Episode Highlights:
- 00:09 – How I Trade In The Cryptocurrency Market
- 02:08 – Trading Cryptocurrency Using Coinigy Platform
- 03:20 – Base Trading
- 05:25 – Chart On One Hour Basis
- 06:00 – Example Of A Base
- 09:31 – Few More Examples Of Bases
- 13:47 – Another Example Of A Base
- 19:53 – More Examples Using Nxt Chart
Grow your cryptocurrency investments with personal one-on-one coaching from Crypto Camacho. Click HERE
Transcription:
Hey guys, Dan from digitaluptake.com. Hey today guys, I really wanted to just dive in and show you guys a few trades that I’ve made recently.
00:09- HOW I TRADE IN THE CRYPTOCURRENCY MARKET
And how I typically trade it in the cryptocurrency market. Right now, the markets are so hot, I mean they go up and down. They’re so hot meaning, they’re so volatile. But they go up and down so, often that it’s actually quite easy to make money in the market, or on the exchanges today. And I’ll show you exactly how here, in just a moment. What I typically do, and I’ve only been doing this for maybe two months. And I’ve been learning it you know more and more over time from a variety of people. I’ve done some stock market investing, penny stock investing in the past like we’re talking maybe a decade ago. Maybe you know eight, nine years ago something like that. And I’ve tried this method before, and it does work decently well in the penny stock market. You know the regular stock market whatnot, but it works extremely well, and it’s very effective in the cryptocurrency markets today. And you know the cryptocurrency markets being so, new and whatnot. There aren’t many institutional investors, or you know big-time players yet trading on these alt currencies, or even Bitcoin really for that matter. I mean that is starting to pick up more institutional players are coming, more market makers are coming, so forth and so on. But it’s much less than you know the traditional stock market, traditional penny stock market, over-the-counter stocks, and so forth. So, now I want to show you this method it’s called base trading. And what it really is, trading on people’s reactions to panic. People typically, will panic when a price starts dropping, or falling past a certain percentage on you know, the group that’s invested in the particular stock or cryptocurrency will tend to panic. And as the stock is tanking more and more people will sell the stock, because they think it’s just going to go to the floor, and it’s just going to be gone. And it’ll go away, and it’ll never recover their gains back, or even maintain you know their account, or their positions the way they first bought into them. So, I’m going to go ahead and show you a little bit of how that works today.
02:08 – TRADING CRYPTOCURRENCY USING COINIGY PLATFORM
I’m going to use Coinigy here you guys can see that I’m on here. I’ve only been using for gosh less than 30 days, you could kind of see up here I have four days left on my trial. And I’m about to sign up for a paid version. Before using Coinigy, I was trading directly on the exchanges, like Bittrex, Poloniex, so forth and so on. And I was trading directly on those exchanges; which means that I had to go to an individual, or a separate website every time I wanted to trade right, because of Bittrex, Poloniex, Hitbtc. All of these exchanges are technically different websites, and I had different accounts across all these different exchanges. So, I’d trade on them individually about a month ago, a little less than a month ago, I was introduced to Coinigy. And what Coinigy basically is, it allows you to pull in your cryptocurrency. So, especially your money, your cryptocurrency into Coinigy, into a centralized platform, which is quite easy. So, you can pull in you know your wallets, your cryptocurrencies from Bittrex, or Poloniex, or you know Bit Fenix, or whatever exchange you want. You could pull those all into Coinigy here, and maybe just really easy to do trades. And want to manage all of your money from this destination.
03:20 – BASE TRADING
So, anyway let’s get back into base trading, and what I was talking about. So, right now we’re looking at an Ethereum to US dollar tether market, or exchange. I’m looking specifically, at Bittrex exchange. You can see up here looking at Bittrex and looking at Ethereum to US dollar tether. And I’ll talk about what US dollar tether is a later time. But anyway, I want you to look at this chart, and I want you to take a look here for a minute. I’m looking currently at the chart in one-hour increments. So, let me zoom in here. Each one of these blocks right here, it’s an hour right. each one of these little boxes, each one of these candlesticks as they’re called. It represents one hour. You can dial that up or down, you know all the way down to a minute, all the way up to a month. So, let’s just kind of dial this out for a minute, let’s just say one day, let’s just say three months right. So, this is kind of actually, let’s go to a year. So, this is how Ethereum has been performing over the last year. Every day right, it’s been kind of going up and down. So, what I do is I tend to trade only when the stock or the cryptocurrency is at the bottom. So, when you know when there’s a panic, or when sellers start really dumping a particular coin, that’s when I’ll jump in right. That’s typically when most people dump and panic and sell. That’s typically when I buy and that’s when you want to buy as well right. Because you’re buying against people’s reactions. You’re buying to people panic, again to people’s panic. Thinking that the coin is going to crash, and they’re not going to make any other money back. But we’ve seen over time, these you know these markets do tend to recover. And as long as you have confidence in the coin itself, in the technology itself right. And you don’t think the coin is going to go away, and you think or know that there’s a base of people that feel the same way as you do. There’s always going to be a buyer kind of at that bottom level, at the bottom of the market, at the bottom, or below the base right. And what do I mean by bases here?
