#大户持仓动态 The Truth About Small-Cap Trading: Why High Volatility Attracts Traders

Recently, an interesting phenomenon has been observed—whenever a new coin is launched, trading volume becomes very active. Taking FOLKS as an example, the related BEAT surged 26% in a short period, resulting in a $2,000 paper profit, which is equivalent to quadrupling the investment. Sounds tempting, right?

But this is also where the problem lies.

Such high returns are often accompanied by extreme volatility: rapid surges are easy, and waterfall declines are just as easy. Like tokens such as pippin, they either skyrocket or plummet, with hardly any stable zones in between. This is a typical characteristic of micro-cap coins.

My advice is: if you do participate in this type of trading, the most important thing is not to chase the maximum profit, but to take profits promptly when you are in the green. Set a proper stop-loss level, and don’t be greedy waiting for the next surge. Many people fail at this step—initially having a $2,000 unrealized gain, but eventually returning to the principal or even incurring losses.

Behind high returns, there are often high risks, and high risks require more cautious position management and mental preparation.