21 Nov - 22 Nov
Total return: 167%
Coins: LTCD
Becoming more effective in the Crypto markets means having the ability to correctly distinguish between high and low probability situations. The best way to do this is to always be aware of what the market is doing in its different timeframes. By using a combination of timeframes, you can isolate those trades that have more potential to deliver high percentage returns. Also, having a reason for making every trade and planning your trades thoroughly will assist you in identifying which trades may not be worth the risk that they represent.
LTCD
LTCD has been an excessively rewarding market this week. It has provided an abundance of openings for traders to dive in and out with x2 profit each time.
However, I must make reference to the bigger picture here.
Sure, LTCD has provided enough leeway for those who enjoy fast paced, short-term, momentum based trading but as I have explained in a previous post, this up and down price action that we are seeing is only one small piece to a much larger and complex puzzle.
Every time LTCD dips into lower price levels there is always a pool of liquidity, in the form of buy orders, to absorb the impact of the plunge. With every descent into lower price levels, there is more BTC being brought into the market than there is being pulled out.
In addition to this, sell resistance has remained low within the 100 Satoshi to 300 Satoshi range which indicates that it is only a matter of time before the floodgates give way and the price really begins to surge upwards back into the 1000 Satoshi region.
Remember my previous post in which I described the process of accumulation? Well, with each plunge, skilled traders are strengthening their position and stocking up their warehouses in preparation for a much larger move.
But dont be fooled.
Accumulation doesnt last forever.
Once the jittery novice traders have been shaken out of the market and there is no one left to fill those strategically placed lowball buy orders you will see a hoard of traders pulling their low bids and entering the market via the sell side, pushing the price higher which will mark the end of accumulation and the commencing of the Distribution phase.
Distribution is the exact opposite of Accumulation.
During the accumulation phase, skilled traders are filling their warehouses. Once everyone has taken their share of cheap coin directly from the hands of jittery novices who have been shaken out of the market this same fear is played upon to push the price higher.
Whilst the key emotional driver in shaking the trees during the accumulation phase was fear, the fear of a loss the key driver that is used once distribution begins is also fear, but this time fear of missing out on a good trade, also known as market euphoria.
So what is the typical pattern for the distribution phase?
First, the Coin breaks out from the end of accumulation, moving higher steadily, with average volume. There is no rush as hoards of Skilled traders bought in at wholesale prices and will look to maximise profits by building momentum slowly as the bulk of the promotion will be done at the top of the trend, and at the highest price possible.
The move away from the accumulation phase is now accompanied by good news stories and updates, changing sentiment from the bad news stories which accompanied the falling market.
As the price begins to stagger upwards, this staggered price action turns into a smooth ascent as people begin to spot the opportunity and buy in forcing the price even higher.
Then, those who sat on the fence begin to realise what is happening, so they panic buy and also shove prices even higher.
As the bullish momentum gathers pace until the target price is reached, it is at this point that the literal distribution begins, with the skilled traders starting to clear their warehouses as eager traders jump in, fearful of missing out. The good news stream and promotion is now constant and all encompassing as the price continues to climb.
Novice traders are usually the last to catch onto what is going on they finally get to grips with things once the market is inching very close to the top of its bull run. These guys have seen the market move higher slowly, then gather momentum, before rising fast, and it is at this point that they buy, fearful of missing out on the chance of quick profit all whilst the skilled traders bought weeks before during the accumulation phase when the price was sitting at a measly 100 Satoshi.
I hope now you realise just how it is that the "big money" is made in Crypto? Furthermore, I hope you realise that "big money" is being made in this fashion every week, by the minority - the skilled traders. And I have said it before. In this market, equity flows from the hands of the many into the few. This will always be the case.
This is all skilled trading boils down to. Playing on the emotions of the markets, which are driven by just two; fear and greed. Thats it. Create enough fear, and people will sell at any price. Create enough greed and people will buy at any price.
Dont be fooled into thinking that this is only happening with LTCD. It happens across the entire Crypto market BTC included. The cycle of accumulation and distribution is repeated endlessly everyday across every coin in this market.
The implication for the trader is, to win, you must be able to differentiate between accumulation and distribution only then will it be 100% clear that those who do the opposite of the herd always win.
Tip: When a certain coin is being over-promoted take advantage if you will... but, dont forget to pay attention to action that may be occurring elsewhere. This is the best time to spot accumulation and to take advantage before the rest of the market catches on... Look where others dont and always remember that when prices are rising the most skilled traders are selling (not dumping selling) those sell orders that everyone runs through during a rally were placed by traders who were two steps ahead of the game. These tradeRs accumulate while everyone elses focus is on the latest big thing... Monitor all the markets, and you will begin to spot opportunities before the average trader.
SIDENOTE: Most people in Crypto tend to view trades as a two-step process: a decision when (or where) to enter - and a decision when (or where) to exit. It may be better to view trading as a dynamic process between entry and exit points rather than a static one. Personally, I tend to take some money off the table when the market is in my favour . The basic idea is that the position size of a trade would be reduced on a profitable move upwards and then rebuilt on a subsequent correction putting me in a stronger position over and over again. Any time I have pulled some money from the table, and the market retraced back to my original entry point - I generate a profit that otherwise would not have been achieved.
