Our Real-World Example
To get the new year started off right, we're going to be releasing one of our trades publicly every month so you can see for yourself how the current crypto market is a modern-day gold rush. In this example, you'll see how we chose a coin to put $10,000 into, and how it turned into $100,000 in less than 30 days. This isn't just a one-time stroke of luck.. quite a few altcoins have had similar success in the same period, most of which were sent out to our Cryptodealer.io enrolled students.
Here's what you've missed.
Step 1: Identifying an Opportunity
As we teach in our course, there are a few key elements we use to qualify a coin for trading. One of these elements is the current price trend.. is this coin dipping or rising in price? Most traders make the mistake of buying into a going as it's rocketing upwards... this is the FASTEST way to lose your money. Take a look at the chart below:
This chart is a snapshot of the Fun Fair token (FUN) between the dates of September 27th 2017, and December 12th 2017, each candle represents 1 day.
The 2 blue dots are the two entry points where we purchased FUN. Notice the first entry point is in the middle of a big price dump, and the 2nd entry point is near the all time low. This is the key time to enter into a position.. when the price is dropping and the trading volume is low (less than 1,000 btc).
There are a few key things you need to take away from this:
- You will never be able to perfectly time the market; hindsight is always 20/20. Our first entry point would've been much better if we had waited, but there was no way of knowing if the price would go up or down. However, because we've done our research on this project, we knew the price would go up soon. We would have likely sold had the price jumped back up towards 854 sats for a small gain, however the price kept dropping which leads to the next point...
- You must be able to take a 50%+ loss like it's nothing. If you can't handle this, you probably shouldn't be trading. Watching our purchase lose half of its value hurt, and a lot of people would have gotten scared and sold at a small loss and gone elsewhere. These are the people that lose. Hodl strong and don't sell at a loss, it's all apart of the process.
- Sideways price action near an all time low is the calm before the storm and the best time to accumulate. Our second entry point near the bottom couldn't be much better. Look at any coin that explodes in value, and you'll almost always find the same signals: low trading volume and a long period (30-60 days) of sideways price action.
Step 2: The Waiting Game
Now that we've entered into our position, the next step is to literally just wait. Lots of new traders make the mistake of thinking they have to "day trade" or always watch the charts. This is not only extremely stressful, but usually unsuccessful and driven by lots of emotion. A successful trader only makes about 3-4 trades per month, if that. If you have other capital and positions to play with, do that, but you should only need to check the charts once or twice per day at this point. What we're waiting for here is the next big price jump, also known as the selling phase.
The selling phase is usually triggered by a small uptick in price or volume, due to a new announcement or rumor. This then snowballs and triggers many people into the fear of missing out (FOMO) which causes more people to buy or research the coin, and so on and so forth. This is why you don't want to be one of the people buying when the price is going up... you want to be the person selling to them.
It's important to recognize that during this waiting period, you may see other coins exploding and other opportunities pass you by. Ignore the temptation to jump ship and switch to another coin. There are so many different cryptos out there, there will ALWAYS be something blowing up. Focus on your position and stay committed to your choice.
Step 3: Profit
This next chart represents December 1st 2017 through January 5th 2017. Anyone who purchased in the beginning of December got in at the perfect entry point and reaped the most profits from this coin. The USD value in December was 2 cents, and now in January it's bouncing around 17 - 20 cents. That's a 10x profit!
This is a great time to exit and collect profits if you feel the need to do so. Even if the price goes up after you exit, at the end of the day you still made a great trade and you should never beat yourself up if you find yourself in this situation. Remember, hindsight is 20/20. What we decide we'll do from here however, we'll save for our enrolled students :)
Bonus: Day Trading
This chart is a 1 day snap shot of the price movement, each candle representing 15 minute intervals. We generally recommend staying away from trying to day trade, but if you insist, these are the perfect conditions for doing so. High volume (2,000+ btc) and sideways (or almost sideways) price moment with predictable wave patterns like this which usually appear after a huge price increase. We were able to sell our stack of 540,000 FUN and buy back in at a cheaper price the next day, increasing our stack to 568,000 FUN (roughly $5,000 profit).
Don't get greedy however... these patterns don't last forever.
- DYOR. Finding a good opportunity takes time and research. One advtange to enrolling in our course is we do the research for you, and present multiple options that are all solid choices. Knowing what to look for takes time and experience in the market.
- Don't trade on emotions. Be okay with taking huge losses. Remain patient and remember why you bought into a coin in the first place.
- Avoid day trading unless conditions are ideal, and don't get greedy if you do.
- These are only a few of our many key strategies we use for identifying good trading opportunities and qualifying a coin. If you'd like to get the entire strategy and are ready to take crypto trading seriously, enroll in our course today.
Find More Opportunities
This is one freebie we're throwing out there for everyone, but there are some GREAT opportunities right now, even greater than this one if you act fast. If you're interested in learning how to consistently make profitable trades, as well as receive notifications of new opportunities, enroll for the Crypto Dealer course today.
There are limited seats available so be sure to reserve your seat for the next 30 days.