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.

[henmark]

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.

People are often late to catch that hype. They only get to know once the coin is already on the peak and they make a mistake there thinking the price might go beyond so it is an opportunity for them to make quick profits. That does not happen in most of the cases and these people are left with coins purchased on the peak and have already lost more than half of their value. Them earning profits in this situation is almost impossible because holding these coins is worthless now.

Choosing the right asset to hold is really important because this can decide if we are actually going to make any profits after being patient for this long time. We would certainly not want to see loss after holding for years.

[bhadz]

That decision I've made to sell last year was a collective decision and experience from the past bull runs that I've seen. Although I didn't sold a lot but, I was able to at least get something that I'm satisfied with. Compared with those long-time holders who have a lot of holdings, with my kind of living I am already happy about it. But, that doesn't stop there because it's important to continue buying and holding again before we come back to the next bull run. You can't also easily enforce what people needs to do when they have decided to hodl even in the bull runs.

[Lannakosa]

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)

You are absolutely right, I have often noticed that people tend to pay the most attention to hot assets. Day traders are particularly attracted to them because they believe that a rapidly moving asset can offer good profit opportunities. In my opinion, traders often lose money when they assume that an asset that has already risen sharply can continue going up simply because of the hype. So they buy at the wrong time. My approach is different, I believe you should focus on assets that show active development and strong work from the project team but have not yet experienced significant price growth.

[Webetcoins]

Hype does not remain constant. Those hot assets can give massive profits in the current times but soon, the hype will fade away and investors will lose money after buying on the peak and holding it for the near future. It is always recommended to make quick profits and exit these hot assets. At a time, Shiba Inu was a hot asset and I am sure a lot of people are still holding it because they feel at some point, the hype might come back and give them massive gains.

For holding, I would always prefer assets like bitcoin or ETH because I believe in the future and that hype will last forever. Demand for BTC and ETH will keep rising so I won't mind holding some in my bag which I can only open after a few years.

[M47AK16]

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.....

It is not always necessary that the hyped asset is legit or really good. Many times, the devs behind these hyped projects spend millions on marketing which spreads the word. Anything can be sold in today's world and it does not really take that long time for shady projects to hire extra-ordinary sales executives to start selling their asset.

These executives start bombing social media, forums and blogs with promotional stuff and people start buying thinking everyone else might be buying this asset. This will make the price bloom but for how long? Soon enough people will realise this as a fake hype and they would start moving away but it will be the new investors who would still fall for this trap.

[Proty]

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[/i].

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)

Not everyone has  the opportunity to buy an asset when it was still unknown because there may be fear of the asset not appreciating in the future. This same thing happened with bitcoin, when it was first introduced. There were people that was criticising it, but now that it has become a centre of attention most of this people has changed their perspective about bitcoin and they have started buying it. So if this should be applied to bitcoin, then you are wrong because even now that bitcoin has become a centre of attention there still people that are buying and holding instead of selling as you advise. Buying bitcoin and holding it for a long term isn't a bad idea despite widespread adoption because there is still chances of it appreciating in value over time.

[yixichloro2xx]

Hype does not remain constant. Those hot assets can give massive profits in the current times but soon, the hype will fade away and investors will lose money after buying on the peak and holding it for the near future. It is always recommended to make quick profits and exit these hot assets. At a time, Shiba Inu was a hot asset and I am sure a lot of people are still holding it because they feel at some point, the hype might come back and give them massive gains.

For holding, I would always prefer assets like bitcoin or ETH because I believe in the future and that hype will last forever. Demand for BTC and ETH will keep rising so I won't mind holding some in my bag which I can only open after a few years.

Ngl Shiba Inu printed alot of money for the early birds then, even people that came a bit late were able to profit out of it. I could say  Shiba Inu was so hot then and it brought a lot of people into the Crypto ecosystem then. I can testify to that , I also bought Shiba again around early 2024 because we were hearing there could be another bull run which means memes and Altcoins could jumped. Well it didn't happen and those coins I bought then dipped so low that I just had to forgot about the wallets, there's nothing to withdraw out it. This loss was one the reason that pushed me more closer to bitcoin. Bitcoin is the only one I trust and wants hold for long. I am also thinking of trying Eth out , but I don't know if it could still grow.

[Gozie51]

. They say it is better to leave the stage when the ovation is loudest but the challenge with bitcoin is to know when to exit your profitable trade. It is therefore very important to set target for exit and that will safe you the temptation of being greedy because that is the major reason for over trading and loses.

You are right when you said that greed is the main cause of the losses of most traders, but if I may ask, how can you make big money in the market if you are not greedy? Because you can't be cashing out small profit consistently and be expecting to be rich when you don't have the guts to hold further and make big money in the market.  I know that a winning position can turns out to be a losing position most times, but if those that made big money in the market had cash it out earlier, do you think they would have went on to make such money ? No.

So I am of the opinion that being greedy is not bad, but let it not be too much, because you actually need to be greedy to make big money in the market.

Thanks for the way you understand the greed thing. Actually being greedy may become good sometimes when it favours you and at other times it is what will still bring the person down. The point is to know where to draw the line and avoid being over greedy. What would you call someone who had an initial target and when the market starts to favour their position, they decide to increase their profit limit to make more and maximize it. The funny thing is that, the price may turn spontaneously against that person and they begin to run at loss, that is the greed part of it that I'm talking about. To make profit, yes you have to be greedy but we need to make targets and when price get to it, we should not be greedy to exit. That is very important to succeed in the business.

[stepwilli]

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.....

That psychology is the reason why so many people are so crazy about meme coins, because meme coins that are hyped are considered possible ways for them to get rich, and they believe if so many people are talking about them, then there must be something special about them, so they decide they are not going to miss out, that's how FOMO happens. And the reason why people hype such assets even when they haven't yet made any profits from them is because they also know that these assets live up to the hype they get, which means the more they are hyped, the higher their chances are to make money from their investments because that's how meme coins and shit coins gain their price.

If I have invested in Meme coin A, for example, and I bought it at $0.00001. Now I would try my best to create as much hype as possible on social media and other places so that the word can spread about it and more people start investing, because more investors means the price will pump, and if I have bought it at $0.00001 and it pumps to $0.00005, I will make 4x profit on my investment. That's how these things work, and those who are into such investments already know a lot about these things, which is why they are always hyping projects and tokens that they have bought.

[leonair]

Actually, when people think about investment, they think about different aspects and then decide to invest. And in that case, people very quickly believe in the most discussed topics. And many people also lose a lot by investing in them. And when a business is launched with a new concept, some people invest there and they can successfully make big profits, but most of the investors are confused about that investment, due to which they do not invest, but they invest when it becomes a hot topic.

In the case of investment, instead of making a right decision by analyzing it, most investors make decisions through their emotions and focus more on hot topics and that is why their profit rate is low. also, they blame their luck for losing. So if you don't want to turn any type of investment into junk, you must analyze it well yourself and then invest.