Memecoin Trading Strategy
From what I’ve noticed, there are two ways to reach the same goal in this market:
1) Buy and wait for a life-changing runner.
2)Take a more strategic approach: buy at a certain market cap, sell for 50-100% gain, and repeat that hundreds of times.
Both approaches have their pros and cons.
With the first approach, you’re hunting for a mega-runner. Hundreds of decent coins cross your screen every day, and some of them go 5-10x. But you’re looking for that one coin that does 1,000x. The problem is that runners like that don’t spawn every day, so the wait can take a while.
With the second approach, you’re still hunting, but you’re looking for a solid coin that can give you 2-3x. Then you take your profits and move on to the next one. With this approach, you can make 10-30 trades a day.
I prefer the second one, where I have clear rules for buying and clear targets for selling.
I don’t need a 100x trade. I need a clear strategy that lets me consistently take 2-3x and repeat the process hundreds of times.
That’s why these are important in my strategy:
1/ Quickly assessing a coin’s strength and potential
How do you do that?
First, you need to understand which coins are pumping and why. You can learn this by analyzing coins that have already migrated. You also need to understand the current narrative.
2/ Buying below a $15K market cap
I’ll say it again: I’m not looking for 100x trades.
If a coin has the potential to reach a $40K market cap, I’ll buy it below $15K and sell around $30K to $40K, securing a 2x and moving on to find the next one.
There aren’t many 100x runners right now, but there are plenty of coins that top out around $40K. I’m adapting my strategy to the market we actually have.
3/ Keeping every trade as consistent as possible
I know exactly at which levels I’m buying and at which levels I’m selling.
I don’t re-enter the same coin, and I don’t add to my position. Every trade follows the same process.
This kind of approach is usually tested over a large sample size. If I make 100 trades in a month and 60% of them are successful, I'm in profit.
You should try different strategies and figure out what you enjoy and what works best for you.
But first, you need to understand how the market works. Spend 8-10 hours a day watching the Pulse tab and try to understand why certain coins are pumping.
Over time, you’ll find a strategy of your own.
Good luck!
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Useful links:
Axiom - here I trade
My X account