Hello Steemians!

Remember Dennis Rodman?
Yea, the NBA player that played in the Pistons, Bulls, Spurs... and many other teams..

Well, I made 18.7% in just 8 hours a few days ago thanks to him!

June 13th, I went in to my trading account and did my usual sifting - Which currencies are rocking the markets right now..

I noticed a coin going up like crazy. A coin I've never paid any attention to: PotCoin.
What is going on here?

A quick search got me to this video:

Apparently Dennis Rodman is promoting PotCoin and they sent him to North Korea.. He went on the news wearing a Potcoin Shirt and a cap so the boost was inevitable..

Now, before we move forward let's clarify one thing:

I don't like Dennis Rodman, I don't like North Korea, and I don't like Pot.... But... I like a good trade.. :-)

So I jumped right in and and bought some Potcoin when it was 5650 (It's actually 0.00005650BTC but it's simpler to just forget the zeros..).

8 hours later I sold it at 6707 after it already reached 8035.. So in total I made 18.7% profit in 8 hours:

Now, I know that some might say.. "He is just a speculator who bought because of the hype..."
The truth is I can't blame them as there were many speculators that day. That's what made Potcoin go up like crazy.
But.. I will now show you when and why I entered and exited the trade so you will see the difference between a speculator and a trader.

Take a look at the following image:

This is the chart of Potcoin for that time frame. A speculator would just buy and hope for the best. A trader takes the charts and analyzes it as it tells us a story.

Chapter 1 - Is It A Trend?

In the bottom left you see a spike. That was the initial hype. You then see some people sold causing the price to go down, but then it started rising again. This is what a trader is looking for.

If this is a trend and not just a spike the price should break the last high which is now called the resistance line. You can clearly see how for about 2.5 hours (5 candles, each one 30 mins) the price hovered around the last highs, until it broke that price line. That's where I bought.

Chapter 2 - Should I Hold It?

Now that i'm in, the question is - What's next?
So I waited for it to go up a little and after it did it started going back down again. This is completely normal in a trend. The thing to look out for now is will it break the support line?
Did you notice that the same price line that held the coin back from going up before is now what's holding it from going down? This is common that a resistance line becomes a support line after it's broken, and vice versa.
So, Potcoin past the test and the trend was real.

Chapter 3 - How Long Will It Last?

Ok, so I'm on to something here but what does the future hold?
Now this is where many traders fall... When to exit.

A normal up trend normally does not have more than 3-4 peaks. Especially when there is nothing solid behind it. I mean.. Dennis Rodman going to north Korea with the PotCoin shirt is great and all.. but it's not enough to make PotCoin the next Bitcoin.
So realistically, as a trader there is no reason to hold it for a long time. This is a short term trade.

At the third peak I was up 42% - AMAZING!

And this is where you start hearing midgets on both shoulders whispering in your ears:

VS

So what do you do?
In this case I went in planning on making 10%. This is a realistic standard rate I decided on when I started trading Cryptos. It's not hard to get, and if you are consistent about it you will make a lot of money in no time..
Anything more than 10% on a trade is a bonus. So since I was up 42% I was willing to risk the bonus for the chance of making more. The third spike was sharp and strong, so it looked good. However, it then reversed just as quickly so I realized it was probably the last attempt and PotCoin was losing steam.. When I saw it was testing the support line I exited the trade at 18.7% profit.

And as you can clearly see it ended up losing all it's gains shortly after..

So to sum it up:

1. Look for a coin that has abnormal activity.

2. Analyze the chart for an entry opportunity.

3. Enter for a short term trade.

4. Exit in profit when you see the trend is weakening.

I hope you enjoyed this post. If you did I would appreciate if you can upvote, resteem, and follow me so I'll be able to share more useful information on how to make a lot of money trading Crypto currencies.
And of course if you have any comments I'll be happy to see them.

Till next time,
Crypto Trader