Never catch a falling knive

[DJANAS]

i don't understood what do you mean, but i think that you are trying to say that we should not buy bitcoin at this time because of the red Candel

[virasog]

Sometimes catching a falling knife works and can give good profit. Let suppose a coin is dumping fast and you bought it in the middle of the dump. Very often we see that after the straight dump a big wick is created and price bounce back. In that case, if the price bounce back, we can take profits. However if the price keep dumping, then we would be in a loss.

[FanEagle]

Well it will surely hurt if you catch the knife while its falling but there's also a saying "no pain, no gain" so I think it depends on your belief and how you look on bitcoin.

We reach another ath, but dont you believe that we can surpass it in the future? Its risky to buy at high price but if you're planning to hold it for long period because you believe that there's so much more to look forward then I think its fine, its not too late for new investors.

Although its really true that dont buy at peak price but just like I said it depends on investor's belief. Thats why its a must that each of us understand the movement and has knowledge about crypto as a whole.

Don't buy at peak and don't buy while it is going down are different things. If you bought at 60k, that is not ideal and that is of course not a good price to buy when you look at it now, although many people said the same thing at 30k as well so I can't say it was a bad decision at the time neither, but if you bought at 45k when it dropped from 60k that is a good one, that is not a bad situation and I think it is really a good idea to buy when it dropped over 25% drop.

Many people that got in during 2017 learned that a drop doesn't mean a bad thing, it means a good thing will about to happen and you have a discounted bitcoin price right now and you could get more money eventually from it. I have been around even before the 2014 increase so I can tell you that all decreases are followed by a big increase and that is why I think it should be very easy for you to get in when it is going down and waiting for the price to go up.

[redsun114]

If you are not familiar with this term, just look at the bitcoin price as now.  There it goes!

Sometimes you don’t know when a knife is falling lol the knife might not really be falling; there are times the market will drop a bit and people will think that’s it, but in a short time it will start going up.

I can remember what happened around $40,000 price, most of us believed that that’s the limit when it got there and started falling to $30,000 and dropped that low, and within a short while it moved again back up and passed through the $40,000 rate to $50,000. So, I guess this is a magic knife lol. But anyway, you’re right, it’s usually best to invest at a time when the market is cool, because a during a bull market you can’t tell when it will fall.

[South Park]

Sometimes catching a falling knife works and can give good profit. Let suppose a coin is dumping fast and you bought it in the middle of the dump. Very often we see that after the straight dump a big wick is created and price bounce back. In that case, if the price bounce back, we can take profits. However if the price keep dumping, then we would be in a loss.

Even if it s true I think it makes sense to not try, there are market conditions in which the best you can do is to simply to not involve yourself, the cryptocurrency market is famous for its volatility but markets in general are even more volatile when they go down, so while you think you bought at the bottom the bottom could still be very far away and then you lose a lot of money when you had no expectations of this happening, it is better to just wait and see if the market becomes stable, if it does then you can buy knowing the market will not crash as much anymore.

[darewaller]

i don't understood what do you mean, but i think that you are trying to say that we should not buy bitcoin at this time because of the red Candel

Yes, he means when the price is falling don't buy BTC because the price might go further down in coming time. I kind of agree with him in general but exceptionally for BTC I would never agree on such thoughts because BTC has shown how many times it goes down and then grows again.

Sometimes catching a falling knife works and can give good profit. Let suppose a coin is dumping fast and you bought it in the middle of the dump. Very often we see that after the straight dump a big wick is created and price bounce back. In that case, if the price bounce back, we can take profits. However if the price keep dumping, then we would be in a loss.

I don't think many altcoins are able to achieve that because once they start falling, almost no one wants to hold those coins. Like recently when SEC issues were known to traders they immediately sold XRP and the price went as low as $0.2 or so and it managed to recover because of the humongous market cap but a small coin won't be able to replicate that.

[fahmimajannat]

Yeah its too dangerous. When a market crashes never try to enter the market.
Wait and observe the market so that you can hit the market at the right time.
When market starts to going up again than enter the market.
So that risk level stays in habit able zone.
Don't get emotional while market falls.
Try to enter when market starts to rise.

[MiningBattalion]

Well, a lot of newbie traders would like to argue with you. They want to jump onto the last carriage of the departing train and see no variants but to be in a furry and to take some loans or to start mining immediately even if it is mining from an old-old notepads without appropriate equipment.

A falling knife is a colloquial term for a rapid drop in the price or value of a security. The term is commonly used in phrases like,Falling knife refers to a sharp drop, but there is no specific magnitude or duration to the drop before it constitutes a falling knife.A falling knife is generally used as a caution not to jump into a stock or other asset during a drop.Moreover, even buy and hold investors can use a falling knife as a buy opportunity provided they have a fundamental case for owning the stock.

