Why Crypto Market Prices Plummet As Soon As You Buy Them and What You Can Do To Avoid It.steemCreated with Sketch.

in #cryptocurrency7 years ago (edited)

It's happened to all of us who are new to the crypto-currency market. When I first started trading it nearly drove me mad. I was convinced someone must be spying on me and had it in for me. I would see a coin suddenly jump in price and no matter how early i caught it as soon as I hit buy it would crash. I would sell it, and no matter how long i waited to sell as soon as I clicked my mouse the price would begin climbing again.

What I did wrong:

My first mistake was investing in a coin I knew nothing about. Certainly I had no information that would support a rapid rise in market value. Thus I had no way of knowing how far it might go and whether it would hold when it got there or tank to a new ATL (all time low). I knew nothing about charts or where to find people who did.

Among all of these mistakes, given the market conditions we currently trade under (an Emerging Market) the greatest mistake was selling for less than I paid. With only one exception so far (PIVX but I'm sure it will come around eventually) every single coin I ever sold for less than I paid, not only regained its value but in most cases far far exceeded it. I have missed multiple 2x 5x and even 10x market share increases because of this.

That said the whole mess can be avoided if you observe one simple rule:

!!"Never enter a market where the price is already in the process of jumping"!!

but if you must then wait for a significant dip before entering. Nine times out of ten there's always at least one if not several dips on these price pumps.
A second pro move is to have a closing target and observe it religiously. No matter how much profit you miss out on, Greed will ultimately cost you more. Unless of course you enjoy throwing away money, I know some people are actually in to this. I am not one of them.

So then how do you catch these sky rocking coins?

Sustainable price increases happen for a reason. A good example is the market opening on a new exchange like say Poloniex or the recent addition of Litecoin to Coinbase or the addition of Ethereum Classic to the Korean Exchange Bithumb. The involvement of well known investors, a new Beta release, a functioning product rolled out. All of this information is easy enough to come by using nothing more then a few keyword searches on twitter and allowing notifications on your browser by major bitcoin news outlets like:
Coindesk,
BTC Manager.
The Merkle,
Cointelegraph,
Altcoin Today,
99 Bitcoins,
DEC Brief,
and also CryptoCurrencyRadio is great for listening to all the best Bitcoin YouTubers out there right now such as:
Coinigy,
Tone Vays,
The Rational Investor,
CryptoPortfolio,
World Crypto Network,
Crypt0,
BitcoinMeister,
Shitcointalk
or you can just follow my twitter, I post the best from all of these sources and many others. I find new sources everyday.
Http://www.twitter.com/aaronmdaley

Never believe anything you hear in Troll Boxes, sure there are little nuggets of truth in there but really if it was really so great no one would tell you. Unless you're on TradingView.com . Thanks to there reputation system and idea streams it's pretty easy to tell who is worth listening to and who is really out to misguide you.

Now here's the real kicker in all of this. The reason why you are not crazy, those prices really are dropping in reaction to your purchase. You're competing against software. Trading Bots, designed not only to buy and sell based on price but very intelligent ones designed to trade based off the trading habits of people like you and me. People prone to FOMO (Fear Of Missing Out) and FUD (Fear Uncertainty and Doubt) If you buy something and the price tanks immediately, it tells you right away this market is being manipulated by a Bot. They pretty much all are but some more aggressively then others. "If the markets Hot, Expect a Bot"

The question is whether the price is being inflated encouraging people to buy so the "Bot" can sell to you at super HIGH prices, or suppressed so they can buy from you at super LOW prices. In the case of inflation of a useless crap coin you can either take the loss or set a reasonable stop limit in hopes the market gets pumped again sometime down the road which is almost guaranteed thus far and is the basis for probably the best strategy for trading altcoins today which is divide your portfolio evenly like say $20, $100, or $1000 each among the top 10  to 100 altcoins (There updated in real time on sites like coinmarketcap.com) or however many you can afford and set a 10x stop limit on each and just wait. Eventually be it hours days or months they will all fill.

  In the case of suppression it's usually a matter of minutes or hours before the coin is allowed to continue rising. Patience in this market is second only to due diligence. Find sources you can trust and remember there are no certainties in life, no one is right one hundred percent of the time, be it noobs like me or wall street pro's. 

Also worth noting, the larger your purchase the more likely the Bots are to react to it. So be a Ninja. Don't blow your whole wad in one shot. Buy in a little at a time with a variety of purchase prices.

I hope this helps you and feel free to contact me if you have any questions about trading . I also have a small trading group on Telegram where we share information and idea's. Come to learn, come to share. Ask me for an invite.

Happy Trading!

Aaron M Daley (aka Ninjatoast, FordPrefect)
Daley Bitcoin News

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Thanks @aaronmda, very helpful recommendations!

I'm just doing the first steps on bittrex

And while as a blind kitten...
The only mistake that I made - not there the indicated zero
Well the amount was small

BUY Crypto, SELL the US toilet paper dollar!

The dollar will begin its 18 year cycle with a 9 year downturn period to the eurocurrencies as it always has done. This will probably be very bullish for precious metals as well.

Check out this post for more on the cycles of weakening US dollar and the current state of the dollar.

https://steemit.com/dollar/@sjovmaiin/the-coming-fall-of-the-us-dollar

my only wish was i had seem this artical when i first started trading 😁, learnt all this the hard way...dealing with your emotions when trading took me the longest to master...
Have a great day!!

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