If you get one of them wrong, it will cost you half your life. If you get two of them wrong, your investment will be close to zero. Brothers who are currently on the Meme battlefield, or those who are planning to enter the market now, must read all these seven points, because all of them are big pitfalls.
1. Buying only after hearing KOL’s orders. The core of trading must be early discovery and early holding. Buy when no one is interested and sell when there is a lot of attention. Not to mention whether KOLs charge money for the projects they order, even if it is not a paid promotion, the projects that can be publicly called by KOLs have at least been spread through four or five social networks, and no less than 10 KOLs have discussed it. If you wait until they have all called for an order before buying, aren’t you just helping their entry point? You will become their profit source, so how can you make money?
2. Do not check whether the project contract is safe before buying. Nine out of ten memes are traps. They seem to be a string of codes, but in fact they are very different. Small pool, Pixiu disk, contract lock, transaction tax, blacklist, whitelist, whale address, insider trading, any one of them, the project can run away in minutes, making the value of your position return to zero immediately. So, don’t rush in as soon as you hear the code of wealth. First check whether it is a trap dug by others, waiting for you to rush in.
3. Those who dream of buying Meme can immediately make 10 times or 100 times the money. Recently, when new people come in, they all buy and don’t sell, determined to get 10 times the money. I don’t know if it is the confidence brought by the Meme market in April and May. Watching PEPE, Milady, RFD, and BEN soaring one by one, it seems that buying any one Meme, it can increase tenfold tomorrow, and a hundredfold the day after tomorrow. These are all survivor biases. You will understand when I explain the data. I have to screen out one or two hundred Meme projects from the project library every day. If becoming a PEPE requires five stages, most projects are dead at the 0.1-0.5 stage, and die as soon as they are opened. Only 2-3 out of two hundred can go from 0.5 to stage 1 every day, and only 1-2 out of every 100 can go from stage 1-2, which is one in a thousand, not to mention going from stage 2 to stage 3, and from stage 3 to stage 4. Except for PEPE, I have not seen any project that can go from 3-4, and then to stage 5. This is still in April and May when the market is the best. With this said, you will know how small the probability of getting the next PEPE is.
4. Do not monitor the project party’s wallet address after buying. The address that was held before you must be a smarter address than you. Monitor the contract creator address, contract deployment address, contract transfer address, and the top 20 large-scale addresses. Check what the front-row project party addresses are doing and whether they are trading. Once the sell order mode is turned on, it proves that the team is going to dump the goods. Some robot addresses have a profit of up to 10,000 to 20,000 U. Once they start selling, you must also sell quickly.
5. If you do not establish trading discipline after buying, the Memecoin market fluctuates greatly and the price is greatly affected by trading sentiment. Once the market cools down and liquidity dries up, you may lose all your principal. Therefore, once the monitored indicators are in place, you should use your principal for profits and stop losses for losses. After buying, you should immediately establish a corresponding selling plan.
6. For those who have large positions in Meme, looking at the entire market, there are tens of thousands of Meme plates every day, and only three projects, Doge, Shiba, and PEPE, have entered the top 100 in market value. The essence of buying Meme is to use a small part of the position to take a big risk with a small investment. Only by sharing the benefits equally can you increase the probability of winning. Before the project comes out, early Meme projects are not worth taking large positions.
7. Have faith in Meme projects and hold them for the long term. Meme is not a regular project and has no real business model or application scenario. In other words, these projects have no source of income and rely on everyone's trading sentiment. Trading sentiment needs to be driven by a continuous wealth-creating effect, making everyone feel that it will be more valuable if they get on board now. Once a Meme project fails to take off in the short term and lacks the wealth-creating effect, the story it tells will not be sexy, and it will be very difficult to gain everyone's attention again. Either hold on when it continues to rise, or sell when it stops growing. There is no middle choice.
The above seven points are worth liking and collecting for all the brothers who are into Meme. If you don’t understand them, be sure to read them several times. It may help you reduce your losses by several thousand.
