Using SOL as an example, before it surged, I did not take the time to understand the fundamentals of the SOL project, nor did I assess its upward trend when it was trading at around ten to twenty dollars. So how can one predict its future?
This round, SOL rose from a low of 8 dollars to 260 dollars, and everyone is saying how impressive it is, how it is better than Ethereum. But did you know in advance that it would rise? Or did you only think it was impressive after seeing it rise?
If you think it is impressive only because it has gone up, then not having grasped it in advance shows a lack of ability to seize opportunities. How can one grasp the future then?
Many people believe that because SOL has risen so much, it will continue to be great in the future, thinking that the bull market will be led by SOL.
So every time there is a dip, many people are buying SOL, thinking there is still a lot of room for growth ahead.
This is caused by a lack of understanding, leading to blind following.
Just because it has risen, does that mean it will continue to rise? What kind of logic is that? If we follow that logic, Bitcoin should not have dropped from 69,000 to 15,487 in the last bull market; it would just keep rising.
Retail investors in the financial market tend to group together and step into pitfalls: when prices fall, a crowd of people comforts each other, creating panic, and then they sell at a loss.
When prices rise, a crowd of people borrow courage from each other, hyping each other up, and then chase the rise. In the financial market, having more people does not equate to having more power; the bolder one is, the faster they lose money.
