Let's talk about the reasons for reducing altcoins yesterday.

In fact, this processing logic has already become a consensus among veteran stock traders.

The general situation is as follows: when the stock market index is in an upward state, it normally leads to the rise of many individual stocks as well.

However, if some individual stocks show a sideways or slightly declining performance, it means that there exists a force that opposes the upward trend of the overall market for these stocks.

This force often takes advantage of the overall favorable situation of the market rally to sell off, and these types of stocks are referred to as "junk stocks" in the professional field.

The same reasoning applies to the cryptocurrency market. If Bitcoin shows a one-sided upward trend, but altcoins do not rise accordingly and even show slight declines, then from this perspective, these altcoins are like junk stocks in the stock market, making them unsuitable short-term investment targets, and decisive reduction of positions must be taken at this time.

Of course, there are still certain differences between the cryptocurrency market and the stock market. The degree of sector differentiation in the cryptocurrency market is not as significant as in the stock market. In extreme cases, it is even possible to see some stocks hitting the upper limit while others hit the lower limit at the same time in the stock market, which makes stock traders more sensitive to changes in capital flow.

In contrast, cryptocurrency traders generally have a relatively lower sensitivity to sector differentiation and capital flow, but this actually becomes an advantage for all-category traders.

All-category traders can span multiple different trading markets, and the trading skills they master are universal; they can be effective in the cryptocurrency market, stock market, or other financial trading markets.

Because of this, I have always encouraged everyone to try all-category trading, as it helps to broaden investment horizons, better grasp market dynamics, and make more reasonable investment decisions.