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.
Total return: 167%
Coins: LTCD
Becoming more effective in the Crypto markets means having the ability to correctly distinguish between high and low probability situations. The best way to do this is to always be aware of what the market is doing in its different timeframes. By using a combination of timeframes, you can isolate those trades that have more potential to deliver high percentage returns. Also, having a reason for making every trade and planning your trades thoroughly will assist you in identifying which trades may not be worth the risk that they represent.
LTCD
LTCD has been an excessively rewarding market this week. It has provided an abundance of openings for traders to dive in and out with x2 profit each time.
However, I must make reference to the bigger picture here.
Sure, LTCD has provided enough leeway for those who enjoy fast paced, short-term, momentum based trading but as I have explained in a previous post, this up and down price action that we are seeing is only one small piece to a much larger and complex puzzle.
Every time LTCD dips into lower price levels there is always a pool of liquidity, in the form of buy orders, to absorb the impact of the plunge. With every descent into lower price levels, there is more BTC being brought into the market than there is being pulled out.
In addition to this, sell resistance has remained low within the 100 Satoshi to 300 Satoshi range which indicates that it is only a matter of time before the floodgates give way and the price really begins to surge upwards back into the 1000 Satoshi region.
Remember my previous post in which I described the process of accumulation? Well, with each plunge, skilled traders are strengthening their position and stocking up their warehouses in preparation for a much larger move.
But dont be fooled.
Accumulation doesnt last forever.
Once the jittery novice traders have been shaken out of the market and there is no one left to fill those strategically placed lowball buy orders you will see a hoard of traders pulling their low bids and entering the market via the sell side, pushing the price higher which will mark the end of accumulation and the commencing of the Distribution phase.
Distribution is the exact opposite of Accumulation.
During the accumulation phase, skilled traders are filling their warehouses. Once everyone has taken their share of cheap coin directly from the hands of jittery novices who have been shaken out of the market this same fear is played upon to push the price higher.
Whilst the key emotional driver in shaking the trees during the accumulation phase was fear, the fear of a loss the key driver that is used once distribution begins is also fear, but this time fear of missing out on a good trade, also known as market euphoria.
So what is the typical pattern for the distribution phase?
First, the Coin breaks out from the end of accumulation, moving higher steadily, with average volume. There is no rush as hoards of Skilled traders bought in at wholesale prices and will look to maximise profits by building momentum slowly as the bulk of the promotion will be done at the top of the trend, and at the highest price possible.
The move away from the accumulation phase is now accompanied by good news stories and updates, changing sentiment from the bad news stories which accompanied the falling market.
As the price begins to stagger upwards, this staggered price action turns into a smooth ascent as people begin to spot the opportunity and buy in forcing the price even higher.
Then, those who sat on the fence begin to realise what is happening, so they panic buy and also shove prices even higher.
As the bullish momentum gathers pace until the target price is reached, it is at this point that the literal distribution begins, with the skilled traders starting to clear their warehouses as eager traders jump in, fearful of missing out. The good news stream and promotion is now constant and all encompassing as the price continues to climb.
Novice traders are usually the last to catch onto what is going on they finally get to grips with things once the market is inching very close to the top of its bull run. These guys have seen the market move higher slowly, then gather momentum, before rising fast, and it is at this point that they buy, fearful of missing out on the chance of quick profit all whilst the skilled traders bought weeks before during the accumulation phase when the price was sitting at a measly 100 Satoshi.
I hope now you realise just how it is that the "big money" is made in Crypto? Furthermore, I hope you realise that "big money" is being made in this fashion every week, by the minority - the skilled traders. And I have said it before. In this market, equity flows from the hands of the many into the few. This will always be the case.
This is all skilled trading boils down to. Playing on the emotions of the markets, which are driven by just two; fear and greed. Thats it. Create enough fear, and people will sell at any price. Create enough greed and people will buy at any price.
Dont be fooled into thinking that this is only happening with LTCD. It happens across the entire Crypto market BTC included. The cycle of accumulation and distribution is repeated endlessly everyday across every coin in this market.
The implication for the trader is, to win, you must be able to differentiate between accumulation and distribution only then will it be 100% clear that those who do the opposite of the herd always win.
Tip: When a certain coin is being over-promoted take advantage if you will... but, dont forget to pay attention to action that may be occurring elsewhere. This is the best time to spot accumulation and to take advantage before the rest of the market catches on... Look where others dont and always remember that when prices are rising the most skilled traders are selling (not dumping selling) those sell orders that everyone runs through during a rally were placed by traders who were two steps ahead of the game. These tradeRs accumulate while everyone elses focus is on the latest big thing... Monitor all the markets, and you will begin to spot opportunities before the average trader.
SIDENOTE: Most people in Crypto tend to view trades as a two-step process: a decision when (or where) to enter - and a decision when (or where) to exit. It may be better to view trading as a dynamic process between entry and exit points rather than a static one. Personally, I tend to take some money off the table when the market is in my favour . The basic idea is that the position size of a trade would be reduced on a profitable move upwards and then rebuilt on a subsequent correction putting me in a stronger position over and over again. Any time I have pulled some money from the table, and the market retraced back to my original entry point - I generate a profit that otherwise would not have been achieved.
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.