basic-rules

Important rules for understanding ѕhitcoins and memecoins

Be prepared for potential losses, leading to getting rekt

• Yes, brace yourself for this reality, as initial deals may not yield profits. The market sees a constant influx of projects, most of which are prone to being rug pulls (RUGs). Even if a project isn't a RUG, its value could still plummet to zero.

Invest only what you're willing to lose to avoid getting rekt

• Never invest your last funds in hopes of striking a major profit. Allocate only a portion of your capital. Shitcoin trading is rife with substantial risks, so consider this carefully before you start trading.

Anticipate FOMO or you might get rekt

• Daily, numerous projects may provide returns of 5x, 10x, or even 100x, but you'll probably miss out on many of them. FOMO will hit you at this point, but over time, you'll learn to manage it, especially after honing your ideal trading strategy.

Avoid investing large sums to prevent getting rekt

• It's wiser to invest in 20 coins with smaller amounts (trading between 0.02 and 0.05 ETH). Some of these might even cover your initial investment, outperforming purchasing just 1 or 2 tokens and facing potential losses. Overinvestment can lead to bad decisions due to pressure. If you're confident about a token, split a larger amount into various purchases at different values. Otherwise, you risk becoming a source of liquidity for others during market exits.

Monitor market capitalization and liquidity to mitigate risk of getting rekt

• Greater liquidity and market capitalization indicate lower volatility and potential profits. Conversely, lower liquidity and market capitalization suggest higher volatility and potential profits, but also factor in the possibility of rapid declines.

Secure profits opportunistically to avoid getting rekt

• Avoid holding onto a single coin for an extended period. Remember that it's a shithcoin that can plummet in value at any moment. When the chance arises, seize the opportunity to lock in gains.

Don't strive to catch every coin, or you'll get rekt

• Determine your optimal trading approach. Trading with three to five coins a day can replace a regular job, but prioritize coins you're highly confident in rather than attempting to catch every opportunity.

Periodically change your trading wallet to minimize risk of getting rekt

• This practice enhances security and reduces the risk of attracting copy traders and bots, which may not be advantageous.

The fundamental principle of trading is seeking moon projects

• One successful venture can outweigh 5-10 unsuccessful ones. Utilize appropriate tools to increase favorable outcomes and minimize unfavorable ones.

Effective shitcoin trading relies on sound risk management

• Keep in mind the aforementioned principles and remember that any token that meets all criteria could still be a RUG, while a token that appears suspicious might yield profits. Achieving 100% success in shitcoins is unrealistic; the key is one successful trade outshining several unsuccessful ones. Remember to secure profits, analyze wins and losses, and you can establish stable income through shitcoin trading.