How Not to Lose Money While Trading Memes

Zotto
3 min readNov 22, 2024

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A Survival Guide for the Chronically Online

Let’s face it — we’ve all been there.

You see a cute dog coin pumping 500%, FOMO in at the top, and watch your portfolio turn into a lovely shade of crimson.

If you’re tired of being the person who buys high and sells low, buckle up. This guide is your ticket to slightly less painful meme trading.

Step 1: Understand Market Psychology

Don’t be the one who sees a vertical green candle and thinks, “This is the perfect time to go all in!” Here’s the thing: if your grandmother is talking about a memecoin, you’re probably too late.

Key patterns to observe:

  • Study the price appreciation. Is it gradual or exponential?
  • Rely on TA to identify key levels
  • Your favorite crypto influencer hasn’t tweeted about it… yet

Step 2: Understand Position Sizing

Understanding volatility and adjusting portfolio allocation plays a crucial role in preserving your capital. Consider these observations:

  • Newer memecoins are subject to higher volatility
  • More established memecoins can be stable over the course of time

Choose your portfolio allocation based on your risk appetite.

Step 3: DYOR

Before aping in, take five minutes to:

  • Check rugcheck.xyz for Solana memecoins and check.quillai.network for Base memecoins (because getting rugged isn’t as fun as it sounds)
  • Look at holder distribution using gmgn.ai (if one wallet has 95%, they’re not your friend)
  • Verify if liquidity is locked
  • Check the community vibe
  • Monitor TweetScout_io for social signals

Step 4: Market Context

Understand the broader market conditions:

  • Small-cap asset behavior
  • Correlation with larger market trends
  • Check “meme” mindshare on kaito.ai
  • What are the emerging narratives? (nostalgia, animals, whatever the cool kids are into)

Don’t get REKT checklist:

  • Is the price in a vertical line? Study the price action
  • Did you check basic security (rugcheck, liquidity, holders)?
  • Do you have clear entry and exit points (both up and down)?
  • Is your position size reasonable?
  • Is the overall market supportive?
  • Does the community seem genuine?
  • Have you set stop losses?

Get an edge using Zotto

With Zotto’s Sniperbot, you can discover new memecoins and automate your memecoin trades.

How to get started with Snipe:

To set up your Sniper bot:

  • Configure your filters: Set the market cap, No. of makers, Liquidity
  • Set the amount of USDC you want to use per token and the no. of tokens you want to snipe
  • Set your TP and SL
  • Launch your Sniper Bot

Disclaimer: This content is for educational purposes only and should not be interpreted as trading advice. Markets involve significant risk, and all trading decisions should be based on individual research and risk tolerance.

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Zotto
Zotto

Written by Zotto

Automated Memecoin Trading Super App: Snipe memecoins and leverage your trades up to 50x.

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