The mindset of a skilled player is to not only gain profits, but then to use those profits to gain even more profit. A skilled trader is well aware of the cycles that each coin in this market goes through – and it’s evident just by analysing the price charts. Therefore, skilled traders are able to take large positions in coins – knowing – that the wheels of the market are already turning.
I like your insight and appreciate the regular posts. I agree that it is almost like a business, the more i improve i realize that there is always something to buy and something to sell
so your hands are never really empty
Hey there,
the fact that you picked up on there always being "something to buy, and something to sell" shows that you have a grasp on the correct method of trading the crypto currency markets.
If you don't mind, I'm going to go a little further into that before I touch on your question
I have mentioned many times in the past that the word "trader" is not a term that is exclusive to the financial markets.
... This is a very important factor, and one that reveals how simple it is to be on the right side of the market.
You see, there are used car 'traders', luxury watch 'traders', electronics 'traders', supermarket 'traders', black market 'traders', e-commerce 'traders', retail 'traders' and wholesale 'traders'.
In each of these different fields, there is one common factor that is forever present. Do not take for granted, just like there are novice traders in our own market, there are novice traders in the Sea-Food market, the Restaurant market and every other market in existence.
However, like I previously mentioned, there is one factor that separates the successful trader from the unsuccessful trader, and this factor is the ability to track supply and demand.
For instance
Imagine waking up in the middle of winter. You may have been wanting to go into business for yourself, so you devise a scheme to accumulate money quickly. So, you begin to think to yourself, "it is freezing outside, and we are at the height of winter - I GOT IT! I'm going to go out and purchase 100 fur coats at the 'best price' i can get, so that I can sell them for a profit."
This is a losing proposition, in fact anyone thinking like this has already lost the game.
You see when dealing with commerce, there always exists a small segment of skilled traders
Yes you may wake up at the height of winter and decide to buy and sell 100 fur coats and profit from a slight margin, but who will you buy these coats from?
The most skilled players in that arena will have filled their entire warehouse with fur coats during the height of summer, when demand for thick fur coats is at it's lowest.
Therefore this skilled trader can sell 100 fur coats to you at a 5% discount and still make a 100% profit, whilst you will only be able to resell the coats at a 5% profit - if you're lucky.
This is how the game is played, you have to go counter to the typical trader.
so your hands are never really empty
sometimes it is obvious what to buy and sometimes it is not so obvious
how do you work out that part of the scenario?
Quite simply, you must grasp the fact that, regardless if there is manipulation or not - coins move in cycles. There is no such thing as a 'dead' coin until it has been removed from the exchange
In fact, if a coin is being labeled as being 'dead' yet it's market is still open for trading - without the threat of it being removed due to low volume - then it is actually being accumulated and prepped for it's next moon shot.
Again, using my above example and what you have said yourself, we are traders, dealers, distributers etc
These same titles are used to reference big retailers like Walmart for example, with that being said, I am going to present you with some images
Imagine walking into your local grocery store in the middle of the day and seeing this
What you are looking at is a bunch of empty shelves, thus - a retailers inability to sell, or produce profit. Why? Because 1. They do not have items for customers to exchange (trade) their money for, 2. they are unable to take advantage of any increase in foot fall (volume) that may occur because, at this point, they are 'out' of the game.
Clearly this ^ is the most optimal situation for a trader... why? Because 1. They have items that their customers want to exchange (trade) their money for, 2. They are able to take advantage of a surge in foot fall (volume) because, at this point, they are 'in' the game.
So, coming back to your question
The mindset of a skilled player is to not only gain profits, but then to use those profits to gain even more profit. A skilled trader is well aware of the cycles that each coin in this market goes through – and it’s evident just by analysing the price charts. Therefore, skilled traders are able to take large positions in coins – knowing – that the wheels of the market are already turning.
I like your insight and appreciate the regular posts. I agree that it is almost like a business, the more i improve i realize that there is always something to buy and something to sell
so your hands are never really empty
sometimes it is obvious what to buy and sometimes it is not so obvious
how do you work out that part of the scenario?
Yes indeed, trading is a business you are absolutely right, and yes, if you are doing it correctly, your hands must never be empty just like in the above examples.
So to buy into a coin, profit from a pump, and then to forget that coin exists would be like Walmart selling 500,000 porch benches and then failing to re-stock, they would be literally flushing money down the toilet if they did that.
This is why celebrities are ranked in terms of their popularity, because the more popular a celeb is, the wider their audience is - thus, corporations can pay celebrities a small fee (endorsement deal) to reach a 'large' audience, and then make a large profit - (this is a trade)
Popularity is also a major factor in the altcoin markets because, the most popular coins always attract the most volume.
So simply, you must expand your holdings by using your profits to produce more profits... because, if you don't have the right "stock" at the right prices, then clearly, you will never profit
In terms of knowing what to buy, and when - it is simply a case of tracking supply and demand
