Once, I saw a news report about Trump coins, the content was stimulating, and within a few minutes, a large number of people rushed to buy. Such short-term hot news often causes the market to react instantly, but when I bought in at that time, although I made a small profit in the end, it was far from what I expected. Looking back, this approach really carries huge risks.
The lag of news and the immediacy of market reactions are my biggest lessons. Many times, the information conveyed by news does not represent the true trend of the market; it may be about something that happened in the past, while the market's direction has already changed. Especially in the highly volatile market of cryptocurrencies, the short-term news effect is often fleeting, and trend-following investments are often hard to make significant profits, but instead can easily be devoured by the market's rapid changes.
Therefore, trading cannot solely rely on news and hot topics; one must establish their own analytical system and judgment standards. Buying coins based on news may sound tempting, but the real winners are often those who can see through the surface and understand the underlying trends. Speculative behavior can only lead to short-term profits, but true wealth comes from rational and long-term decision-making.