What's going on everyone? My name is Nicolas Merton here at day, two in today's September 20th of 2017. Well, folks, it's time to get on this channel to go through another trading tip, and today I want to answer a question that I get a lot from users in my community Nick.
How do I time markets? I've had so many questions such as Nick. You know when do I know when a market is gonna, be over block and what is it time to cash out of my position and then also when do I know when a pullback is coming and how do I get in at the lowest price possible? Well, folks, I want to be real with you first I can let you all know that you'll, never be able to time markets perfectly it's, a proven fact there's, rarely any individual who'S gonna be able to buy right at the exact low price and sell it right at the top it just doesn't usually happen, so realizing that I want to go ahead and show you all some tips that I personally use to time.
Markets, for example, we were able to call the past two tops and Bitcoin. If you go back in my videos, we've, had a pretty consistent track record with being able to time the market and be able to swing trade it.
So how are we able to time the market better, even without even using indicators? It's, pretty crazy. Sounding right. I'm gonna share with you all the top 3 tips that I use to time to market better, even without indicators.
The first one I want to talk about is the big evens. You & # 39. Ve probably heard me mention it on my videos and livestreams before, but the big evens are one of the most simple price strategies you can use to know when markets are overextended or oversold.
So let's go ahead and talk about that. So, for example, in this case, we saw Bitcoin originally on its its first major bull run of the Year, gets topped out at 3000. Now we've, been talking about on my channel about how 3,000 was a very big.
Even now. How are we able to call that relatively perfectly? We saw that you know it hit 3,000. We said guys be careful about it and then, after that, it's sold off the reason for that is because it's.
A part of human psychology and markets, you really have to learn about human psychology. If you're gonna be doing trading and one of the first things that anyone will tell you is that humans like to buy and sell at big events.
It's, a weird thing about us in markets, but you'll, find that a lot of the time. If you look at the order book there's, massive sell order at big, even numbers comparative to random numbers. So, for example, what would you be more likely to buy an app thirty dollars or thirty? 150? You know.
Thirty dollars is more common. It's, a big even number, and the larger you get in the sense of where you get to around thousands. For example, at this case, where we saw three thousand as a level, you're, going to have large cell walls that need to be cleared by individuals on the buy side, and sometimes there's, not enough power to come in, not To mention markets are usually overextended if you're, looking at these big, even values up ahead of the current price.
So again, three thousand was a clear, sell, side action. We saw a drastic selling all the way down to twenty two hundred and then a continuation down to eighteen hundred as well. So it was a very big pullback and the same up here around five thousand five, thousands, a very big number.
If you looked at any exchange, the order book was slammed with sell orders at five thousand again. Human psychology always be a few steps ahead and be a little less greedy than those who are just like.
Well, I'm. Just gonna sell five thousand. You know we want to be able to sell, maybe around four thousand nine hundred or four thousand nine hundred fifty, depending on your risk profile, but always get out a little bit before those big evens and if it clears through it, you can get right back in And hopefully, ride out for the bull run that might be continuing afterwards so again, and the same goes with the sell side as well.
Three thousand, for example, at the bottom, is a big. Even eighteen hundred, though we weren't gonna go all the way to a thousand. Some people thought we were. You look for the hundred levels in that case, for example, if you get something at three thousand, so eighteen hundred we didn't call perfectly what we did believe that we did aleast get below two thousand and generally, that's, where We went so was a 33 % pullback generally speaking, again always look for the beginning.
It's, a big help, factor in trying to time the market. The second one I want to talk about is previous price levels. This is something that you get as you go through inform market history, so, for example, BIC ones been on a stellar run up over the past year and a lot of people were telling me.
You know I connect when we're up here and stuff. A lot of people were overexert and they said Nick BIC, one's, never gonna pull back to the levels you're talking about a thirty four to thirty five hundred and we actually pulled back further.
I said. Not only could we go to thirty four thirty five hundred, but we can get a full pullback back to this previous resistance level. So why did I think that? Because previous resistance usually tends to become support and we'll find this as we go through and look at this rap, you can find it in multiple cases.
How do we know this? Well, let's. Go back to this pool about how this run up over here we had the initial run up in Bitcoin to 3,000 and look. We got some support here around the 8. I think, though, actually the bottom of it was at around 18.
You see what was the price there 1830. Well, where are we seen this as previous resistance in the past right here again? This is why, when I was talking to you all over here, I said that this might be where we find support, but it turned out actually that we pulled back all the way to the most bearish bearish potential price possible, which was over here at 3000.
A big even remember, big evens matter as well, so we pulled back what was previous resistance. We had resistance here and resistance here was now support again very common principle. Previous prices, especially previous resistance, tend to be support.
After you & # 39, ve run past them and you're looking for a pullback. So when we have the next run-up, whenever it is, I don't know if it's here, yet look to see if once we may be past six or seven thousand on Bitcoin, we might get a pullback to 5,000 could happen In the past, it's, not guaranteed again, just like how indicators are guaranteed, but it's, a common thing in markets, previous resistance usually becomes support, and the third thing I want to talk about - and this is something that you generally Have to have some street smarts with and you got to stay active would, and this is simply looking around and seeing it everyone claims to be a genius.
I know that seems kind of silly well. What does that mean exactly when you start looking around and you start seeing the headlines? Flash Bitcoin gonna rally bitcoins gonna rally to 10,000, everyone's, making money left and right - and you know, for example, you'll, see people who'll, be like yeah.
I'm up 50 %. This year and the markets up a hundred percent, and then everyone thinks they're geniuses and they're making money, even if they're on the losing side of things. That's. When you should be a little bit worried on markets, the markets have gone up two or three times their previous valuation at the low that's.
Usually, when you want to look for, you know, cashing out some of your positions and then also the opposite goes as well, when everybody is absolutely in panic mode. When everyone's, losing everything and markets are down.
Forty to fifty percent, when the headlines are flashing, Bitcoin crashing, you know you know continuing to spread the flooding news. When everyone's, just panicking, you know going crazy. While you've been cashed out for a while calling to pull back.
You see everybody panicking and you're going to be there like it's, a it's a shopping day. Everything's off at a forty to fifty percent discount. Nothing's fundamentally changed time to buy in, and a lot of us did that on this channel, you know in our community.
I was advising people that again, I was waiting for thirty three hundred thirty four hundred and I bought in my first position at thirty three fifty I started buying up some altcoins and again made a great return up to this rebound.
Even though I didn't pick the exact low, I was able to time the market. I got out of my positions up here and got in generally at around the bottom. So again, no genius indicators needed it's. Just simply knowing these basic market the principles to know how to time when markets are overextended or oversold and to be a few steps ahead of the game and not trade emotionally with the market, we're riding against the wave of the market, the Markets overextended, we're.
Getting out market comes down, we get in, we're, not gon. Na ride down with the market, we're gonna get out early, and we're, also gonna get in when the market thinks that you know when the market seems like it's gonna collapse.
You know again it's, just simply cutting out the emotion and keeping these very simple principles in mind. Well, folks, that's it for the video. I hope you all enjoyed these tips today on time to market.
Do you apply them to your trading currently, and also, I want to be clear also as well. You can use us in investing as well. You don't need to always sell up here, but this could be a great way to know how to time markets in the sense of buying low and buying into all the funding and markets as well so anyways everyone that's.
It for the video I appreciate ya'll watching. Please leave it down a comment down below if you all want to see something covered on the trading tips videos, but until then everyone, I will see you all in the next video stay tuned.