I was in a rather splendid conversation with a friend about trading cryptocurrencies when he recommended me a book to read. Unfortunately, I do not remember the name of the book. However, the conversation quickly escalated into trading edges, trading ideas, strategies, and more. My friend is rather new to the cryptocurrency market and I find his perspective very refreshing.
Since the market was red yesterday, it gave us an incredible relevance to talk about how we were strategizing against the movement. Of course, our different approaches got highlighted very vividly within the first few minutes into the topic. What he sees as a trading edge is to me what one man's trash is another man's treasure.
Long story short, it is about the different trading edges we start cultivating and religiously follow, which usually only comes with experience within the market. Ah, the market. What an overrated concept in terms of cryptocurrency. For one, I do not believe that there is a "market".
My general approach is that there is no "market". There are traders, and the majority of the collective decisions make up that of which becomes the market. Even then, most of the market is just bots. Bots that are either coded, bought, or rented. Each fed with different algorithms, styles of trading, and a diverse way of approaching the same goal - profit.
Take DOGE and AVA for instance. One is a shitcoin, derived from a meme, no real usecase in sight, but still doing pretty well. The other is a well-planned, mapped-out, calculated approach at intertwining digital asset to real-life use case with substantial benefits, also doing pretty well. If we were to apply "the market" factor to these 2 coins, one of them would never see the light of the moon - but it did.
In the equity market, anything from a single tweet to a sanction can cause major fluctuations in the stock price. However, the same factors hardly ever have a concrete effect on a cryptocurrency. DOGE did as good as it is doing because of the collective decisions by traders like you and I, which translated into "the market favoring the coin". AVA, in the same light, has much to offer and also bridges the real-world business and digital asset gap, for which the market is favoring the coin, also.
When I start simplifying this concept it leads me to believe in my own trades with more confidence. I am just one of the few millions in the market, and the one ripple that is building up to a wave that influences the next candle, along with all the ripples from readers (or bots) like myself.
However, to truly become the market, it takes a collective that has so much volume so as to make the next candle a green or a red one. On the other hand, if you yourself are holding enough volume to change the tide, more power to you. Whatever the market may be at the time of your position, it will always jot down to how and why you decide on making the trading position. Whether it be sell, buy or hold, the decision is hardly ever against the market, it is against other traders, or more simply put against yourself. And when the next candle comes by, the cycle continues.
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Trading DOGE right now is pure gambling (unless you bought at 100 satoshis it was fine), because anytime it would crash.
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I think I bought my first bag sub 100 sat. Been holding for a loooong time. The latest I bought was a few months back, I don't remember what price it was at then.
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!LUV
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Excellent messages. Half a year ago I tried to trade short and long positions. I now look at most of my assets solely as HODL. I know that this is not an ideal solution, but safer for my psyche and health :)
!LUV
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Health comes first! you have made the right decision, mate!
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