When playing with altcoins or meme coins, there are quite a few challenges to capturing trends:
Early trends are hard to detect: The initial price increases and volatility are often masked by fluctuations in other sectors, and by the time you realize it, the leading coins may have already surged several times.
Too many imitators: Once a leading coin emerges, a wave of imitative or conceptual coins follows. With so many options, there’s hardly any time to properly research them.
Capital rush: Funds start pouring in wildly, especially those that missed earlier opportunities, chasing after these duplicates, resulting in a very chaotic market where the real trends are obscured.
Trends are not a straight line: The progression of trends is not smooth sailing; there are often pullbacks that might make you feel like "is it about to crash?"
Impact of market makers: Operations by market makers like WinterMute often make you doubt your own judgment, throwing your mindset off balance.
Timing is difficult: Not every emerging concept will attract funds; it may take a long time to enter the mainstream. If you position yourself too early, a wrong move could lead to significant drawdowns.
The market is complex: When the market is hot, multiple players in various sectors are stirring things up, and the overlapping waves can make it particularly difficult to discern which is the real trend.
Trends vary in strength: Even if you catch a trend, it may only be a minor one, and after much effort, the returns might not be significant, leaving you feeling exhausted without much gain.
Today, I want to tell everyone that capturing trends is truly not an easy task. In the future, when there's an opportunity, we can discuss how to tackle these challenges.