The old rule is: when the table is playing tight, you play loose, and when the table is playing loose, you play tight. Although every circumstance will be somewhat different, that rule has served me well many times.
If people are playing very tight, they are less likely to take chances. So they will often fold to the raiser unless they've got the nuts. So you may be able to win hands with nothing but the right bet.
If people are playing loose, then they're playing any two cards. And your great starting hand, even AA or KK could be beat by somebody making two pair on the flop with 3, 9 offsuit. So best to wait until things calm down before getting too caught up in the madness.
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Be afraid. Be very afraid.
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