When I first entered the industry, the words of a big player in the A-shares market completely changed my trading mindset: when stocks and cryptocurrencies are rising sharply, it's often when everyone is speculating the most. If everyone thinks it's a 'sure thing', it becomes dangerous.
These two markets actually operate in a similar way, both relying on speculation around hot topics and emotions to make money. The A-shares market has new themes, while the cryptocurrency market creates new narratives; fundamentally, they are both about painting a picture for everyone. However, these 'pictures' come in three types:
New wine in new bottles: the most appealing! For example, when a concept that has never been heard of suddenly emerges, some see it as a scam, while others think it's a trend, and no one can convince the other. Because there is no precedent, the price can rise unpredictably, and the speculation can last a long time.
New wine in old bottles: it can be played with, but one must take profits as soon as they appear. Using new terms to package old concepts, it can rise for a while due to novelty, but will quickly reveal its true nature.
Old wine in old bottles: purely a scam! They swap outdated items for a new label and continue to deceive; see it and steer clear.
So when encountering new hot topics, do not rush to shout 'intelligence tax'. The more controversial it is, the more likely it hides opportunities. But remember, to participate, you must act faster than others — once everyone reacts, it will be time to stand guard and take over.
