Learn to enjoy the battlesteemCreated with Sketch.

in trading •  last year

You have to pick your battles as a trader.

If you have been following my blog videos, you know that where I buy in on any chart is only where my odds of success are very very high. It takes patience to wait for these opportunities to present themselves. But if you wait and buy in those safe circle areas, you will almost always get an easy profit. However once and a while there will be a surprise, where the coin you bought falls further than you expected and you are able to layer in with a few more lower priced buys. This is where things get exciting. As a trader I live for the battle.

Lets discuss those trades that require a battle.

I'm very conservative trader. So if a panic actually allows me to buy more than once (barely ever happens) than since I was surprised and the panic allowed me to get a little more, I usually take some profit quick on most of my position whenever I get any bounce. It seems there are alot of traders who were confused by my last video saying: "participate in every bounce". Some thought that I was saying to exit your entire position early. Like you can somehow predict from price action that your alt trade will not return to its previous base??? I said and explained that "participate" means begin to sell some at break even or for small profits. You were surprised and the coin fell farther than you expected, so sell some at a quick profit and if it bounces further, sell more and so on. But at least participate, in trading you get paid for participating, that's how it works. Then if it suddenly dives again, you are now in a better position to average down further. That's is what I call working a position, all the while you are working under a base, so you are working in an area of high odds. (This is not to be confused with adding to a loser, which is the worst trading strategy that anyone can use.) Remember that you are working in a safe circle, clearly under a base, that's where you want to be working, that is the only place you want to be buying.

Are you a trader or an investor?

The worst thing a trader can do is sit there and not work a position, and instead allow the position to work against him, then later wonder what went wrong. Sometimes traders get lazy, because my method works out so well, that they mostly just get that one buy and then the bounce and then then they sell for profit. So they can get complacent, they are not battle hardened. I live for the battle, because I almost never get to fight it out. All my trades just profit, so if one ever surprises me and keeps diving, that's when I get excited and go into BATTLE MODE. Taking small profits, reloading on new lows, taking some quick profits again, reloading.. and so on.. and loving it.. All the while knowing that those bounces are getting to be higher and higher percentages the lower this coin works its way down. And most importantly, knowing that there was a clear base above that puts the odds of this entire battle way way skewed in my favor.

Are there guidelines that I follow for the battle? Perhaps buy every 15% drop and sell every 10% bounce?

No. There is no magic formula, every trade is different. As a trader, it is good to be thinking in percentages, but you cannot make hard fast rules. Your working a chart, and every coin will drop a different amount. So you have to read the chart to know what to expect, and then play it safe. If you get a fast bounce you sell fast and a bigger sell, maybe up to 80% of your position. But if you get a slow grind up then you sell in small chunks slowly. It all depends on how the crowd reacts and how aggressive the buyers are. You will find that in a panic there will often be a sudden spike in the price and then a continuation of the drop. If you are quick to sell when you get one of these quick bounces, then you will be able to instantly reload (making an instant profit). Now you are truly understanding the battle. A sudden spike is only a few big buyers and that is a gift, so take it. But a bounce that is a slow grind up requires many buyers and is often sustainable, and so you want to sell a little at a time because there is real buyers coming in.

My hope for each member of the Quickfingersluc community is that you start to enjoy the battles, as I do. I make so much more when I get surprised and something drops further than I expected. I live for the battle, its the best part of trading. Easy (small) profits are great, but I want to get a chart with some real panic and argument. And always remember, you started this particular trade because the chart has shown a history of always respecting its bases. This means that your odds of success are extremely high. So after you have worked the trade and made some profits, and are out of the trade, then you can consider not trading that particular coin again for a while until it resumes respecting its bases.

Participate in every bounce

I hope this post helps clear up some questions about the rule: "participating in every bounce". Subjects like these are often discussed in the Quickfingersluc slack. Our Slack has gotten huge, almost 2,800 traders, wow, unreal. Thanks everyone for being part of this, the slack really comes alive whenever those major coins start breaking bases. So when you start to see panic in the market, make sure you go, sign in to slack and join us, get the latest news, share your trades and see what trades other members are taking.

Luc

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Hi Luc. Just want to clear something up, when you in battle and you reloading after every quick bounce, you said its safe cos its under a base. are you referring to the original base that you started with or the bases formed by the quick bounces? in other words when the battle starts do you disregard the original base and just focus on the new ones forming? excuse the noob q.

I think for trading you shuld have a inside information.

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Only if you want to make money trading. Otherwise no inside information is required :)

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Hi tizzle, may I ask you if it is still possible to get an invitation for the market base scanner?
I would appreciate it a lot as I am trying to learn the luc's method but still I need a lot of practice..
I hope to hear you soon. Thank you in advance, Paolo

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Hey Tizzle, I noticed you're in Vegas. Do you know if there is any decent local community of Crypto traders here? Thanks!

Thank you Luc for taking the time to write the blog so fast : )

Fascinating stuff.

Thanks Luc. I'm learning, getting better.

