If you read my article, “Bear Markets Provide Gains Only To Snap Them Back”, you will understand how the market often brings participants to their knees by simply exhausting them. The constant up-down dynamic with no real price maturation over time can be extremely frustrating to some. However, the only reason it is viewed and interpreted as frustrating is that market participants are not making money. Every move up is later followed by a similar move down. This begins to map out the “bear market range”, which can go on for some time. Yes, this range is often breached to the upside as well as the downside but ultimately the range seems to have a magnetic hold over the price action.
Adjust The Way You View Increase
If you cannot secure an increase in terms of value then you need to find another way to realize some form of increase. This is where I utilize a fairly simple strategy that enables me to secure value in holdings or allocation. As mentioned in a recent post, I did not buy the pump to $24.300 but rather made use of another strategy to profit from the move. Let me explain how this method is superior to buying the bottom and simply hodling. Remember that this move collapsed back to approximately $20.600.
Instead of risking additional capital on new trades or investments, I sold existing holdings at the top. This was just below the $24K level. I sold AXPR at this point and later bought back approximately 34% more coins than I was initially holding. I repurchased this new and larger allocation once the market had crashed. If you simply bought the pump you would be flat on arrival back to the previous low. Sure, as prices rise, you will experience an increase but so will I. The only difference is my increase will have a premium of 34% because I now hold 34% more coins.
Rinse & Repeat
So, in a situation that frustrates some, others will utilize it to increase. Forget about one-dimensional strategies, and develop creative ways to increase when others are crying. Utilize multiple strategies in a single market move and have backup plans for your backup plans. This is how you secure always having a move for any market condition. If a pump doesn’t meet my criteria, I will rather utilize this approach than simply buying into a questionable pump. Another important aspect is to adjust your thinking. Learn to play both sides of the market. Success doesn’t require price appreciation. One of the easiest ways to identify a noob or inexperienced trader is that they are always waiting for the price to go up… “one dimensional”.
If you are not willing to move past the “buy low sell high” school of thought then you are likely to become frustrated, as the market doesn’t always move higher from your “low” buy zone. It sometimes moves lower, what’s the plan now? I play devil’s advocate with all of my trade ideas. I endeavor to pull them apart so as to recreate them better. The majority will continue to endorse their ideas because it is simply their idea. There’s nothing personal here, leave emotions at the door when you enter the trading room. Emotions and beliefs have zero impact in the marketplace. The market will at some point reveal this to all of us. Endeavor to remain with the data.