The most important thing to remember when trading meme coins.

The most important thing to remember when trading meme coins is that they are completely useless. People will say that what they buy is a good narrative (a story to tell), but ultimately there is no point to them. They are just Ponzi scams. However, you can make money out of them if you are early. I am going to write about here when you are early or not.

Here is a chart I bought into yesterday. I made some big mistakes yesterday and lost over $1500. This is unusual for me as I normally have excellent risk management.

Here I bought first on the sad face, and then I bought again on the other sad face. I thought this token could have good potential because it is a funny and popular meme. However, as I have already said all meme coins are pointless it is down to the dev team if they want to scam or not. You have full trust in them. It was around $300k market cap when I bought which is not early for a meme coin. The market cap starts at $2000 so some people have already made over 100x on their investment of something that is completely pointless. Because people are up so much they do not mind selling and completely ruining the chart. If there are no buys to support the chart it will carry on going down. People are just after fast money therefore if you buy after the team has done their marketing you will exit liquidity for them regardless of how good the meme may be.

If the team doesn’t want to push and are looking to just make a quick profit your token will go down unless the community take over. Waiting for the community to take over isn’t a good thing. When meme coins come out on the first day the volatility is huge and they are very dangerous to buy. They have no support on the chart and essentially you are gambling.

If you buy a meme coin the first day it comes out, treat it as day trading.

The first day when a meme coin comes out is critical. Ideally you want to buy within the first hour. You can find these coins on new pairs on dexscreener or by following good wallets. Unless the coin has utility and solves a real problem, in the first day it can go up or down really fast. Therefore it is best to treat the coins you buy on the first day as day trades. Set a stop loss because if you don’t do this instead of taking a small loss you can lose all your money very fast. A stop should be 20/30 percent below you have bought. This way you won't lose everything. Be in the telegram as well looking for red flags in the project. If you spot any it might be a good idea to sell as well.

Always take your initial after it has gone up 100% and sometimes if you buy big it might be best to take your initial after it has gone up 50%. The truth is you are never sure what the MEME coin will do therefore if you take your initial fast you will not be making a loss.