Excellent explanation. A good example of this strategy I used just last week when ETH-BTC was going nutty. I bought on the dip, but it kept on dipping, so I layered in some lower buys. Then when it came back up I sold those lower buys for a little profit. Then as the chart climbed back up I sold my higher buy ins for profit. Just need to ride the wave and enjoy the ride, and battle. Thanks for the advice Luc.

I recently found your method and cant wait to start using it! Sadly, I have already been participating trying all these different technical analysis things and mostly losing money! Would your method work to get me more of my bad positions so that at least they are worth more when I run from them?

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Not sure if you mean your current positions in coin or not. If that is the case, it doesn't seem like this method would necessarily help that. I am just getting started with QFL method and what I've gotten from it is that you just have to follow the rules of establishing bases, layering buys on panic drops, and selling on the ups.

how do i join slack to follow you??

im totally new to all this but keen to learn how you trade.what videos do i watch first and where do i find them?
thanks heaps i look forward to following you all in crypto world

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Go to his youtube page.

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Watch ALL of Luc's videos ... at least 2-3 times ... it will be time VERY WELL SPENT!!

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Also ... make notes while you do and then you can then go back to them to refresh your mind when you need to remember what was said in each one

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Thanks for doing that

Learning something new all the time from you
Thanks Luc

Great write up. A thousand thanks for contributing so much to the community Luc!

Hi there Luc,

I am a newbie in trading. I think it's a nice and exciting thing to do. I saw a lot of your videos and it's a pleasure to listen to your lectures.
I put a lot of alerts here and there, but when I hear the sound, I walk to my pc and am not sure what I should do. For example. NEO went down for 2 dollars, but I don't like the line the last week. It seems it will only go down. My question is, would you buy here or not?

Thanks

Schermafbeelding 2017-10-21 om 15.38.33.png

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i bought in here.. and yes.. luc's startegy is under the base and keep scalping for every low..

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While this chart is very safe, because the NEO argument is thick, you really need to look a little bigger picture.. You need a chart with 2 months of data to find those bases and figure out what an average drop looks like. The highest odds are when there is a panic below a base that you have calculated from looking over the past panics...

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Luc, thank you so much for all your help. It´s probably hard for you to fathom of how much help you have been to. My question to you is how many position trades do you think you could catch if you spent most of your day trading? What is a realistic number for two somewhat novices that are passionate for more!

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there are times when there will be more than you can handle, because often everything in the market drops at the same time.. and there there will be days when there are only a few trades availible.. There really is no way to get a regular steady supply.. but eventually when you have a big enough account, none of that will matter, because you will make so much on a few trades that its well worth your down time.

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Hey Luc can you share some details on account building strategies? What are your 3 favorite?

great post Luc!

I start watching your youtube videos on how to become a trader, I'm new on this world of cryptocurrency... thanks for your posts, they are really helpful

I am so exited to try your method, I am practicing now on tradingview paper trading, simulator, does Coinigy have a simulator to practice on, tradingview simulator doesn't allow more than one alert, thanks for everything.

Luc, thanks for this post, it helps clear things up a ton. Question for you: Do you find yourself trading more USDT pairs or BTC and ETH pairs? My concern is that trading something like an ALT/BTC pair is that you have to be very mindful of how BTC is behaving because that plays a large role in the ALT/BTC price. The downside is that it appears the larger coins paired against USDT have fewer panics. Any thoughts on this?

Thanks in advance - Dan

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Dan I'm a beginner but I'll share with you what I do. Since most coins are offered with BTC and ETH, what I'm doing is trading to and from BTC and ETH on a day to day basis, and swing trading (around 1 trade per week maybe, depending on the price movement) BTC and ETH. My strategy was to minimize my risk by not keeping everything in BTC, so I split my capital between BTC and ETH (extra layer of safety: I trade BTC and ETH on two different exchanges). What happens now is that if BTC goes to 0 tomorrow, I still have half my capital in ETH. Also, if cryptopia gets hacked tomorrow, I have half my capital at Binance. Hope this helps.

Thanks for explaining this Luc - I was one of those traders who was slightly confused after your video yesterday - but watching it again (after reading the above) and I get it now!
I'll definitely be more prepared next time a chart stops respecting it's bases - nice one :)

Love the article Luc, have to say this is probably the hardest thing I find to implement. I have just 1 thing I'd like to clear up with you if thats okay .

You say :
Taking small profits, reloading on new lows, taking some quick profits again, reloading.. and so on.. and loving it.. All the while knowing that those bounces are getting to be higher and higher percentages the lower this coin works its way down.

https://www.coinigy.com/s/i/59f25779dff23/

In this graph I know that my first 2 buys were way too early and my 3rd buy I should have participated in the bounce like you explain here but my question is about 4th buy here. Should I be going in for bigger size with this since it is now 15% under original base? Should my buys 1 -4 be getting progressively bigger or should I only layer like this when there is a pure panic? Sorry if that is long winded, know you're super busy with everything so no worries or pressure to respond. Thanks man.

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Good q similar to mine. Also want to know if we should we continue with the original base and consider all under there a safe zone to buy(good distance under the crack) or after a bounce should we start again with the new base formed.