05:25 – CHART ON ONE HOUR BASIS
So, let me just jump back into it. So, I typically look at charts on a one-hour basis, because it gives me enough time to react if you know a stock is falling. But it also gives me enough time to actually trade to actually execute the trade. You got to be very quick to get in on the trade when it’s at its lowest. And then you got to be very quick to trade the stock when it’s at its highest right so, you can make some money there. And it is often you know it’s sometimes tough to time, you know these dips and these Rises, but I think the technique that I’m about to show you; it’s a very-very good way to do this.
06:00 – EXAMPLE OF A BASE
So, let’s just dive in. Let’s just look at an example of what I mean by a base. So, what I mean by a base is anytime there’s a down like a very sharp downswing or a very sharp uptick in these markets. That’s what I’m referring to when I say at the base. So, if you can look right over here, you know in let’s see like the middle of August, couple weeks ago here, Ethereum just balanced right up. It went all the way up to 316, around 314, $316 maybe 320 somewhere on there right. When all the way up, one of the ties right, then you can see only about one day later, maybe less than a day later, half a day later, it went all the way back down to 276 right. And when it dropped like that, it actually created a base. So, let me zoom in here and you go back to that base. So, like right here so, you can see this base. It went all the way up and drop all the way down. And it settled around 276 before bumping right back up again. So, I’m going to draw right here. This is a base right, that’s a base. That’s the low point. Day to day when the markets trading you know people were panicking, they were dumping the stock, and then they met resistance right at about 276. There were a group of buyers that said wait a minute, this is a good price. And they’re looking at the 270 prices, 275 markers is what I suspect. 275 it’s more of a psychological point right, it happens around 300, 275, 250, 200, any of the kind of even round numbers. If you will, I know 275 is not an even round number, but it’s a signifier right. When the price drops below…one of these signifiers, people tend to think oh that’s a great deal. Oh Wow! It’s never going to drop below that price. I need to snatch this up right now. And it looks like that’s exactly what happened right here. You know the prices are going down, down, down, down, down, down, down, all the way from 320 all the way down to 275. People saw that they said Oh 275? That’s actually…that’s a screaming deal. I need to buy into that. And you can see a number of people got back into the stock. And so, what happened is it bounced from 276 all the way up to 304 in a matter of minutes right, and that’s a decent percentage right. That’s a pretended 20% actually, what is it around 8%? Something like that, where it’s bouncing from 275 all the way up to 303 right. So, what I’m referring to as bases, it’s the bottom. It’s when there’s a panic. It’s when people are dumping and selling their stock as quickly as they can. And the bounce is when people realize oh! This stock is…this actually…this price is actually, a really, really good price and they buy back in. So, what I typically do, and I don’t typically draw these I did at first and you may want to do the same. It kind of help to keep track of these bases, because not all of these are bases. I’m not going to do that a little bit later, but so what I typically do is I follow the stock day-to-day. Anytime I see a base, I kind of draw that line, or I mentally you know just check it and make sure that it’s set. What I’ve been doing as of late is, I think going up to here in a clinic and I’ve been setting alerts right. So,anytime I find a base, I will go, and I’ll create one of these alerts. So, I’ll set one of these alerts, I’ll just kind of drag it down to the base. And I’ll say okay that’s a base and I will set the alert right. Then any time the stock drops below 275 again, I’ll be alerted, and I can pick to buy right.
