Whether it's the entry timing or profit strategy, the core of trading lies in rationality and precise analysis.
Written by: BTC_Chopsticks
Many early investors who bought tokens like $Pnut, if they held on until now, would have become millionaires. However, most people missed the opportunity due to failing to correctly lock in profits.
In the investment world, finding potential coins and getting 100 times the return but ultimately losing is a common phenomenon. All this is due to a fatal mistake—failing to lock in profits reasonably.
The root of the problem:
Common choices for traders:
1. Learn from mistakes, but at a high cost.
2. Giving up on attempts due to setbacks, missing more opportunities.
To avoid such dilemmas, you need to learn to lock in profits without damaging the chart trends, and find reasonable entry points to avoid being forced to cut losses.
Step One: Find the target token
1. Open the website (https://dexscreener.com) and choose a chain (e.g., Solana).
2. Use the 'New Pairs' label to browse the latest listed tokens.
Focus on the tokens with the largest drop in the past hour.
Skip tokens with a market cap in the $30K-$40K range.
Core objective: Find tokens that still have potential after a strong decline. Tokens that initially drop by 70-90%, if they rebound again, can bring returns of 50-100 times.
Step Two: In-depth analysis of the token
1. Check the holding structure
Use the tool (https://t.me/rickbotsol) to query token information:
The total share of the top ten holding addresses should not exceed 15-20%.
Liquidity should be locked or destroyed.
2. Check social media
Check the token's Twitter and Telegram community to understand activity levels and community support.
Don't hesitate, directly contact the project team to inquire about future plans.
3. Be cautious of early surging tokens
Some tokens surged shortly after being listed on Raydium, but then fell sharply. Such tokens should be approached with caution.
Step Three: Entry Strategy
Precise entry requires judgment based on the Order Block, using 1-hour, 4-hour, 12-hour, or even longer candlestick charts.
Choose one of the following three entry points:
When the candlestick chart touches the top of the order block.
When the candlestick chart touches the middle of the order block.
When the candlestick chart touches the bottom of the order block.
Recommended tool: Use the trading platform provided by (http://gmgn.ai) to quickly identify and execute trading strategies.
Step Four: Lock in profits
1. Early stage: Lock in some profits immediately when the price reaches 2 times the return.
2. Later stage: Continue holding part of your position, or lock in profits in batches (DCA strategy).
Conclusion
Whether it's the entry timing or profit strategy, the core of trading lies in rationality and precise analysis. With reasonable tools and methods, you can effectively reduce risks and improve profitability.
Remember: Successful investors are not born that way, but continuously optimize their trading systems through practice and learning. Start taking action now, making every trade your next success starting point!