it is the risk management plan. you invest something and then speculate the price will go to 1 million dollar and then you wait until then. but nothing is stopping you from selling when price is lower. it may actually be a good idea to sell something when price reaches new ATH.
of course a better course of action is to buy in the dips and sell on tops and then buy back in the next dip. for example when price reached the ATH of $4900 you could have sold some small portion of your stash and wait a while till price bottoms out then buy back the same portion you sold and keep the profit in fiat for yourself. although some people keep their profit in bitcoin meaning they buy even more bitcoin after the dip. you sell 10BTC and buy back 14BTC
Thank you, this is a strategy experienced traders use that pay attention to news and the cryptospace environment.
it is just a simplified explanation to give the outline of what to do, there are a lot of things to consider before pulling this off successfully.
e.g the second wave of news claiming china would target bitcoin transactions by blocking ip addresses etc people would have thought that would have dropped the price further but it seems the price is stagnant meaning either the news hasn't propagated as much as it could have as people didn't differentiate btw the headlines and the previous exchanges banning headlines or some counter balancing measure like the effect of news from japan or who knows.
all true, but the effects of any news (positive or negative) can not be endless. there will be a point where no matter how much more of the same news category comes out, it won't be effective. China can say they will hang anybody who uses the word "bitcoin" and it won't matter anymore at some point.
Its still speculation however I guess its better to sell with catastrophic news, wait to see if it drops, then you can make a profit by buying back in at a lower price or if it gains at least you can sleep easy and you didn't loose nothing but the slight gains you would have achieved if you didnt sell as you will still have the amount its worth in fiat than doing nothing an it drops and you can only watch your value evaporate. Unfortunately those catastrophic guaranteed nosedive pieces of news are few and far between and does not provide a sustainable method to earn frequently. Any thoughts? so do you agree that; buy, wait for really bad news, sell and wait, while prices drop and then buy back in low, is a good strategy or has anyone got any others.
news is a secondary thing that affects the market. for example when price was shooting up and there were no resistance on the way up even if China did what they did for real back then, it wouldn't have mattered.
but if you look at the timing, when China FUD started it was after the rally had ended and the correction was also near the end and price was lower than the ATH and coming down slowly to stabilize on the bottom ($4400ish)
However, I don't think it will reach that high and if it does, then it's probably is acceptable worldwide. Therefore, no need to cash in, you can spend it just like your fiat currency. 
