When operating with altcoins or meme coins, the challenges of capturing the trend are as follows:
Concealed early gains and volatility: Early gains and volatility are often hidden within the fluctuations of multiple sectors. By the time you notice, the leading coins may have already multiplied several times.
Emergence of imitation coins: Once a leading coin appears, a large number of imitation and concept coins quickly flood the market, possibly numbering in the dozens or even hundreds, leaving almost no time to research each one in depth.
Impact of capital flow: Many sidelined funds will quickly flow into these imitation coins, impacting the market and obscuring the real trend, leading to market confusion.
Unstability of trends: The progression of trends is often not smooth, with pullbacks and short-term 'crash' signs occurring, creating an illusion that 'the trend has ended.'
Interference from market makers: Market makers like WinterMute often lead to doubts about market trends, increasing the difficulty of judgment.
Timing difficulties: Not every new narrative will immediately attract capital. The time lag for receiving capital attention can be over a year. If you position yourself early and miss the opportunity, you may face significant currency-based retracement.
Competition among multiple sectors: During a booming market, market makers from multiple sectors become active. Despite varying strengths, the overlapping waves can easily lead to confusion, making it difficult to identify the true trend.
Size and strength of trends: Sometimes, you may catch a small trend, and despite significant effort, if the gains are limited, the final returns may not be substantial, rendering the effort wasted.
Capturing the essence of trends is not only about finding coins that are rising but also about accurately identifying the true mainstream trends, avoiding being misled by market fluctuations and interference.