Crypto,  Market Thoughts

It’s Time to Trade Like a Point Fighter

The last few weeks have felt completely different from the insanity that was happening on chain in the Solana ecosystem just 6 weeks ago.

6 weeks ago, it seemed like any decent meme was almost guaranteed to run to at least $3-5 Million market cap, with lesser meme’s still reaching the $1 mil mark before cratering to hell.

But now, things feel different.

Coins that have good memes, great charts, and good social media interaction, are getting jeeted to death the moment they even sniff $500k.

There are still outliers that are having pretty impressive, sustained runs… but they’re few and far between.

Where coins that caught traction were pumping for days just a few weeks ago, now they’re lifespan is being measured in hours.

I don’t know if it’s just a matter of too many meme coins being created which is diluting liquidity, or if the new entrants have just been rinsed already and now it’s just crypto natives losing money back and forth to each other.

Either way, the landscape is what it is, and that’s all that matters.

I’ve taken a bit of a washing on a few coins just in the last week because I’ve been trading like we were in the same environment as 6 weeks ago… we’re not.

At this point, at least for the time being, I think the strategy going forward should be two-fold.

1 – Sell at the first sign of weakness after you’ve secured anywhere between a 50% – 2x gain.

2- Only buy charts that have spiked, crashed around 80%, and have started to form a flat or rounded bottom.

This coin is a perfect example. 

A buddy told me about it in the DM’s and I bought the very bottom after the initial crash. My first buy of $200 was at $35k market cap, and I grabbed two more orders worth of $100 each at or below $50k, for a $400 total investment.

About 5 hours later, when it spiked up again, I could have sold that position for $4000-$4500.

Unfortunately, I didn’t have access to my phone most of the afternoon, AND I was playing things like I had been a few weeks ago.

I fully expected this coin would easily crack up to 2 or 3 million.

Luckily, I had such an incredible entry that I was able to sell for breakeven, once I finally admitted to myself that it wasn’t coming back.

Had I been being more diligent in adapting to existing conditions in recent days, I could have acted accordingly and secured a very nice profit. 

Instead, I took a valuable lesson from it.

The move going forward isn’t to try and land knockout blows in the form of 10x, 50x, or 100x gains; the gameplan going forward is to grow my account by landing small calculated shots in the form of 50% – 2x gains.

It’s time to protect the bag and fight like Floyd Mayweather, jumping in and landing punches (trades) that put points on the board, then quickly jumping back out to avoid the counterpunch (jeets dumping like cowards).

Those 1x profits over and over will add up.

Does it give the same dopamine rush that nailing a 20x does?

Obviously not.

But we’re not here for dopamine. We’re here to secure a better future. 

So that’s what I plan to do:

  • Stay diligent
  • Take small gains and compound them
  • Don’t get wrapped up in Twitter sentiment
  • Trade my own plan

If I can just stick to that then I have no doubt I can be successful, even in these difficult market conditions.

If you’re trying to trade this stuff right now too, best of luck.

Until next time,

Fractal

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