When it comes to trading, many people tend to fall into a vicious cycle——they can make profits initially, but as they hold their positions longer, the gains gradually evaporate, and eventually they even lose their principal. The fundamental reason behind this is actually one: poor position management and insufficient judgment of trend strength.

Trading small-cap coins can indeed allow for big gains with small investments, and there's no denying that. But the risks are also very real. Some traders chase into trends with high leverage, with liquidation margins as tight as 2%-10%. If they don't close their positions promptly during a pullback, they might get liquidated when a rebound occurs. This is why, in a bullish market, some traders can consistently profit while others keep getting stopped out—the dividing line.

In essence, chasing a trend is about right-side trading—only entering when signals are clear. The biggest characteristic of this approach is that it often causes traders to miss the optimal entry points, forcing them to profit through short-term follow-ups and repeated chasing of entries. There's a vivid term in trading circles called "relay": when the market maker pushes the price up, you follow along and go long, like passing a baton in a relay race. This method is called "breaking the board" in the stock market, and professional traders rely on it for their livelihood.

Ultimately, no matter how high the potential of hot coins like SOL, without proper position planning and risk awareness, even the best market conditions can't save you. Even with mainstream coins, poor position management can lead to bankruptcy.