When crypto spikes, exit the market

[lornadane]

This makes a lot of sense imo. Most newbies do the opposite: they buy because price is spiking, not realizing they’re late to the party. Taking profit into strength is usually smarter than chasing green candles. It’s boring, but it keeps you alive long term.

[Agbamoni]

But they do not consider it the other way round. Loosing money is One thing, but loosing it in seconds is more emotionally disastrous.
In a situation where you see Spikes like that not only iin crypto also in forex the best thing to do is just to avoid the market at that particular moment. Trading news also it's a bad idea as well

I hate the spike; the loss is huge, but if you win, it is huge. You need to be prepared for what is to come when you choose to chase Spike.

The speed of the loss is what hurts the most. No one wants to lose so quickly; it will ruin every strategy you plan for the day. Not trading when there is extreme volatility is the best option instead of chasing a spike.

[jossiel]

Not trading when there is extreme volatility is the best option instead of chasing a spike.

I agree on this. It's best not to do anything at all when you're seeing the market experiencing high volatility.

This is to save you from potential losses that you might react upon with when you see it. But anyone who's been doing any reaction like buying more at these times, they know what they are up to.

On the investors perspective, they see it as a window of opportunity if they're seeing that volatility leads to dumping.

[tvplus006]

...Not trading when there is extreme volatility is the best option instead of chasing a spike.

High volatility is dangerous for traders only if high leverage is used and risk management is ignored. For an experienced trader, increased volatility is attractive because during such periods the market provides an opportunity to earn a good profit.

[Cyber_warrior]

This makes a lot of sense imo. Most newbies do the opposite: they buy because price is spiking, not realizing they’re late to the party. Taking profit into strength is usually smarter than chasing green candles. It’s boring, but it keeps you alive long term.

Newbies don’t really understand the market, they don’t really understand how things work. When the market is down, most of them are always scared to enter the market because they always think the market is going to drop more, and they don’t want to lose money. You going to see most of them enter the market when there is already a spike in the market, they believe thats just the best time which they are suppose to enter the market. They don’t really know that real traders do take their profits when there is a spike in the market, and that’s not when they do enter the market.

[@nn@_pen9]

Exactly right, Indeed, in this case we have to determine what price target we want to get realistic profits from both Bitcoin and altcoins. Don't let greed get the better of you, as we know the crypto market is highly volatile and completely unpredictable. Spikes can stem from hype, news, or even market manipulation, and they don't always mean a price peak. Usually, most of them are trapped by their own greed which still holds that their assets will soar again and in the end, regret is what comes to them.

[pusaka]

...Not trading when there is extreme volatility is the best option instead of chasing a spike.

High volatility is dangerous for traders only if high leverage is used and risk management is ignored. For an experienced trader, increased volatility is attractive because during such periods the market provides an opportunity to earn a good profit.

The key is in risk and financial management. Sometimes people want to make high profits by applying very high leverage. Even though it is a very wrong thing, indeed if you only look at the benefits that we can get then it really makes us want to do that. But in trading the risk is also very high, so we have to adjust too.

Another key is that we should not only see the benefits but we must see the risk of loss that we get. I don't think anyone will succeed if someone only looks at the benefits that can be obtained.

[puloweh555]

This makes a lot of sense imo. Most newbies do the opposite: they buy because price is spiking, not realizing they’re late to the party. Taking profit into strength is usually smarter than chasing green candles. It’s boring, but it keeps you alive long term.

This is a mistake many beginners make when they're just starting out in crypto they don't study market history and often enter when the cycle is over. When the entire crypto market is in a phase of consolidation and massive accumulation you enter and hold on. Buying Bitcoin might not be the case but the problem arises when you buy at the highest price in meme coins. This carries a very high risk.

So make sure your position is ready before the market moves up, not the other way around and end up at the top forever. So when trading altcoins especially meme coins when the price soars and reaches its all time high it's best to exit.

[Adbitco]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

In whatever ways, a trader should be able to know their exit and entry points while trading because whenever the market spike and they didn't take profits while trading the next is they could see the opposite of the market which would definitely leave such traders in full regret for not at least taking profits while trading. However, what you must also know is that there are people who makes profits while the market is down, I mean when there is strong bear run, those who is trading on future and Binary option to using a long/short position to enter the market.

[bangjoe]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

In whatever ways, a trader should be able to know their exit and entry points while trading because whenever the market spike and they didn't take profits while trading the next is they could see the opposite of the market which would definitely leave such traders in full regret for not at least taking profits while trading. However, what you must also know is that there are people who makes profits while the market is down, I mean when there is strong bear run, those who is trading on future and Binary option to using a long/short position to enter the market.

This is similar to the concept of buy the dip and sell the top, and also the term that we often with in the market that enter when it's quiet and exit when it's crowded, this term is not just limited to nonsense in any market, and the concept of thinking like this also has a correlation with the theory of bubble economy.
Who can get in at the bottom and get out at the top price is the one who will get a big profit, here we must be like a thief at night who is smart, get out after getting enough to carry and not be greedy because it can be fatal because the market can turn around easily.
Still it is difficult in derivatives trading even more difficult than spot in my opinion, because of the risk and volatility that cannot be predicted, a lot of traders this year lost more than traders who made profits but if you understand stop lose and TP traders like this are safer.

