Today I am going to show you how to trade SMART to maximize your profit while minimizing stress.

To trade smart you have to buy with the smart money (I) and sell with the smart money (II).

I- Buy with the smart money (review from previous articles):

The smart money buys recently-listed tokens (a) that are in accumulation (b).

a- Recently-listed tokens:

Here we’re looking at a token that has been recently listed on major exchanges such as POLONIEX, KRAKEN or BITTREX. The idea here is that most tokens (if not every token) will go through at least one good pump in price during their life cycle. By buying early you basically maximize your future profits once FOMO hits the market and late shoppers start buying at a premium.

Example of recently-listed tokens which haven’t gone parabolic yet (disclaimer, I owe some of these tokens):
TIME, BAT (Basic Attention Tokens), BNT (Bancor), CFI (CoFoundit), GNT (Golem).

b- Accumulation:

Review: Accumulation is the phase of a market-cycle during which the price action of a token goes sideways:

Accumulation is the IDEAL TIME to buy into a project.

This is the reason why I NEVER buy when price goes vertical and there is a big green candle on the chart. I come early to a market, I buy low and I wait patiently for the price to ramp up and explode.
Again, buying the green exposes you to buying tops and put you in the category of dumb money, you might get lucky but more often than not you’ll buy a top, panic then sell your bags at the bottom.

/!\ In accumulation, the price might vary +/-20% because of low liquidity, it' perfectly normal, don't panic-sell, ignore the noise, look at the bigger picture and BE PATIENT.

Now compare,

Smart money:

Dumb Money:

II- Sell with the smart money:

The smart money sells into strength (a) and scale out of a winning position (b)

a-Selling into strength:

Selling into strength means selling SOME of your tokens on a green candle to lock in profit according to a predetermined mental target (for example +200% in BTC vlue from my entry point).

It does NOT matter if you don't nail the top and the price keeps going up. First because you have kept some of your tokens, second because the most important in these high-risk crypto-markets is to make real fiat profit, not to be a virtual-millionaire.

b-Scaling out of a trade:

The idea here is not to go all out of a winning position but rather to sell your winners incrementally and let some ride as long term investment to diversify your portfolio if you believe in the project.
Now you can truly have strong hands.

Example:
1- You buy 200$ of ETH early at $10/coin (20 ETH), the price is in accumulation, be patient;
2- ETH is now up to 200$/coin, you sell 5 ETH for $1000 (risk capital: $200 + profit: $800);
3- Take the profit out of the market to your fiat bank account, keep the risk capital on an exchange to reinvest later;
4- You have 15 ETH left;
5- ETH is now up to $350/coin you sell 10 ETH for $3500;
6- Take the profit out of the market to your fiat bank account;
7- You have 5 ETH left, put them on a LEDGER as long-term investment;
8- Reinvest your risk capital in a different coin.

Now this is what it would looks like on a chart:

Congratulation you’ve made a smart trade.

Don't forget to follow and comments :)

Dan @tradealert