A lot has happened in the market recently, and hot spots have rotated very quickly. At the same time, there has been a very obvious sector switching. Today everyone is speculating on AI, and tomorrow everyone is speculating on coin swaps, splits and name changes, Metaverse VR, and new sectors. Funds have overflowed to various places. Often, as the main line of the market becomes unclear, a round of market trends will reach its final stage.

But the good thing for all of us is that the market is no longer stagnant, and the ups and downs of popularity bring more attention and traffic. What is important is not the market growth, but people's expectations, then the situation will get better and better.

In this article, I want to try to summarize and summarize these sector narratives, so that I can gradually gain a deeper understanding of these concepts and themes. This will help me judge and operate the next mainstream theme hotspot.

Here I borrow the next definition of subject matter from what I learned from books: events and facts that can lead to expected changes in resources, wealth, and power.

For example: The Shanghai upgrade has brought about changes in the distribution of ETH, and expectations of changes in the distribution of benefits.

Microsoft invested 10 billion in OpenAI, and the AI ​​track ushered in a huge influx of resources and funds, various entrepreneurial tracks and existing AI-related concept projects.

What happens outside may seem to have nothing to do with the industry at first glance, but it actually affects all levels, including society, companies, projects, and even individuals. The investment market is a reflection of human society. People are affected by major events and phenomena, and naturally have new views and judgments on related investment targets. Opportunities and chances are born there.

But there are so many topics and concepts in the market, and everyone has different opinions. Today this KOL talks about this coin, and in the afternoon that KOL talks about that project. There are countless news messages every day. How can I judge and screen them?

When we are taking exams in school, we all know that the most important thing is the key points marked by the teacher. The same is true when finding topics. We need to focus on the key points, and focus on mainstream topics. A market situation will be composed of one main theme and multiple branch themes.

Main themes often attract the most funds and are the opportunities that attract the most attention from the market. They should be the focus of our attention. However, those intertwined and complex opportunities, such as this good news today and that financing tomorrow, are just fleeting side opportunities. They have relatively poor certainty and space.

So what are the characteristics and judgment basis of the main theme?

The key is three simple words: big, new and strong.

Big theme:

Mainly refers to events with far-reaching influence, affecting the income of multiple industries, and even the macro-economy and social fields. Major events with far-reaching influence, such as: Ethereum merger upgrade, Bitcoin halving, FTX crash. The influence is enough to affect the entire crypto industry, and the changes in funds and wealth brought about are enormous.

Small topics mainly involve local changes that affect a small field, usually a small track and several projects, or even the revenue of a single project. For example, CZ supports decentralized wallets, and the project has received investment and financing news. A small exchange has listed a coin.

Big themes can also be quantified in terms of size. When a theme comes out, we should be able to roughly judge the amount of wealth it affects. For example, behind the LSD track corresponding to the Shanghai upgrade are tens of billions of Ethereum distributions and billions of revenue and profit divisions.

New themes:

Everyone can understand the difference between old and new. Naturally, people like new things and abandon old things. Perhaps it is because they do not have the concept of long-term value. However, capital and everyone like new stories. Old stories make people lose money and are a mess. Naturally, they cannot be told. When a theme declines and a new theme emerges, we must know how to switch in time.

Strong subject matter:

How to distinguish between strong and weak is mainly based on the market and volume. The market is mainly determined by the increase in multiple targets of the corresponding sector of the theme, relative trading volume, the number of times the increase list appears, and sustainability. This is the consensus of cash funds in the market and the recognition of mainstream funds. Another off-market standard is volume. The promotional materials, article interpretations, and even community discussions of various related theme concepts can all show the strength of the theme.

After you have done and understood the above-mentioned criteria for judging the subject matter, I believe that in the future, when similar big news and information comes out, you will definitely have a more individual feeling than before, and naturally be more sensitive to market opportunities, and no longer be the leek player who lacks knowledge and judgment of news and hot spots. With the same judgment criteria, I believe that you will look at the next possible potential sectors: social, VR, ZK sector, metaverse, storage, etc. You will be much clearer than others, and you just need to wait for the opportunity to explode.

Firmly grasping the mainstream themes and establishing the main line of thought is the main way to simplify our decision-making and increase our winning rate. You must know that only big rivers and lakes can catch big fish and return with a full load, while small streams and creeks can only give us shrimps. The emergence of themes corresponds to the expectation of changes in opportunities and wealth. When you can see this expectation and take advantage of it, you will have a greater chance of enjoying the benefits.

Finally, the 12-character guideline of the subject matter is to focus on the big and let go of the small, to love the new and dislike the old, to eliminate the weak and keep the strong.

This article mainly talks about the judgment and analysis methods of the subject matter, which is only one step in the entire investment process. We will talk more about position management, profit taking and cashing out later.

If you agree with the content of the article and like crypto investment research, we look forward to working together.

That's all, Dyor.

Author: Chad, Twitter @chad1997y; Editor: Gemini, Twitter @Gemini0x17