2026-01-06 06:24:31

By observing recent market trends, you will notice an interesting phenomenon: strong sectors periodically consolidate, while sectors that have experienced sufficient correction then begin an upward trend. This kind of structural rotation occurs in almost every cycle.

Many traders tend to operate in the opposite direction—buying into the strong, avoiding the weak. What’s the result? They often buy at high points and suffer losses repeatedly.

Looking at last year's data makes it clear: 80% of coins increased in value throughout the year, with a median gain of 20%, and the market was extremely hot. But ironically, most people actually lost money. Where is the problem? It’s because they are driven by emotions, always wanting to chase the strongest.

The core logic is simple: the strong will become exhausted, and the weak will rebound. Contrarian trading often yields twice the result with half the effort. Don’t always focus on coins that are skyrocketing; try to find those overlooked opportunities. This year, consider adjusting your strategy and become a trader who truly understands sector rotation.

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WhaleStalker

· 01-09 06:24

That's correct, but very few people can actually perform reverse operations. I've seen too many who talk the talk but still chase highs and sell lows. Wait, are weak coins really that easy to pick up? It doesn't seem like there's little risk either. The key is to have patience and not let short-term fluctuations affect your mindset. Honestly, in the 80% increase last year, most people didn't get a share, which really says a lot. Sector rotation sounds simple, but in practice, it's deadly. How do you determine which is the real rebound opportunity?

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TideReceder

· 01-07 20:29

Well said, that's the logic. The coins at the bottom are often the real treasures. People chasing the rise are still high, not realizing they're already taking the final lap. Making money, simply put, is about going against human nature and trading. 80% gains still result in losses—that's being fooled by emotions. Unpopular coins are often the turning points; don't always follow the herd into crazy surges.

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BearMarketGardener

· 01-07 01:06

That's quite right, but no one can actually execute it... I think most people will still continue to chase highs, and they can't remember the bloody lessons. Chasing gains is fun, but the ones that are guaranteed to make money are actually avoided—it's a human nature issue. There are real opportunities on the cold bench, but you need mental preparation; watching coins fall slowly is really uncomfortable. Counter-trend trading is easy to say but hard to do; the difficulty lies in mindset. A sudden surge within an hour can break your resolve. Wait, I heard this theory last year too, but still, a bunch of people got liquidated... Sector rotation exists, but it's hard to tell which ones are truly weak and which ones are about to die—that's the trap. The median increase last year was 20%? Then I definitely wasn't in that median... The truth is, everyone wants to be the smart one trading against the trend, but in reality, the herd effect wins. I've also bought obscure coins, but I kept waiting for that rebound, and instead, they just kept cooling off.

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BrokenDAO

· 01-06 06:54

It sounds like you've uncovered some big secret, but in fact, this logic itself is a game theory trap. Everyone understands the principle of "weak rebound," but once a coin really surges, the incentive structure hijacks all rationality. This isn't an emotional issue; it's a mechanism problem—profit expectations from chasing highs always outweigh the uncertainties of contrarian thinking. Last year, 80% of coins increased in value, yet most people still lost money, precisely indicating that the group itself cannot self-correct. Change strategies? First, you need to address the fundamental paradox of why things that are well understood still can't be executed.

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SelfRugger

· 01-06 06:54

That's true, but very few people can actually do it. I often get proven wrong myself. Obscure coins can indeed double in value, but the key is to resist chasing the popular ones. It's very common to lose money even with an 80% increase, which shows that most people haven't really understood the game rules. People are afraid to buy coins at low prices and reluctant to sell at high prices. That's the difference between newbies and winners. Contrarian trading sounds simple but is difficult to execute. The psychological barrier is very tough.

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TrustMeBro

· 01-06 06:49

That's right, chasing gains and selling losses is truly a common problem among retail investors. I've done that myself. Why didn't I think of rotation when entering at a high position? The rebound opportunities for unpopular coins are indeed easy to overlook. Next time, I need to think in the opposite direction. The 80% increase last year feels like it was all eaten up by institutions, while retail investors are still chasing the last wave. Strong sectors rest and weak sectors rebound. The seemingly simple logic is so hard to execute in practice. Contrarian trading sounds comfortable, but when it comes to critical moments, it's easy to panic. Overlooked coins are indeed worth paying attention to, just worried about getting caught in a trap. Emotions are truly the biggest enemy in trading. Next time, try only focusing on the biggest declines; maybe it can really turn around. Sector rotation sounds easy to talk about, but mindset is the hardest part.

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BearMarketSurvivor

· 01-06 06:47

Well said. That's exactly how I got trapped, chasing hot coins and buying at the top. Now I realize that the overlooked coins are often the real treasures. Honestly, being able to lose money even with an 80% gain is quite ironic, and it's all due to greed. Sector rotation sounds simple in theory, but in practice, it's easy to be swayed by emotions. Contrarian trading sounds easy, but the biggest challenge is the psychological hurdle. Obscure coins are indeed easy to overlook, but the risks are high too. Choosing poorly can still lead to explosions. Chasing gains is the devil; I've been lessons multiple times. This year, I need to change my approach.

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GateUser-74b10196

· 01-06 06:38

It's that same theory again and again. It's easy to talk about, but really hard to implement. The reason so many people chase the rise is due to psychological effects. Rebound my ass, the tactics are all the same. Wait, this logic has some merit. Last year's data was indeed outrageous. Oh my god, talking about contrarian trading every day, but in the end, you still have to choose the right coin. It's really just luck. Who can accurately catch the bottom?

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