Do not hodl hot things

[Mpamaegbu]

When an asset is already the center of attention and heavily hyped, it is the right time to act—not to buy or hold, but to sell.

That's true, though we can expect divergent opinions on this. I guess it was Warren Buffett who said investors should learn how to go in when people are scared of investing but take profit when people become greedy. I go with that because I've witnessed it firsthand. Whenever there's hype, it only fuels the bags of early buyers who also are likely going to be taking profit as fresh hands get busy buying. That's why I've cautioned myself not to be buying hype and noise, except I'm already in before the hype.

[yhiaali3]

I liked this comparison between the perfectly intuitive "don't touch hot things" rule for our bodies versus its application in the world of investing, and it seems to work on both levels in the same way and is often true.

People are always rushing towards hot or hyped investments, but they are often disappointed because they have missed the train, because they often buy at or near the peak and get stuck for a long time and then maybe sell at a loss.

[Sticky Bomb]

If its bitcoin, hold for long sell for profit if the need is emergency.

As humans, we're supposed to prepare separately for emergencies and not let it catch us unawares, in bitcoin investment we need emergency fund while investing into bitcoin, it can be built alongside your investing into bitcoin. It's important so you can hold your portfolio for long and not be forced to selling at a time you didn't plan for.

If it is altcoin, buy at low with care because most of them will never come back up again. But if you have bought already, sell at the next possible point so as to make sure to profit and still get out.

I consider the second one as the "hot stuff" - because it can burn you down. I dont recommend altcoins but quite a few newbies end up buying some shitcoins now and then.

Altcoins are dead ends, the only time to buy Altcoin low is immediately it was launched, if it goes high and comes back low again, chances are high it's been dumped/rugged. I learned the hard way.

[ZAINmalik75]

I would say it depends on the asset we are holding. For example, if it's Bitcoin, selling when it's hot can surely bring you profits, but holding for longer could potentially get you better returns, and this has been proven in every cycle we have seen so far. Those who sold their bitcoins when it touched $69k first, got good profits, but those who didn't sell and kept holding managed to get way more than that in the next cycle when the price reached $126k in the recent bull run, which proves that it actually depends on the asset whether holding it even when the current value seems to be highest can be rewarding or not.

With that being said, what you are describing could be part of a different strategy, and I actually like that strategy as well. It is about selling when the asset is hot, and buying again when it gets cold, and keep repeating the same thing to keep getting more profits over time. For example, if I bought Bitcoin at $25k in the previous cycle, and sold them at $69k, and then bought again at $25k because it went there, and then sold at $120k in the recent cycle, I have now made more profits than someone who just kept holding from the first $25k purchase until it reached $120k.

[Josefjix]

People are always rushing towards hot or hyped investments, but they are often disappointed because they have missed the train, because they often buy at or near the peak and get stuck for a long time and then maybe sell at a loss.

The mistake of various investors in the space, the time that QNT got valued, almost everybody started rushing the assets as if it will continue maintaining increasing higher, why doesn't work that way.
Those who will mark the assets, wait for it to retrace back for almost 2 months, and then enter at their down level will certainly win in the trading.

[shinratensei_]

The truism "don't hold hot things" is perfectly intuitive for our bodies, yet in the world of investing, it is all too easily forgotten.
When an asset is already the center of attention and heavily hyped, it is the right time to act—not to buy or hold, but to sell.

True, not just any piece of junk makes for a great investment. If that were the case, the investment game would be quite boring—certainly not one of the most exciting human games, as it is today.

But every excellent investment looks like junk.
(Bitcoin has once again taught us this ancient lesson)

Kinda depends on the asset itself, if the asset has a good history and fundamentally solid, record holding is actually fine. In fact, holders are still the most profitable bunch unlike day to day traders who actually underperformed and it's proven by data. There is no such thing as one rule for all in trading, everything could work and it depends on what we invested. All these things are just meaningless effort of simplifying chaos. If it works it works.

[Bitcoin_people]

Sell hot buy cold, you mean? when an asset is hot it's bullish, when it gets cold it's bearish. Buying or hodling on a bullish run is an action that demands steady attention from the investors, they'd have to watch out for the bullish trend's expected duration before deciding to hodl or sell. As for assets with no potential market growth, the buyer must sell in a booming market and move on, it'll do no favor to return back, as the asset may never come up or get hot again.

We think of hot and cold positions in the market as bullish and bearish. When an asset reaches a peak of popularity, many people sell it, while there are some people who plan to buy and hold it, thinking about the future. In a bullish market, many investors make a profit by selling their saved coins, while many people buy in that market. Basically, it depends on the thoughts of each investor. The time of bullish and bearish must be analyzed, and later it must be planned to hold it, and investment must be made according to the growth of the market. If someone buys a popular currency from deep, then if he holds it for a long time and at some point that currency reaches the peak of popularity, then he should sell it. And if no one sells at that time and holds them with the aim of making more profit, then it can be a very wrong decision, because there are many assets that reach the peak of popularity and later fall completely and the price does not increase. So in every case, it is best to invest and sell them in a bullish market, otherwise there is a possibility of loss.

[yhiaali3]

People are always rushing towards hot or hyped investments, but they are often disappointed because they have missed the train, because they often buy at or near the peak and get stuck for a long time and then maybe sell at a loss.

The mistake of various investors in the space, the time that QNT got valued, almost everybody started rushing the assets as if it will continue maintaining increasing higher, why doesn't work that way.
Those who will mark the assets, wait for it to retrace back for almost 2 months, and then enter at their down level will certainly win in the trading.

Yes, that's what I mean. Many beginners (including myself some times) tend to make this same mistake. When a coin begins to trend up, people tend to buy as much as they can thinking they are catching the wave before it passes. The problem is, they end up buying the coin at it's high, and it starts to go down after.

The thing to understand is nothing is going to go up forever. There will be a limit to how much it can go up, and after that it will start to come down.

[Donk1]

Well to me psychologically, folks believe that when something is hyped, it's often legit because there would be many people talking about it, which often triggers the mindset of FOMO fear of missing out.Best to say what people often ignore is asking questions and doing research. Basically most times, even the people that are hyping the assets haven't even made profit from it, which is kinda weird.That said in cases like this the possibility of an individual thinking the risk is low becomes another drive. And at the end of the day when the hype begins to fall and all the big holders who were pushing price begin to sell their assets, those folks who rushed in end up making a loss. and at times if the token doesn't have real long term value, they often lose too much momentum and at the end of the day, they get pushed out of the market. That's all.....

[Audrey Simmons]

That's true, though we can expect divergent opinions on this. I guess it was Warren Buffett who said investors should learn how to go in when people are scared of investing but take profit when people become greedy. I go with that because I've witnessed it firsthand. Whenever there's hype, it only fuels the bags of early buyers who also are likely going to be taking profit as fresh hands get busy buying. That's why I've cautioned myself not to be buying hype and noise, except I'm already in before the hype.

Not far from the truth, the hype usually begins after the first pump, as soon as a project starts hyping up to the moon and buy & hold, majorly for most memecoins and low-budget altcoins, I automatically assume there is no second hope for the project. Investing at that point carries great risk, personally, I will hesitate to spend my money on such project. 

Altcoins, mostly the meme projects, are best bought before the first pump, there is often less chance of recovery if the price dumps.