🤓 Don't Chase a Pump 🤓

in cryptocurrency •  7 years ago 

Chasing a pump in any market is risky. The asset already rallied so much and is likely to be exhausted by the time you buy. Even worse if you sell an asset you believe in, to buy one you did not consider before the price went up, it is likely you will not be happy with the results.

This happened recently when EOS rallied 40% in a few hours. A friend of mine called me and asked if he should sell PLR for EOS. I said maybe and explained that it is more likely that PLR goes up than EOS to go up more. Although it is impossible to be accurate a predicting things all the time, in this instance I was correct, and pillar rallied 18% more than EOS the next day.

Moral of the story is if your an investor make your trades before the market starts jumping. All of your assets won't be the MVP every day and it is risky to chase green candles.

This is not financial advice. This is my opinion only.

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i totally agree!
but for the ones who bought during the dip - it's great to see new people jumping on the train again...

What's your take on chasing a downward trend instead of a pump?

It depends really if your trading or investing. Or if your shorting... What kind of move are you referring to? Thanks for the comment