Investors who have had some experience in the crypto ecosystem have probably encountered the following situations to some extent: Some projects that obviously seem unsustainable suddenly become popular, some projects that obviously have logical problems suddenly rise, and some projects that are obviously taking an abnormal path suddenly become popular... Although these projects eventually showed their prototypes and eventually fell, there are some players and some sensitive investors who can seize such fleeting opportunities, take advantage of these rides, and become rich overnight and famous overnight. After seeing so many such examples, many investors will sigh: As long as you can make money, who cares what project it is. As a result, many investors will form the habit of chasing hot spots and following the trend driven by this kind of thinking-no matter what the project itself is, as long as it becomes a hot spot and is likely to make money in the short term, then you can grab one, "no matter what project it is." This seems to make sense, but in practice, I have observed that this investment method is difficult to be long-term and sustainable. Why? Because this investment method lacks investment logic or a fundamental investment theme. Even if an investor who invests in this way seizes the opportunity to make money in a hot spot, he may not really understand why this hot spot is hot? How long will this hot spot last? Is this hot spot value discovery or short-term speculation? In other words, it is difficult for investors to understand where the real hot spot of this project is and whether this hot spot has room for further growth.
If you don’t understand where the real hot spots are and it’s hard to judge the growth space of hot spots, then in the process of operation, investors often find it difficult to answer the following questions: Can this heat last? Is its current popularity a gust of wind or the starting point of value discovery? If it’s just a gust of wind, is entering the market now to take over at a high position or just to catch the wind? If you have made a profit after entering the market, when should you exit? What if it falls tomorrow? Will there be a chance to rise again in the future? ... If you can’t answer these questions, then making money in this way of chasing hot spots is almost the same as gambling. Even if you make money, this experience has no reference or reference value.
Without experience to refer to and learn from, it is difficult for us to make long-term profits in the investment market. In order to be able to clearly answer these questions and summarize experience for reference and learning from our investment experience, we must establish our own investment logic and form our own investment main line. Only in this way can we clearly judge whether our upcoming investment behavior is rational? Is the project worth starting? How sure are we to make a profit after starting? When can I enter the market? When should I exit? In addition, in investment, I think there is a basic point that we retail investors must be clear about: that is, "take only one scoop from the three thousand rivers". In the crypto ecosystem, different ecosystems are developing every day, and there are all kinds of opportunities emerging in an endless stream.
As retail investors with limited energy, time and capital, it is impossible for us to seize every opportunity. We can only seize the opportunities that we are most confident of in this ecosystem and aim at the right opportunities. Of course, while we are aiming at the right opportunities, we will inevitably lose other opportunities that may not belong to us at all. As retail investors, we must have a clear understanding of this. To be able to aim at the right opportunities and seize the opportunities that belong to us, we also need to establish our own investment logic and form our own investment theme.