Hello my dear supporter, cryptocurrency enthusiast. You Master money maker.
I am here to give you a quick update about our trades, Bitcoin and the entire Cryptocurrency market.
Bitcoin has been on a decline since reaching an All Time High (ATH) around mid December. After this all time high, Bitcoin has been on a retrace which later transformed into a market-wide correction.
A market correction happens when traders / sellers sell for profits. This is good as the prices stabilize, all weak hands are removed from the market, all doubt is removed and we set our footing, look for a strong support, in order to prepare for the run in months to come.
This is a normal market cycle. The price goes up, then goes down. Up again and then back down and so on.
We are now holding all of our trades, ignoring the stop-loss, because the entire market is going down. We trade Altcoins mainly in order to increase our number of Bitcoins. We hold these Bitcoins long and sell when they are at their highest. The only way out of this correction is to sell for fiat (USD and other currencies), after the correction is over you can buy back in. This is only advised when selling at the top, selling after the correction is already long underway, can cause you to sell at the bottom or wrong prices, this isn’t recommended. If any doubts arise when taking your next action, hold long. Period.
Once the correction is over, it can take days just as it can take weeks or months, we resume trading.
Everything is ok, if the market correction goes for long, we will still be trading and sharing new trade analysis / ideas, what we really need is market stabilization. For now, we are waiting to get to that point. So even if the Bitcoin and entire market keeps on going down, we will stabilize at a certain point and we can resume trading.
As I mentioned in the past update, I can start opening lots of new trades right now, but these can get invalidated pretty quickly and even put us in the negative right after we buy-in. This is not what we want. We buy and hold, remain in profit for long while we reach our targets. For this we wait for the best time, in order to make the best trades and earn as much as we can with the lowest risk possible. Right now there are many opportunities, but the risk is high and we do not take risks with our hard earned money. Waiting is key for this strategy.
You can follow my strategy for low risk and long term gain. While using short term strategies for short term gain.
Patience is the key for long term success.
Many more opportunities will be available, many more opportunities will always come
One strategy that I use is to “hold the old”, and bring “new money for the new” if the correction is taking too long. This way I double win when we get our bull market back.
One final thought. Consider this: You are trading to make money. That’s why we all trade, that is what this business is about.
If this money comes in weeks time or months time… It is all good. This is easy money. This is your money working for you. Even if it sits for months it will be worth the wait. Let me give you a quick example before closing this update.
Imagine you bought Bitcoin @ $10,000 and the price goes down hard to $5,000. That’s a 50% decline. Notice that I say “decline”, not a loss because you don’t lose unless you sell.
Now, you didn’t hold this money in Bitcoin, you were holding altcoins – so your balance will be affected differently – and let’s say your overall capital dropped to 45% below your initial investment. So your total capital went from a total of $10,000 USD worth of Altcoins to around $5,500. In this example we are just looking at your balance dropping from A (10 k) to B (5.5 k) to make it simple.
Now your balance is down, your alts are down and everything is down. Oh God the sky is falling… so bad… Not really… No big deal.
Bitcoin starts to go back up, say 3 months from now in this example, and the price goes to $15,000. Now, even if all the alts remained at the same low price when the correction started (which they won’t, this a very fast and volatile market), you will be looking at a 200% increase in price from the low point and a 50% profit from start. When the altcoins start to go up again, then you will see massive gains, this is just for waiting. On top of your 50% profits, you can see the altcoins double in price, triple and more, just like you can see with all of our trades in December. I am telling you, this hold can turn into massive sums of earnings. Just look at the charts for last year and the year before and so on, this is just history repeating itself.
Something similar happened a while back to Litecoin holders, these people held for years after a huge correction. When the price went back up, they sold at breakeven point, LTC vs BTC pair, but the price of Bitcoin and Litecoin was so high now vs USD, that all of these people that waited for years ended with incredible huge amounts of profits. This is what can happen just by waiting when you hold altcoins long. We sell for profits on the uptrend, we hold when the conditions are no good for us. This is a very simple strategy, that is why it works for beginners, because it doesn’t really require any complex knowledge of trading, it doesn’t require panic buy / panic sell, those normally come with very expensive lessons. All it requires is for us to be relaxed and calm. Enjoy the days that are positive, relax the days that the price isn’t going up.
In the meantime, when the market stabilizes, we start to trade big again. Many more opportunities will come.
Alan Masters here… A friendly soul.
Thanks for reading again…
P.S. I will be giving a more charts oriented update when the new trading week starts (Monday).