Why do most people fail in the stock market carnival?
1. Blindly chasing niche stocks. Some people mistakenly believe that it is difficult to get rich by following the mainstream, so they throw everything into unpopular stocks. They are not in a hurry to stop when they make a profit, but they stubbornly stick to it when they lose money and are unwilling to stop losses.
2. Excessive use of high leverage. In the bull market boom, investors often increase the leverage ratio and bet heavily. Once the market fluctuations lead to a liquidation, they may return to the starting point overnight.
3. Scams emerge in an endless stream, causing a surge in the number of deceived investors.
4. Cybersecurity threats have intensified. Digital currency thefts on the blockchain are common, and hacker activities have become more rampant.
5. Blindly following Internet celebrity opinion leaders (KOLs) and rewarding them with digital currencies often results in a stone sinking into the sea, and there is no return.
Regarding the characteristics of meme coins, if they are not logged in to the secondary exchange, their liquidity may be limited. Once logged in, this often becomes a good opportunity for early veteran players on the chain to cash out. However, after cashing out, there is often a long period of correction, which is the stage when institutional investors quietly accumulate funds.
During this period, we can clearly see that the trading volume in the bottom area is gradually increasing. For this type of currency, the wise move is to follow the pace of institutions and gradually increase holdings in batches.
When institutions have completed their accumulation of funds, they may deliberately create a wave of fierce selling in an attempt to scare off investors who are trying to buy at the bottom. Then, they will start to raise prices, break through the original range of fluctuations, and quickly distance themselves from their own cost prices.
Therefore, during the critical period of institutional accumulation, we should be brave enough to seize opportunities and actively absorb chips.