Lecture Notes: Trading Meme Coins

Key Strategies in Trading Meme Coins

• Hundreds of strategies exist, but only a few are consistently profitable.
• The goal is to be profitable over weeks or months, not daily.
• Strategies tailored for limited trading budgets.

Importance of Flexibility

• Meme coin trading environments constantly evolve; strategies need to adapt.

Tools and Software

• DexScreener: A simple, user-friendly tool for filtering meme coins.
  • Focus on Solana meme coins.
  • Filters to apply: Blockchain (Solana), DEX (Radium), Maximum age (2 hours), Market cap (max. $65,000).
  • Volume filter to avoid scam bots (min. $40,000).

Evaluating Potential Investments

• Use "has profile" filter to ensure legitimacy.
• Beware of scams: Check charts and market cap.
• Avoid coins with unrealistic market cap spikes.

Identifying Scams

• Rapid price rises without dips are red flags.
• Use tools like Soul Scanner to verify legitimacy.

Trading Strategy: Buy the Dip

• Focus on price charts, not time-specific metrics.
• Look for strong initial performance and growth patterns.
• Consider psychological price levels (e.g., 1 million as a support level).
• Use Fibonacci retracement levels for pullback estimates.

Technical Analysis Insights

• Identify pullback zones: 50-60% retracement common.
• Use price range tools on charts.
• Swing highs and lows indicate levels of support and resistance.

Trading Execution

• Use trading software (e.g., Photon) for precise trade placements.
• Consider using a manual trade approach for better control.
• Adjust slippage settings to ensure trade executions.

Risk Management

• Balance risk and reward: set stop losses and profit targets.
• Avoid "bag holding" by setting automatic take-profits and stop-loss orders.

Volume and Price Action

• Monitor volume for signs of sustainability or potential drops.
• Look for impulsive moves indicating potential price increases.

Example Trades and Analysis

• Detailed examples of evaluating coins like "Honey Soul" and "Nate Bag."
• Importance of patience in waiting for the right trading signals.

Conclusion and Additional Resources

• Recap of trades and lessons learned.
• Importance of education and continued learning in trading strategies.
• Mention of a comprehensive trading program for further learning.