[Rabata]

This makes a lot of sense imo. Most newbies do the opposite: they buy because price is spiking, not realizing they’re late to the party. Taking profit into strength is usually smarter than chasing green candles. It’s boring, but it keeps you alive long term.

This is a mistake many beginners make when they're just starting out in crypto they don't study market history and often enter when the cycle is over. When the entire crypto market is in a phase of consolidation and massive accumulation you enter and hold on. Buying Bitcoin might not be the case but the problem arises when you buy at the highest price in meme coins. This carries a very high risk.

So make sure your position is ready before the market moves up, not the other way around and end up at the top forever. So when trading altcoins especially meme coins when the price soars and reaches its all time high it's best to exit.

Some people sell when the market is suitable for buying and dream of more profit when it is necessary to sell, which is why investors also accept losses. If someone can hold Bitcoin for a long time, any time is suitable for that. But in the case of any other coins, the situation is different. Investing in meme coins is a loss if it is held for a long time. A new investor should be strong in his mentality before entering the market. He should take a decision considering the market conditions. When the market is in an upward trend, one should not take a new trade greedily because there is a high possibility of fall the market. Similarly, even if it is bearish, one should wait for some time and take decision.

[esc1993]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

Remember, Early birds get the worms.

In fact, this is very difficult to do—including for me. Lately, I’ve been thinking a lot about how to detect the movements of major players and intercept them along the paths they must take when they launch an attack.

[Mandoy]

This makes a lot of sense imo. Most newbies do the opposite: they buy because price is spiking, not realizing they’re late to the party. Taking profit into strength is usually smarter than chasing green candles. It’s boring, but it keeps you alive long term.

This is a mistake many beginners make when they're just starting out in crypto they don't study market history and often enter when the cycle is over. When the entire crypto market is in a phase of consolidation and massive accumulation you enter and hold on. Buying Bitcoin might not be the case but the problem arises when you buy at the highest price in meme coins. This carries a very high risk.

So make sure your position is ready before the market moves up, not the other way around and end up at the top forever. So when trading altcoins especially meme coins when the price soars and reaches its all time high it's best to exit.

Some people sell when the market is suitable for buying and dream of more profit when it is necessary to sell, which is why investors also accept losses. If someone can hold Bitcoin for a long time, any time is suitable for that. But in the case of any other coins, the situation is different. Investing in meme coins is a loss if it is held for a long time. A new investor should be strong in his mentality before entering the market. He should take a decision considering the market conditions. When the market is in an upward trend, one should not take a new trade greedily because there is a high possibility of fall the market. Similarly, even if it is bearish, one should wait for some time and take decision.

I agree with this view. The majority of the novices venture into the market at the improper time as they follow through the hype rather than learning cycles. The accumulation phase of buying and the strength phase of selling is typically the less risky one. Bitcoin can be long-term because you have to know its principles but the rest of the altcoins and meme coins are not the same. It is usually smarter to exit when the prices reach all time highs. Much more important than emotions or greed are discipline, patience, and mindset.

[shawonngp]

If you have invested in altcoins and the price spiked, you can take profit, you can also take profit from your Bitcoin investment if you want to but the major concentration should be altcoins before the price can be more volatile than Bitcoin price and Bitcoin is also very solid than altcoins. There's this advice that if you don't want pump dump asset, don't buy every altcoins. So, if you bought some altcoins without any real utility purpose, it's good to sell when the price is good.

I bought Bitcoin as long term investment, I didn't sell my Bitcoin when it price was spike, when i am getting 5% profits if make instantly sell from my holding coin,
Don't scare with BTC holding If you are long time holder, Altcoins investment is risky, If don't exit the market in right time, This chance will come again, there are no guarantee, It's high volatile, I don't delay to take profits in altcoins spikes.

[tottong]

Whatever you might be trading, bitcoin or memecoins, when the market spikes take it as a sign to leave not to enter the market. That should be the time where you know you have an edge over other traders because you were able to take advantage of when the market spiked. You were exactly where you were supposed to be. That is before the spike not after it.

It depends on the level of volatility, as people tend to enter the market based on the performance of a particular coin. What trend is it in? Typically, when the market is stable, people won't participate for a while and will generally wait for a direction to enter their positions.
Most altcoin markets are driven by several conditions, whether news or luck, so you need to do your due diligence to find the right position to enter the market.

Trading in Bitcoin and altcoins is inherently risky, as inability to read the market's direction can be problematic, especially when trading futures.
Even professional traders often get caught up in futures trading, but they have the ability to navigate the pressure, let alone someone without trading knowledge or skills well then it will be much more difficult.

[Uruhara]

This makes a lot of sense imo. Most newbies do the opposite: they buy because price is spiking, not realizing they’re late to the party. Taking profit into strength is usually smarter than chasing green candles. It’s boring, but it keeps you alive long term.

If we understand technical and sentimental analysis well, then price spikes are not always a signal that we should exit.
I personally used to think that way too. However, after understanding basic analyses such as understanding chart patterns well, understanding the functions of support and resistance, and understanding how to read several indicators that can help us, we will begin to understand that sometimes price spikes can even be a signal that we should enter. An example is when resistance has been confirmed to be broken. Usually, the price will continue to rise to reach the next resistance level. There are many other examples.