[Yatsan]

There are certain risks and danger of course upon catching a falling knife and mostly those who fall into this are barely newbies for the attempt on grabbing what they see as opportunity ends up on having the contrast that is why they ate gaining losses. But sometimes even if they tend to catch such falling knife of the market, still they are being patient to wait up until price recovers but still there is no assurance on risking your funds into such but you will be lucky once it became favorable to you. Patience is really a must as well as thorough observation on the market movement to see if you will be entering or wait up a little bit more.

[Fatunad]

Well, a lot of newbie traders would like to argue with you. They want to jump onto the last carriage of the departing train and see no variants but to be in a furry and to take some loans or to start mining immediately even if it is mining from an old-old notepads without appropriate equipment.

A falling knife is a colloquial term for a rapid drop in the price or value of a security. The term is commonly used in phrases like,Falling knife refers to a sharp drop, but there is no specific magnitude or duration to the drop before it constitutes a falling knife.A falling knife is generally used as a caution not to jump into a stock or other asset during a drop.Moreover, even buy and hold investors can use a falling knife as a buy opportunity provided they have a fundamental case for owning the stock.

Some might be seeing this falling knife as a threat or a warning but actually this is really an opportunity for someone to take but we know that there is always accompanied with risk
You wouldnt know on how deep would be the fall is and there is no specific percentage for a certain situation to be called as falling knife as you mentioned this is why its up to someone
on what are the decisions he would be making on that particular time.Some do panic sell out without minding the opportunity that they can actually buyback for them to recover up
the loss somehow.Mistakes are common but we shouldnt limit out ourselves on taking out chances that can really help us out.

[Kelvinid]

There are certain risks and danger of course upon catching a falling knife and mostly those who fall into this are barely newbies for the attempt on grabbing what they see as opportunity ends up on having the contrast that is why they ate gaining losses. But sometimes even if they tend to catch such falling knife of the market, still they are being patient to wait up until price recovers but still there is no assurance on risking your funds into such but you will be lucky once it became favorable to you. Patience is really a must as well as thorough observation on the market movement to see if you will be entering or wait up a little bit more.

We usually putting newbies as an example but I think, not only them doing this because even those who have been in the market for so long they still doing the same. It is to understand how risky is this crypto-investment, FOMO, FUds, these people seem to be easy to twist their mind and think negatively.

But anyway, not all are here in crypto understand the situation they face about. Many crypto investors never had the knowledge, they are investing in Bitcoin/altcoins is because someone tells them and it is not to wonder why they will make wrong decisions.

[justdimin]

Well, a lot of newbie traders would like to argue with you. They want to jump onto the last carriage of the departing train and see no variants but to be in a furry and to take some loans or to start mining immediately even if it is mining from an old-old notepads without appropriate equipment.

Rightly said, what makes investing in Bitcoins a lot different than catching a falling knife is that a falling knife is coming down and destined to hit the bottom without any chances of ever going back up while Bitcoin has a tendency to go up and down more than 100 times within a day itself and this logic doesn't make sense in the bitcoin market.

We must understand that not all the statements made are correct in every situation and market. The king of investments and the stock market, Warren Buffet once said that Bitcoin is useless and has no value and even made some vague comments against Bitcoin. Now looking back, I am sure he sounds like a fool but actually he was making comments based on his knowledge but without respecting that he doesn't have all the knowledge in the world himself and should not criticize Bitcoin without actually understanding it.

[tygeade]

It was always obvious that people who think that bitcoin is crashing a lot and sold their coins would support others to sell as well, that has always been the case in crypto, if someone is losing money on it, they wanted others to lose on it as well. Practically that is not the case here, we have made a decent return from it but the reality is that just because we made a good return now doesn't mean that they have learned their lesson, just watch and see how people will panic sell and tell people to sell or at least not buy when the price is going low once again, and watch them regret not buying when it increases a lot.

If you didn't listen to OP and bought bitcoin when he told you not to do that, you would have been in profit right now, over 10% profit at that, so do not care anyone who says anything bad about bitcoin, always buy it as much as you can because in the end you will profit.

[Harlot]

It was always obvious that people who think that bitcoin is crashing a lot and sold their coins would support others to sell as well, that has always been the case in crypto, if someone is losing money on it, they wanted others to lose on it as well. Practically that is not the case here, we have made a decent return from it but the reality is that just because we made a good return now doesn't mean that they have learned their lesson, just watch and see how people will panic sell and tell people to sell or at least not buy when the price is going low once again, and watch them regret not buying when it increases a lot.

