Many investors believe that buying after the price of stocks or Crypto Assets has already risen is typical "suckers" behavior. However, this viewpoint may need to be reevaluated. In fact, the chase the price strategy can be an effective investment method in certain situations.
The core idea of chasing the price is to follow market trends. When the price of an asset continues to rise, it often attracts more investors to participate, thereby driving the price further up. This is known as the "strong gets stronger" effect.
Taking the cryptocurrency market as an example, during a bull market, some mainstream coins such as SOL, BNB, XRP, and BTC continue to create new highs. In this case, buying when breaking through historical highs may be a good choice. The higher the market participation, the greater the likelihood of price rise.
However, the chase the price strategy is not without risks. The key is to set reasonable stop-loss points, such as keeping losses within 10%. This allows for effective risk management while maintaining profit opportunities.
It is worth noting that successful investment relies not only on the timing of buying but even more importantly on the timing of selling. Investors who can truly achieve substantial returns are often those who buy at high prices and sell at even higher prices.
For ordinary investors, the ability to identify strong assets is crucial. The 'bullish engulfing' pattern is a technical indicator worth paying attention to, as it typically appears in the mid-stage of an upward trend and serves as a signal of strong continuation.
Overall, there is no universally applicable strategy in the investment market. Chasing the price is not always wrong; the key lies in how to manage risks and maintain sensitivity to the market at all times. Regardless of the strategy adopted, rational analysis and risk control are always the keys to investment success.