Author: BTC_Chopsticks
Many early investors who bought tokens like $Pnut would have become millionaires if they had held on to them until today, but most people missed out by failing to properly lock in profits.
In the investment world, it is not uncommon to find potential coins, get 100 times returns, but end up losing money. All this is due to a fatal mistake - not being able to properly lock in profits.
The root of the problem:
There are two common options for traders:
1. Learn from your mistakes, but they are costly.
2. Give up trying due to setbacks and miss more opportunities.
To avoid this kind of dilemma, you need to learn to lock in profits without disrupting the chart trend and find a reasonable entry point to avoid being forced to sell at a loss.
Step 1: Find the target token
1. Open the (https://dexscreener.com) website and select a chain (such as Solana).
2. Use the “New Pairs” tab to browse the latest listed tokens.
Focus on the coins that have lost the most money in the past hour.
Skip tokens with market cap in the $30K-$40K range.
Core goal: Find tokens that still have potential after a strong decline. A token that initially plunged 70-90% may bring a 50-100 times return if it rebounds again.
Step 2: In-depth analysis of the token
1. Check the coin holding structure
Use the tool (https://t.me/rickbotsol) to query token information:
- The total share of the top ten coin holding addresses should not exceed 15-20%.
- Liquidity should have been locked or destroyed.
2. Check social media
- Check out the token’s Twitter and Telegram groups to see activity and community support.
- Do not hesitate to contact the project directly to inquire about future plans.
3. Be wary of tokens that skyrocket in the early stages
- Some tokens skyrocketed in the short term after being listed on Raydium, but then plummeted. Such tokens need to be treated with special caution.
Step 3: Entry Strategy
Accurate entry requires the use of order blocks to make judgments, using K-line charts of 1 hour, 4 hours, 12 hours or even longer.
Choose one of the following three entry points:
- When a candlestick hits the top of the order block.
- When the candlestick hits the middle of the order block.
- When the candlestick hits the bottom of the order block.
Recommended tools: Use the trading platform provided by (http://gmgn.ai) to identify and execute trading strategies more quickly.
Step 4: Lock in profits
1. Early stage: lock in some profits immediately when the price reaches 2x profit.
2. Later stage: Continue to hold part of the position, or lock in profits in batches (DCA strategy).
in conclusion
Whether it is the entry time or profit strategy, the core of trading lies in rational and accurate analysis. Through reasonable tools and methods, you can effectively reduce risks and improve profitability.
Remember: successful investors are not born that way, but through practice and learning, they constantly optimize their trading system. Take action now and make every transaction the starting point for your next success!
