1. When we start to see new all time highs, everyone interested in the long-term success of Bitcoin should temporarily convert 20% of their BTC holdings into USD (or the fiat of your choice) at Mt.Gox (or the exchange of your choice).
If a good number of people convert 20% of their BTC to fiat as soon as we see a new ATH, that will
be the next flash crash.
Only if everyone did it at exactly the same time. Do you really expect Bitcoin owners to act like robots and act in perfect synchronicity? I expect everyone to do it a bit differently.
All I'm saying is that if more of us will sell a little when the price gets high, and place orders to automatically buy on dips, the price will be more stable, and we will ALL make more money in the long term.
We have big traders in here trying to manipulate the market, using fear to get us to part with our money. They start it off by selling when the price gets high. Then apparently some less experienced investors join in and rush to sell into the crash. Then the manipulators buy at the bottom. Then the average Joe sees it recovering, and buys back in.
Many of us are smart and cool enough to ignore the flash crashes, except to attempt (usually in vain) to buy when it hits the bottom. But if more of us were wise enough to anticipate the flash crashes, to sell a bit before the manipulators start the crash, and have orders in place to buy the dips, we can make sure the manipulator's game doesn't work.
The day trading manipulators are making profits and hurting Bitcoin in the process. If the true believers act together, we can put a stop to their game, making Bitcoin safe enough for the whole world to join in.
We'll know our strategy is working when we stop having flash crashes on no news.