Take SOL as an example. Before it rose, there was no prior understanding of the fundamentals of the SOL project, nor was there any judgment regarding its upward trend when it was priced at ten or twenty dollars through market movements. How can one judge its future?
This round, SOL rose from a low of $8 to $260, and everyone is saying how impressive it is, claiming it is better than Ethereum. But did you know in advance that it would rise? Or did you only think it was impressive after seeing it rise?
If you only think it is impressive because it has risen, then not being able to seize the opportunity beforehand indicates a lack of ability to grasp it, so how can one grasp the future?
Many people believe that SOL will continue to be great because it has risen so much, thinking that the bull market will be led by SOL.
Thus, every time there is a decline, many people are buying SOL, believing it still has a lot of room to grow.
This is the result of blind following due to a lack of understanding.
Just because it has risen, does that mean it will continue to rise? What kind of logic is that? If we follow this logic, Bitcoin's last bull market wouldn't have dropped from $69,000 to $15,487; it would just keep rising.
Retail investors in the financial market tend to band together and fall into traps: when prices drop, a group comforts each other, creates panic, and then sells at a loss.
When prices rise, a group encourages each other, gets overly excited, and then chases the price up. In the financial market, having more people doesn't mean more strength; the bolder you are, the faster you lose money.