If you didn't listen to OP and bought bitcoin when he told you not to do that, you would have been in profit right now, over 10% profit at that, so do not care anyone who says anything bad about bitcoin, always buy it as much as you can because in the end you will profit.

This post was actually created during Feb 23 where Bitcoin dropped from 54,000 to 45,000$ and then continue dropping to 43,000$ until it recovered in March 05 so this time where Bitcoin is still on a rally upwards I wouldn't say that "don't catch a falling knife" is something that the newbies should be following right now. They actually have missed a good opportunity to enter the market or add some more position just for because a lot of people though the price rally of Bitcoin was over when in fact it was not.

[gaston castano]

and now bitcoin is back up and ready to go to a new ath, believe that this year maybe btc will touch 100k $ because the demand and positive news about bitcoin is very high we can see an explosion like 2017 again maybe.
where btc increased by more than 10x from the beginning of the year to the end of the year.

[tygeade]

We usually putting newbies as an example but I think, not only them doing this because even those who have been in the market for so long they still doing the same. It is to understand how risky is this crypto-investment, FOMO, FUds, these people seem to be easy to twist their mind and think negatively.

Some newbies have a better understanding of trading and possess more skills than an experienced trader and that is just by default. Some people are rigid and no market FUD can shake them while some despite being experienced will doubt their asset holdings just because there is some FUD being spread around the internet.

Many crypto investors never had the knowledge, they are investing in Bitcoin/altcoins is because someone tells them and it is not to wonder why they will make wrong decisions.

Most of the large scale investors put their money into an asset when they understand the value of the asset and its current market price. They analyze how the value of bitcoin looks in the distant future and then look at the current market price, if there is high variance, they will usually invest in such assets.

For example, most of the investors started realizing years ago that land/houses are going be to more valuable in coming years as population jumps and hence real estate was high value.

[shushu9977]

Yes, this is good for investment, because if anyone buys in high price, then it will be against his investment. So, be keep patience and wait for our bitcoin price as you want. But, in my prediction,  at the end of year, the price of bitcoin will reach 80k/90k.

[sana54210]

We usually putting newbies as an example but I think, not only them doing this because even those who have been in the market for so long they still doing the same. It is to understand how risky is this crypto-investment, FOMO, FUds, these people seem to be easy to twist their mind and think negatively.

Some newbies have a better understanding of trading and possess more skills than an experienced trader and that is just by default. Some people are rigid and no market FUD can shake them while some despite being experienced will doubt their asset holdings just because there is some FUD being spread around the internet.

Those type of "experienced" traders should not be traders at all, that doesn't make sense. I have seen people who are amazing at math, like seriously they can make calculations faster than my calculator to a certain point, and they know what they are looking at as well, I have been "trading" for 8 years now, and I can easily say that if that person started trading today, he would be better than me in a month.

This is a potential for him, but proof that I should not be trading, thankfully I just trade based on whatever I feel and almost all my money is just holding crypto, I do not trade them, just bought them and holding them, rest is a small tiny amount (400 bucks today) that I trade and sometimes it grows bigger and sometimes it gets smaller, last I had to spend money on that was when it was all in erc20 and there was a lot of money required to get it out, and I did that thankfully, but I am not a good trader at all.

[Eduarop]

It was always obvious that people who think that bitcoin is crashing a lot and sold their coins would support others to sell as well, that has always been the case in crypto, if someone is losing money on it, they wanted others to lose on it as well. Practically that is not the case here, we have made a decent return from it but the reality is that just because we made a good return now doesn't mean that they have learned their lesson, just watch and see how people will panic sell and tell people to sell or at least not buy when the price is going low once again, and watch them regret not buying when it increases a lot.
If you didn't listen to OP and bought bitcoin when he told you not to do that, you would have been in profit right now, over 10% profit at that, so do not care anyone who says anything bad about bitcoin, always buy it as much as you can because in the end you will profit.

This post was actually created during Feb 23 where Bitcoin dropped from 54,000 to 45,000$ and then continue dropping to 43,000$ until it recovered in March 05 so this time where Bitcoin is still on a rally upwards I wouldn't say that "don't catch a falling knife" is something that the newbies should be following right now. They actually have missed a good opportunity to enter the market or add some more position just for because a lot of people though the price rally of Bitcoin was over when in fact it was not.

How things have changed in last three weeks. Those traders who were trying to “catch that falling knife” in February are trying to catch new BTC’s All-Time-High in March. BTC really can hurt like a knife but it can to please by good grains also.