09:31 – FEW MORE EXAMPLES OF BASES
Okay, so that’s kind of how you find bases. So, let’s look for a few more right. okay, so you know this going up going back down. Technically, this can be called a base right. It is really a base because there’s a pretty significant balance right at 287 to 310. That’s a pretty big bounce. So, I would draw base there right. Draw your base, draw your base and then again you go up, it’s going down again. Oh! There’s a base, is that really a base? Maybe, and maybe not. Technically, it is a base, but it’s a very small base right. It’s only bouncing from naught 294 all the way up to 304. Not a huge base right. I try to look for bases that are much, much larger right. The big percentage points. You know where those bases are let’s drawn lines there and is it. So, okay so going through this chart we see more, more bases. Okay, we see another panic, see it goes all the way up again, all the way up like past 320 and then it goes all the way back down again, back down to 285. So, I would call that a base, because it’s such a dramatic drop or decline that technically speaking is a base. So, I draw my line okay. And what you’ll notice is that once you start drawing all of these bases, so let’s just say this is my base. My latest space right and I’m drawing these bases as charts going along. What’s happening is once people notice, or once these prices fall down to the base, you draw the base, and they bounce back up. If you look at what happens a few days later, in this case, they typically always recover not always, but 99.9 % of the time they recover. And that’s because they’re being traded. The actual coin is being traded based on reaction. it’s being traded you know based on emotion, and not necessarily on factual changes in the coin, or the technology, or the market, they’re just based on emotion right. And so, what I typically do is, I’ll look okay here’s the base, and what I’ll tell myself is the next time the stock falls below this particular base, that is a great opportunity to buy. And I’ll show you why. So, look at this one for example; in this case right. So, imagine I just saw this coin tank price tank to 285, I draw my base right. Then I watch it goes all the way back up, goes back up to 309 okay, then we start to see kind of a slow decline here and right about right here, it actually drops below 285 right. All the way down below 285, and in this case if you could drop all the way down to about 271 right, and then what happens right after that? After it drops right below the base that we drew, its drops right below 271 right. it bounces right back up, and it actually goes way above the base right. it bounced all the way back to 311. So, think about that 271 to 311. That’s huge right? That’s a big trade. That’s a big gain. If you can get in. And so, where I would typically buy. Let me grab the pen here. I would typically, buy anywhere right below the base right. You see the base over here, drop below the base. This is all perfect buying territory right. if you would have bought anywhere here, here, here, here, here, anywhere down in here you would have made a safe and a good trade. And then on the way up, this stock comes up, comes up, comes up. Let’s just say you bought on the high side. Let’s say you bought 283, you can even wait so you get you know to 293 make a sale. You can wait a little bit more 295 make a sale. All the way up to 309. And of course, you don’t always know how high it’s going to go. So, what I typically do on the way down, I’ll typically nibble. I’ll make small purchases when it’s you know…small buy right when it’s below the base here. And, a deeper it goes, the farther down it goes, the maker the trade, the bigger position. So, I’m taking that same thing on the way up. On the way up you know, I probably would have sold if I would have bought like right here 284. I may have sold you know, 294 something like that. Just to get some of my money back. And then I would have probably you know had a few positions open to selling, as this kind of went all the way up okay. So, that’s kind of the basics of how I do base trading or reaction trading.
13:47- ANOTHER EXAMPLE OFA BASE
Let’s take another example here. I’m drawn all over the place of this marker. So, let’s go again okay… so, let’s scroll over just again. So, okay we’re going, going okay, there’s another base right here right. let’s draw that, I’m not going to draw that one right now, but you could be ideal. So, there’s another base right. The stock goes up price goes all the way back up to 311. Get my pencil here all the way over to 311 right here. And then okay, it’s going down again. Starting to go down, starting to go down, starting to go down. Technically, I could have marked this as a base, but it’s a very low base, or I’m sorry its very small base, but let’s just do it for the example, I’m trying to show here. So, technically speaking, I could have marked that as a base right. sorry that’s not a very good one okay, let’s just say that’s a base right. Drops you know didn’t drop a whole time, but for the sake of this example, let’s just draw it. Then it bounces up bounces all the way back up, again 311 right. then what happens? It’s going down, down, down, down, down, down, down, right. when it cracks the base right here, about 295 this time, it goes down to one 292. So, not very much room to buy there, but again you’ll see it bounces right back up, back to 308. I probably wouldn’t have bought it, or purchase anything at that point, because it was just too small of a base right, but I’m just trying to articulate the point here to you. so, let’s do it again okay. So, we have another base here, that’s the new base right? it goes up, up, up, up, then starts dropping again. Oh! look what happens, it cracks the base. I would buy all within here, cracks the base and what happens? It goes all the way down oh! shoot all the way up again, right about the base. Think about it, if you bought at 283, you could have sold. You know around 300 not huge, but again another game. And these small gains, some of them are so small. I’d say they’re probably between you know 6,8% maybe 5-10% all the way up to you know 50,100% depending on what’s going on in the market. I’ve seen some pretty crazy fluctuations. So, anything okay, let’s put that back there, so that’s buying area okay. So, now