Here's the updated Pump Fun strategy guide with an explanation about meme coins, a bit of research, and a Stoic trading quote for inspiration.
Welcome to the Pump Fun strategy! This strategy is designed to help you take profits as the price of a meme coin goes up. You’ll sell parts of your coins at different levels, keeping a few coins in case the price "moons" (goes way up)!
Meme coins are known for being very risky. Most of them start with a lot of hype, but many eventually lose value and even go to $0. This means it's important to take profits as the price goes up, so you don’t lose everything if the price crashes.
Many meme coins are built with no long-term plan or real use, which can make their price unstable. For example, in 2021, over 90% of new meme coins launched saw major drops in value after the initial hype wore off. A popular meme coin, Squid Game Token, went up quickly and then crashed to nearly $0, causing people to lose a lot of money.
This is why the Pump Fun strategy helps you secure profits as the price rises, giving you a better chance of making money before the coin’s value drops.
With Pump Fun, you’ll sell parts of your coins at set points:
By the time you’ve reached Take Profit 3, you’ve made back your initial money. The last 25% is your "moon bag," which you keep in case the price goes up a lot.