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Author Topic: How to not panic during a dump and continue to make profit  (Read 25512 times)

Offline Gunthar

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How to not panic during a dump and continue to make profit
« on: April 07, 2017, 10:30:20 AM »
How to not panic during a dump and continue to make profits

            Ok, this is probably the most waited topic of this thread so I'm going to be straight: when a dump starts there is nothing you can do. It will continue until the last penny has been sold. I will give you 2 weapons to fight the dumpers: a psychological one and a technical one.
  • Understand that trading is possible only because the price goes down and then it goes up. If it goes only up or only down, you can't trade. None would. So, take the bears as a part of the scenario. Accept it. Like it. As the price goes down, you know it will go up again, over and over. Oh wait....your GUNBOT bought when the price was up? Ok then, here to you the solution:
  • The Bollinger Band: Poloniex was smart enough, they gave us another indicator to trade with crypto. What is the Bollinger Band exactly? It is an indicator of the volatility of the coin, related to the quantity of trades volume in a given instant. Open your Poloniex graphic and enable Bollinger lines, you will see something like this:

               The larger the Bollinger Band is the more volatility on the market. As the Bollinger Band tights, there is less volatility. Said that, how to use the Bollinger Band? Well: it is a technical support to your weak morale because of a dump. Look the next picture:

               The Bollinger Band is used to identify the entry point to buy and to sell in a certain strategy. Whenever the candlesticks cross over the Bollinger Band, there is a change of the trend. If you look at yellow arrows I drew, after any yellow arrow, there is a bullish trend. Now look at the next picture:

               After any azure arrow, there is a bearish trend. The right moment for a change of the trend is when the candlesticks exit and THEN enter back inside the band. Sometimes they get very close to the band and the trend changes without crossing borders. Use the Bollinger Band to be aware of what is going on: it is a dump, yes, but you know exactly when it will stop and you know exactly when the bear will turn into a bull. Stay calm...take a deep breath....and don't stop the GUNBOT  :D
              So, do you like it? Did you ever see this? If yes: did you ever use the Bollinger Band as a tool to be aware you are not losing all your money and you don't have to stop your bot but it is just the wonderful world of trading going on? Well, now you know it...if you need more help on this, just shoot me a PM and please again...don't stop your GUNBOT, let it do its job for you...I didn't code emotions in it...  ;)