How charts respond to your buy/sell orders (An Altcoin trader's story)

in #alt-coins7 years ago

Kurt Cobain once said "Just because you're paranoid doesn't mean they aren't after you."

I had this delusion that every time I put a buy/sell order, charts start to move in the opposite direction that I have anticipated. It seemed that charts are like a live organism waiting for me to take my action so they can rip me off of my money. Whenever I bought some coins at a very low price in an upward moving chart, after a very short time the up-going chart started to fall and I pulled back with some loss. It happened many times that when I shorted a coin it started to skyrocket.

Then I had some experiment to prove my theory. I bought 0.5 bitcoin worth of VTC at a price of 0.00024. And in less than a minute the chart started to fall below 0.00022 and continued to become less than 0.00021. Had some short episodes of jumping up to 0.00023 and became still at about 0.0021. Hours passed and nothing happened. I decided to accept my loss and sell, and you know the rest of the story .... VTC woke up from sleep and reached 15% higher to about 0.00025. I had some other experiments and I am glad to tell that they also proved my point.

When trading an alt-coin, specially a low-volume one, remember that your 0.1 or 0.2 bitcoin might be considered a hefty prize. There are buyers and sellers waiting for a good opportunity to make your loss their gain. After you buy, they start to pull the price down forcing you to sell at a lower price And Just after you sold they start to push the price up.

If you are a quick trader like me you have no choice other than doing one of these:
1) Trade in very small amounts
2) Split your order to smaller amounts and buy the bigger parts at lower prices, Hopefully other traders aren't gonna tolerate this lowering of price very much.
3) Go for coins that have lots of volume
4) Never trade when no-one is trading

Believe it or not your actions have some impact on direction of the chart and every time you trade you must have this in mind that your loss is somebody else's gain and vice versa.

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