then climbed 100% and dropped -70% on numerous occasions this is a behaviour makes your coin very predictable and easy to exploit for profit.

RHYTHM EXPLOITATION
Now as I mentioned above, the best way to predict where a coin is going to go price wise is to look at the behaviour that it has exhibited in the past.

Is your Coin following a rhythm?

Has it settled into a predictable pattern that can easily be exploited for continuous profit?

Looking at the example above, URO has fallen into the 30 45K range twice before exploding and shooting upwards producing staggering returns.

This is an element that is very crucial when planning your trades.

Too often people are swayed by short-term price movement, because they just dont see the bigger picture. They just dont understand that if you are approaching this market with a short-term mind frame, then you will only ever make pocket change.

The big money is made when you start to take a long term view. When you begin to look at the wider picture, short-term price movement begins to mean absolutely nothing because it is only a very small piece of a complex puzzle.

THE EXIT IS AS IMPORTANT AS THE ENTRY
So youre thinking about diving into a coin. You have assessed the order book and resistance looks low enough to facilitate a nice and profitable bull run. You have looked at the charts to gauge Price behaviour and to note the Psychologically Important Price Points. That is all great and essential to making sure that you have a high probability trade in front of you. You have now got your entry all figured out.

But, what about your exit?

Before entering in to any trade, you must already have your exit mapped out. If you look at the example above, you can see that when URO surged from 31K Satoshi to 3Million Satoshi that move unfolded over a 2 week and 3 day period. The second move from 47K Satoshi to 689K Satoshi unravelled over a 2 week and 5 day span. Again, this behaviour is very predictable.

This is crucial information.

Those that arent aware of things like this are more vulnerable and susceptible to making their buying / selling decisions based on mere +10%, -10% moves. These traders are not aware of the bigger picture.

Tip: The market is just a bunch of human beings working in unison, thus, price movement is just as predictable as human behavior. We all have habits and behavioral traits that we exhibit over and over again. So does the Crypto markets. This is what you have to be focused on. If something has happened twice before, then it will happen again. If you use this key piece of information and apply it to your own trading - you will start to really hit those high profitability trades. Short-term plays are fine and dandy - if you are 100% confident that you know what you're doing. If not, then you want to expand your horizons and begin to take advantage of the long term opportunities that exist in this market. Personally, my largest profits have come from rallies that unfolded over several days. This is a very simple way to approach the market - especially if you're looking for big wins, with low risk.

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.