Re: When crypto spikes, exit the market
by on 03/12/2025, 08:55:29 UTC
I keep on telling traders this same thing, most of them slseevit as an opportunity to make money because of how volatile it is and it can give you huge amount in minutes.
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
When you are in crypto for a long time, you get used to it. Altcoins are still insanely risky so you could lose it all and it won't even recover, so many alts just went down and stayed there so that's another situation. But when it comes to big ones, like the top 20, they may go down with the market at some time, but they will go back up. So seeing it crash in a single day, is of course still bad, but also something we are used to.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
So many times I wake up and see my money 10%+ down, it's becoming boring to see that, I do not feel any emotions at all. Main reason? Because I also saw it go up 10% as well, much more. This is why I do not worry because I know that even if it's down now, it will go up eventually in the end.
When the market starts throwing those spikes around in crypto or forex the smartest move most times is just to stay out let it breathe let it calm down jumping in during news or during chaos almost always ends badly retail traders try to time it but the chart moves too fast and the spread widens and the whole thing just becomes a mess and before you know it the trade is gone and the lesson arrives. Being in crypto for a long time changes the way you react to all this altcoins can be straight up brutal they fall and never get back up so that’s a whole different danger but the big ones move in cycles they drop they rise they drop again so after you’ve watched that happen enough times you stop freaking out every time you wake up and see your portfolio down ten percent it becomes almost normal like something you’ve already lived through too many times to get emotional about it.