05 Nov - 06 Nov
Total return: 164%
Coins: FC2

There are three things you need to make money trading Altcoins. You need a decent fundamental story, a good trend that looks like it will carry on, and the market handling news the way you think it should. Bull markets ignore any bad news, and any good news is a reason for a further rally.

FC2


I don’t trade unless I have done all the work and really have a view. If I enter a trade, and the minute I put it on, I feel uncomfortable, I will just turn around and get right out. Also, I look at each active trade every day and ask myself the question, “Would I enter this trade today at this price?” If the answer is “no,” then the trade is gone.

Most of the trades that I do stop myself out of, I stop out because of time rather than because of a loss. If I really have a firm conviction of the trade and get strongly positioned, and then a two days later it still hasn’t moved, alarm bells start ringing in my head. I think to myself, That is a really great hypothesis you have, but the market isn’t playing ball.

You have to limit your ability to make impulsive decisions in the market. Which is why you really only want to have a position in a coin that is in a state of high momentum.

After seeing FC2 had dipped from 2561 to 1001, the next step was to gauge the probability of this market taking off.

Due to the wide spread that developed as a result of the severe drop, the price very quickly rebounded back into the pre-dump range. Which let me know that there were other participants in the market who also had intentions to play this dip for some quick returns.

The price fell to 1.4K, then popped back up to 2.2K within mere minutes – at which point I become wholly convinced that a larger move was on the horizon.

I began running some pre-trade analysis to work out how I wanted to get in. Due to the price action that I was observing it would have made sense to put in some bids from 1K and up to get in at the most advantageous price (which I did anyway just to hedge my position), but it also would have made perfect sense to scoop up some sell orders and let market momentum do the rest.

I saw that whilst there were some sell walls, these walls weren't large enough to halt the move that was beginning to unravel because, looking beyond the walls, I could see that the sell side was littered by sell orders with the most insignificant position sizes. So I assisted in tearing down some walls so that the flood gates could swing open allowing volume to flow through the market freely.

When all of the technical factors align to indicate that prices are about to breakout, market sentiment means nothing at all. A skilled trader understands that trading is a game of probability. Thus, you should only be putting your focus towards playing ONLY those markets that have the highest probability of producing a sufficient return.

Tip: I think the difference between those that succeed and those that fail is how they think about the market. Everyone is bombarded every day with price movements, crisis events, and lots of other information. You need a methodology to cut through all that information and see things as they are. Over the short-term, prices fluctuate due to emotion, but over the long term, they come back to value. The charts will reveal all the coins that have performed over the long-term. Those are the markets you should be paying attention to.

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.

So strange, this is one of the most interesting coins out there, and people are selling!!!???