When is a trader a trader?

in #crypto7 years ago (edited)

The word “trader” is not a term that is exclusive to the financial markets.

… This is a very important factor, and one that reveals how simple it is to be on the right side of the altcoin market.

In each of these different fields, there is one common factor that is forever present. Do not take for granted, just like there are novice traders in the crypto currency market, there are novice traders in the Sea-Food market, the Restaurant market and every other market in existence.

You see, there are used car ‘traders’, luxury watch ‘traders’, electronics ‘traders’, supermarket ‘traders’, black market ‘traders’, e-commerce ‘traders’, retail ‘traders’ and wholesale ‘traders’.

So to buy into an altcoin, profit from a pump, and then to forget that coin exists would be like Walmart selling 500,000 porch benches and then failing to re-stock, they would be literally flushing money down the toilet if they did that.

Popularity is also a major factor in the altcoin markets because, the most popular coins always attract the most volume.

This is why celebrities are ranked in terms of their popularity, because the more popular a celeb is, the wider their audience is – thus, corporations can pay celebrities a small fee (endorsement deal) to reach a ‘large’ audience, and then make a large profit – (this is also a trade)

So simply, you must expand your holdings by using your profits to produce more profits… because, if you don’t have the right “stock” at the right prices, then clearly, you will never profit

In terms of knowing what to buy, and when – it is simply a case of tracking supply and demand

However, like I previously mentioned, there is one factor that separates the successful trader from the unsuccessful trader, and this factor is the ability to track supply and demand.

For instance

Imagine waking up in the middle of winter. You may have been wanting to go into business for yourself, so you devise a scheme to accumulate money quickly. So, you begin to think to yourself, “it is freezing outside, and we are at the height of winter – I GOT IT! I’m going to go out and purchase 100 fur coats at the ‘best price’ i can get, so that I can sell them for a profit.”

This is a losing proposition, in fact anyone thinking like this has already lost the game.

You see when dealing with commerce, there always exists a small segment of skilled traders

Yes you may wake up at the height of winter and decide to buy and sell 100 fur coats and profit from a slight margin, but who will you buy these coats from?

The most skilled players in that arena will have filled their entire warehouse with fur coats during the height of summer, when demand for thick fur coats is at it’s lowest.

Therefore this skilled trader can sell 100 fur coats to you at a 5% discount and still make a 100% profit, whilst you will only be able to resell the coats at a 5% profit – if you’re lucky.

This is how the game is played, you have to go counter to the typical trader.

Quite simply, you must grasp the fact that, regardless if there is manipulation or not – coins move in cycles. There is no such thing as a ‘dead’ coin until it has been removed from the exchange

In fact, if a coin is being labeled as being ‘dead’ yet it’s market is still open for trading – without the threat of it being removed due to low volume – then it is actually being accumulated and prepped for it’s next moon shot.

Again, using the above example, we are all traders, dealers, distributors etc

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