let’s look at this again. So, you draw your base, you keep going, keep going okay. So, now oh that’s my new base, went all the way down to about 274 right. Okay, so I marked my base, I’m just going through again, going through again, and in this case, you’ll see. Okay, this is when just a few days ago. Actually, Ethereum just kind of shot up, and shot it all the way to around 345 pretty good right. It’s going back up. So, I didn’t really do anything around here right, but if you look at this again, look I want to show you again. So, we got you know…It’s dropping, dropping, dropping, dropping, and technically, there’s a kind of a small base here, but not very good. You know let’s see, you’ve got a base over here. I’m going to call you know there’s not really great bases here to speak of so, let me go to a different chart here. Let me see if I can find an example of ones, that I’ve actually traded. Let’s go to NEO. I traded NEO not too long ago. Okay, so this is actually a pretty good chart, pretty good example out. this is a really great chart. Okay, so I’ll just start maybe right on here, and you can see this every time. I mean this is just craziness, and if you could time this right, if you can learn this technique. You can make a lot of money in this market right. Okay, so let’s just say that you know we have a base right. We’re seeing a drop, drop, drop, drop, drop, and then we kind of seen another uptick right here right. There’s a pretty good uptick right there. So, I marked that base and I wait. [inaudible, 17:34] Oh! still trying to get, trying to get, used to trying to get, sorry about that. Alright, pull this over a little bit. Alright, okay so again you’ll see goes up, goes down. This is your base. Drops below the base, and this case goes down to let’s see about to137. And then what happened? Immediately after it goes up to 163. That’s a huge percentage right. That’s like 20% or more. If you could get it, you know grand in there at 20%, you made 200 bucks in the matter of like a couple hours right, not bad. And the same thing consistently happens throughout these charts over, and over, and over, again. Here’s another base right. This time it goes up, goes down. We have to wait a little bit longer. Let’s see, that was on a August 15th, but look it goes up again right, past the base. And in this case, we had to wait to August 17th. So, took two days to go back to the above the base, but you know that’s fine. That’s fine we have a little bit of time to wait. And here’s where I actually made a couple trades, I’m not sure if you can see this very well, but this where I made actually a couple trades right. so, I was watching, watching, watching, went up. I had this as my base at the time, it went down, went down, went down. I got in at about 118 approximately. And I sold at about 129. Not huge, but about 10% right. [inaudible,19:08] I specifically put in that position, but 10% not bad. Another time it happened same thing here right. So, I draw my base again. My bass is right here, and again what happens? You know after I sell this was like kind of right after one another. It drops again, and what does it do? It goes right below the base, and almost got it at the bottom. The bottom was 106. I got in about 112 could be on a little bit lower. What happened? It bounces right back up. And in this case, I sold at 126. Took another about 1012 30% something like that, but I could have you know waited till when I went to 14 and got a much larger percentage, but you never know when that’s going to happen. So, I try to like I said taper my cells right, my bags, and my cells really that’s another example.
19:53 – MORE EXAMPLESUSING NXT CHART
Let’s go to one other chart. And let’s go to NXT I think. I have a…see if I got a trade on here too. Actually, maybe not on this one. Let’s see another NXT. Yes, I did. Okay, here…so here’s another one again very, very, very, exactly same concept. So, in this case, it was dropping, dropping, dropping, dropping, dropping. And I thought okay, it’s dropping there’s got to be a base. And I was kind of marking, watching bases all along the way. This was the base. The bottom base, if you will and that’s where I kind of marked my chart. Then you see jumps right back up. Then it starts tanking. I noticed oh! It’s tanking way below the base. So, what did I do? I waited, waited, waited, in this case, I waited a little bit too long. You can see I traded here kind of on the uptick where I would have preferred right to buy more like down here towards the bottom of that drop right, but you really could have purchased, or bought anything really right, anywhere around here right. And that’s what I did. I bought right here at about 2491 and I saw…I started selling at about 2895. And I all the way up from there 2921,3069. So, again big percentages you know, and you could do this over and over and over and over again. So, anyway I just wanted to show you that that technique. That trick that I’ve been using. This is not something that I invented, it’s not new. You can go look at it. Go research it a bit more. Learn about it. I’m going to teach you about this technique, going through these videos as you know. I keep developing these videos and teach you a little bit more about other techniques. There’s another site that I want to show you about as well. I’ll show you probably the next video, or after. Where it allows you to mark-up charts, save them, share them so forth and so on. But anyway, hopefully you found this useful? This has been incredible, incredible way to trade cryptocurrencies for me. It’s really changing my life as we speak. I’m making you know more money on a daily basis now in the cryptocurrency market that I have in many full-time jobs. So, I’m quite happy with it. And I think there’s a lot of promise here. I think the market, in general, is just going to going to really go up a ton. So, anyway drop me some questions, if you have any questions about this technique, the strategy, let me know. If any of you have done this before, let me know as well. I’d love to know what charts you’re marking up. What coins you know you’re investing in. so, that we could kind of trade tips. I’ll post this video on steam it, on my blog, and I would love to hear you know how you guys like this strategy. if it’s helpful for you. I’ll be back later, see you guys.
