One of the most important abilities we need to have or develop when approaching any Cryptocurrency trading pair as an opportunity to make money is patience.
The Altcoins market goes through many different phases between cycles and conditions can change and are changing at all times.
What seems extremely bullish today can turn into clearly bearish tomorrow.
For example, a very strong bullish signal is breaking above a major long-term resistance level.
Just as a trading pair can pierce through a resistance, just the fact that a major resistance has been hit can lead to a retrace or correction and thus the strong bullish signal that is growth, prices moving higher and challenging resistance can turn bearish as soon as the correction starts.
Just as when you witness a stop-loss hunt or liquidity hunt event; We see prices moving below a support level, which is extremely bearish, just to quickly recover the following week or the next day changing the whole perspective again from bearish to bullish.
This is when patience becomes important.
Please, take a minute to look at the numbers for this trade signal that I shared 5-February for 1INCHBTC (click here). Let’s study the numbers.
- I shared this signal 5-Feb. with an average buy price of 2400 satoshis (0.00002400), the next day the price starts to drop.
- A low is hit 16-Feb. at 0.00002248, 2 sats below our “Next Support”.
- “Next Support” is our second-entry price, this is where we look to buy again, enter or see a reversal if prices move below the entry price.
- Right after prices start to increase and peak 21-Feb. at 0.00002855 matching MA200. While this is nice growth, this is still below our first target.
- Then after 21-Feb. comes a new retrace… It is normal for prices to drop after a resistance level is hit.
- This retrace sent 1INCHBTC right back to our initial entry/buy price and thus nothing technically changed in 3 weeks.
This is why patience is key!
In 3 weeks we have normal swings, up and down, noise, short-term moves that are completely irrelevant to our trades.
As long as prices remain above the stop-loss, the trade is active and the only possible action is to wait.
When resistance is broken and prices start to grow, we collect the profits on the way up.
Since it is for me impossible to predict if the breakout will happen tomorrow, in one week or month one, we can only spot the good/solid chart setup and wait for the market to produce the results.
In fact, you can spot a very nice and strong chart and decide to buy big right away, as soon as your purchase is made, if many people also find the same chart, the bots and exchanges will immediately sell the pair you just bought and make you wait.
It is impossible to beat the giants, the exchanges, the miners, the institutions, the whales… For us the small fish, we have to buy and wait.
Some trades definitely move fast and within days… Others can take months and thus patience is necessary to be successful in this game.
The pairs you see in big exchanges that move first, fast and strong are the one that the least amount of people hold.
The pairs that move last are the ones that everybody bought.
- If you lose your patience, you will end up selling right before prices go up.
- If you are patient, you will earn now, later and also in the long-run.
Build a plan before trading or use mine, whatever you do just be prepared, sometimes we have to wait for a long time.
Namaste.
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