You see, the belief that there is no certainty in trading is a serious error that, again, forces unskilled market participants into acting as if this is actually fact
So freaking true man this is me all over.
I have been thinking this but wasn't able to put it into tangible words......I guess it's that old "mind over matter" thing
If you think you are gambling then you will act the same exact way it makes so much sense now
All of this jumping in and then jumping back out within 5 minutes with 2% profit or 30% loss happens because people actually think that they are gambling
could you expand on this by any chance?
Well it's like you said.
I mentioned earlier that most novice, and even experienced - but unskilled traders, are under the falsehood that there are no certainties in trading. Yet they continue to trade anyway.
This batch of traders, who are the majority in the market, both consciously and subconsciously believe that trading is gambling - so they 'act as if' this is a fact.
They act as if the price of altcoins can just fall out of the sky at any given moment, (which is true if you are constantly buying into coins at the top of the market) so they manoeuvre around, from coin to coin, in the most jittery weak handed fashion... opening trades, and then closing them with high percentage losses. Opening another trade, losing confidence due to the spreading of FUD and then closing the trade with another loss only to see that same coin trading at a 200% gain several days later.
They act as if it makes sense to buy into a coin that has an alarmingly high trading volume, extensive buy support and is being excessively promoted on the various news sources this is often when skilled traders are clearing their warehouses and unloading their coins on the uninitiated.
They act as if there arent hundreds of traders who make 500% profits month after month, and so they settle for small 10% gains simply because there are no guarantees in trading, so a 10% profit is a blessing. Not the case
They act as if losses play a bigger part in trading than the actual taking of profit, so they approach the market in such an awkward, non-advantageous way... letting losses run on and on and on, gambling on the chance of the coin returning to a price that will bring them back to even. Yet they are prone to cutting and running with the smallest 2% profit.
They act as if there is no way to perceive and take advantage of a major price move before it actually occurs, so they spend all of their time betting on the continuation of moves that have already taken place, which can only ever produce more cumulative losses than gains.
You see the market is a projection of the thoughts and actions of a collection of human beings. And, because we cannot have action without thought it is clear that the action we see every day in the market is driven by thought and perception.
The majority of participants in this market believe, wholeheartedly, that trading is gambling. And so this thought process is reflected in their actions.
Skilled traders use this fact to milk the market for continuous profit.
Skilled traders intelligently buy into methodical accumulation simply because they know that when accumulation ends and prices begin to tick upwards swathes of gamblers will begin to swarm, buying through the sell orders that were intricately placed at severely marked-up levels, days before.
This is how the market works.
Even after reading this, these gamblers will click onto that Bittrex tab at the top of their screen and attempt to score a quick 5% profit.
You see, the market needs gamblers in order for the wheels of profit to turn perpetually. Unfortunately though, this profit flows into the hands of the few the small few who understand that
to win is to play the game the way its supposed to be played.