Understanding Meme Trading

April 11, 2024

In Todays Issue:

  1. Understanding the Game You're Playing

  2. The Perfect Meme Token

  3. Setting Realistic Expectations

Understanding the Game You’re Playing

The journey to consistent meme coin trading profits begins with a deep understanding of what you're getting into. It's crucial to remember:

  • You're trading, not investing.

  • Losses are part and parcel of the game.

  • A staggering 99% of tokens are potential scams.

A closer look at 10 meme coins launched consecutively on Solana within a 1-2 hour window reveals a startling reality: 60% were outright scams. Among these, two presented an illusion of legitimacy with social links. Of the rest, three had unsecured liquidity pools (LPs), posing a high risk of liquidity being drained, leaving holders stranded. One such coin had a trading volume over $500,000.

Ultimately, only one token showed promise, with secured LP, significant social links, and impressive volume, yet it too saw a drastic drop from a $200,000 market cap to $30,000 in just 1.5 hours.

Identifying a viable meme coin trade emerges as the most daunting challenge in this volatile trading space.

The Perfect Meme Token

What constitutes the ideal meme coin? Traits include:

  • Secured LP

  • No presale

  • Massive volume

  • Launch free of sniper bots

  • High-quality website

  • Over 1k social engagement

  • Active developers

  • Strategic marketing

  • Exceptional art and narrative

  • Community of diamond-hand holders

However, the stark truth is the perfect meme coin is a myth. Yet, you don't need perfection to profit. Effective risk management is key, allowing you to navigate through scams and still come out ahead.

The art of timely exits cannot be overstated in its importance for meme coin trading success.

What to Expect

As locking LP becomes a basic trust-building measure, scammers innovate relentlessly. Yet, several tools and strategies can aid in navigating these treacherous waters, though some scams will inevitably slip through.

Armed with a solid strategy, a set of rules, and diligent effort, achieving a respectable return in meme coin trading is feasible. This niche isn't fading away and mastering its challenges could prove invaluable.

After all, the thrill of the occasional "rug pull" is part of the allure for those of us who embrace our inner degen’s. Participation, in this sense, becomes almost a rite of passage.

DISCLAIMER!

Any content found in this newsletter is NOT financial advice & you should always do your own research.