In what situations is it possible to encounter a "golden dog" (potential coin)? The following situations can be used as reference:
1. Observe the trend of smart money:
If a certain coin is really good, there will definitely be a large influx of so-called "smart money" at the opening to take over the chips sold by insiders.
Because they are very optimistic about this coin and think it can rise to a very high price.
2. Judge by trading volume:
A good "dog" (potential coin) that is popular and can drive market sentiment will often have a very large trading volume at the opening.
If the trading volume (volume) at the moment of opening can reach 1 million (1mil) or even several million (several mils), it at least shows that it is a "good dog" that can drive market sentiment.
But this alone cannot determine whether you can enter the market, otherwise you may encounter the price top as soon as you enter the market.
3. Analyze the front row holdings:
Look at the front row holdings. If the top 10 holdings account for too high a proportion, such as 50% or more, then you can wait a little longer until the front row holders have almost sold their stocks before entering the market.
If the front row holdings account for around 30%, for those "dogs" that are driven by market sentiment and have rising momentum, you can actually try to enter the market.
Because there is a possibility that the percentage of holdings will gradually decrease, that is, the front row holders will sell their stocks while the price rises. Of course, it is best if the front row holdings account for around 20% and meet the other conditions mentioned above, then you can enter the market directly.
4. Pay attention to the principal and stop profit:
Be sure to remember to take back the principal in time and set the stop profit point. Most of the "golden dogs" that can rise to a market value of 10 million (10mil) have a very short survival time, and may not even survive for 1 day, let alone 7 days. Therefore, we must seize the opportunity to make profits and avoid wasting time.