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As the price goes lower, you will be able to get even more coins for the same amount of money. So I will always at the very least keep buying more with the same amount of capital.. But I always go bigger as I layer.. so if you bought 40s and paticipated in the bounce, maybe selling some 42s .. then I would likely buy 38s with the same amount you bought 40s earlier.. but if it continues lower without a bounce, then I get in bigger, and bigger layering.. Im not sure if that makes sense to you.. So my first buys are usually the same, but im always hoping that it will continue lower without a bounce.. I want a real panic.. so if I get the opportunity to get a second buy or a third, they get bigger and bigger.. but usually I only get the one buy and then a bounce, and I profit but am a little disappointed.

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Thanks alot for the reply! Yes I think that makes sense. Will keep reading over it to remind myself thanks.

https://www.coinigy.com/s/i/59f459759e0b4/

In this example. I bought 100 DNT at 940. Now if this continues to drop, I have another buy order of 100 DNT at 775 & plan to participate in the bounce & get out. Since there isn't a pure panic, I buy the same amount of DNT as I did previously. Is that correct? Thanks a bunch Luc!

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As I get it, this looks like martingaling... Isn't that dangerous in the long run?

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Hey luc for small account building trades on the smaller volume coins, do you apply your same method? (Buy cracked base method)

Thanks for this Luc. I have been running with your strategy for a couple of weeks now and things are going well. I really appreciate all your advice.

hey quickfingers can you contact me @
edmondisyan@gmail.com

Great article Luc.

I am still trying to join your Slack. How can I get in?

Also, your strategy of buying more and more as it continues to drop, only works with bigger accounts? If you have a 200USD account, you just can't keep doing that. When would you let it go and accept a loss? Atm. I see many charts not recovering to their bases. I have positions I don't know what to do with because of this.

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I am new to trading in general. I am only trading Eth so I can get comfortable. I have put half in to my first buy and set a buy for the other half at a lower point. Again new to this so I have made 3 successful trades using this and it hasn't hit my lower buy ins yet. Also I always set a limit sell at around the base, but I continue to watch it to see if I should adjust it up or down. The base is a likely spot it will get but it could be strong and go higher or it could be weak and not quite hit it. I would start watching Eth it's guaranteed to hit its base or go past it (at least it has for me so far).

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Yes, Eth is pretty much guaranteed to hits its bases - even if it takes a while. However at some point one might want to trade other cryptos than Eth, and then you need to know when to cut your losses, and how to go around doing this if your account is not big enough to keep accumulating more as it keeps dropping.

I am still waiting to get in to your slack. Never hear anything Luc. I have applied more than once.

Hey luc, love your stuff. How do u know when to sell? I know the safe option is to dump when price recovers to the level of the previous base, but what about instances when it shoots past? Do u use a stop loss? Or a gradual exit?

Hi, just started my Steemit account because of your articles on daytrading. Alot of insight and hands on instructions without alterior motives. Im loving the community here and how its built to promote good and positive storys and information to evolve.

Just wrote my first article on an mlm scam site and how it functions behind the scene. (Or at least my perception on how it opperates).

Will keep following you and learn from you.

luv it, I appreciate it greatly

hey luc how are you?
This is rick from the netherlands.
I just want to thank you for your videos.
it is the reason i finaly start trading after a year of willing to do it....but just didnt know enough.
After seeing all your videos i finaly understand some thinks and i have starting with trading.
At first i only looked at some charts for days to understand how it works.
Than i start...and first i thought it was to good to be true....but man you where right all the way!
You said in a video that you like when someone is posting charts....wel this is my first one i am tradig with...en it went very well.
Your videos where a really game changer for me and i loved how you making it understand for the newbies.
Now becease i understand it....it is more easy to learn.
thank you for the videos and i will keep following you.

Hello Luc,
I´m very new to trading, about to make my first trade ;) and I would like to follow your method. Because I´m still a bit insecure about what I should consider as a safe base and what not, I wanted to ask you if you see the new base with ethereum at $455 ? Or was for that the bounce too little?
Thank you very much in advance.

Hi Luc,

Love your videos and your methodology makes absolute sense. I am new to trading and stuck on the technical aspect. For example, if I want to buy a trade, do I buy it and then immediately close my position to ensure that I have bought it at that price? And the same when selling? Sort of confused on this. Or do I buy something at $20 and wait for it to increase in value and then close it, totally skipping the "sell" part...

Hi there! I am enjoying your articles! At age 51, I never thougth I would enjoy trading so much; especially since I only started recently.
This article reminds me of the time when there was a big drop in bitcoin. I was so worried about losing the value of my litecoin, that I spend that whole day buying and selling as it went down. I didn't lose, and that gave me a whole new perspective on trading!

Thanks so much for your videos. I only started this kind of trading a few days ago, but thanks to you my portfolio is up from its starting value ~17.5%
That may not be as much as other people, but I only just started and I lost 20% on my second day before I had watched a bunch of your videos. I joined steemit specifically because of you. You are a man above men. Thanks for the help!

I just wanted to say thanks for sharing your trading philosophy. I followed all your videos and dove in with about $500 and in 4 days had over $1000. I've gotten a little sloppy as I branched out, but I have maintained a healthy growth using this safe method. I'm up voting every single one of your posts.