Several Interesting Downtrend Trading Phenomena
1. The subjectively considered bad chips are discarded first.
MEME, and some currencies that you think have no potential, will be the first to stop your losses, just like leaving new banknotes and using old banknotes.
This is why the washout of MEME tokens is more thorough.
2. Infinitely magnify the single advantage of the token and ignore the analysis of the overall properties of the token
When you hold a token in a downward trend, it may not be because of how good its fundamentals and narrative are, nor because of how great its market capitalization potential is.
More may just be because it has an advantage at a certain point, for example, it is marketed by DWF, it is invested by a16z, it is still in the early stage...
Hold requires looking at your chips from more perspectives.
3. The downward trend ignores the gradually closed information environment
When the market enters a downward range, most projects, institutions, and teams will choose to tighten their information release, resulting in varying degrees of information gaps.
The "gambler's psychology"-"repeated game" in Lao Liucai's motivation for bargain hunting will lead to a significant decrease in the investment winning rate until the game is over due to the widening information gap.
4. Expand investment scope and sectors during the downward trend
If you choose to follow novel models and narratives in the downward market range, you will most likely miss the low-price chips that should actually be deployed, thereby missing the next round of mainstream market.
It is easier to obtain a higher rate of return by investing in tokens within your own cognitive range and narrowing the investment scope.
4.2 The upward trend is the opposite. Most people will choose to invest in the tokens they once held to pay attention. Similar to people who often like to sit in their accustomed seats, this makes them often miss the layout stage of novel narratives.
As an investor who has been in the currency circle for many years, I am willing to share my experience and insights with you. If you are interested in the currency circle, but don’t know how to start, you may wish to follow my homepage, discuss with me the mysteries of the currency circle and future possibilities, and nod to find me through the introduction.
