Author: BTC_Chopsticks
Many early investors who bought tokens like $Pnut have become millionaires by holding on to them until now. However, most people have missed the opportunity due to their inability to properly lock in profits.
In the investment world, it is common to find potential coins that can bring 100x returns, but ultimately end up losing money. This is all due to a fatal mistake - not knowing how to properly lock in profits.
The root of the problem:
Traders often face two choices:
1. Learn from mistakes, but at a high cost.
2. Give up due to frustration and miss more opportunities.
To avoid such dilemmas, you need to learn how to lock in profits without disrupting the chart trend, and find reasonable entry points 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 tokens.
Focus on the tokens with the largest price drops in the past hour.
Skip tokens with a market cap between $30K-$40K.
The core goal is to find tokens that still have potential after a strong decline. Tokens that have initially dropped 70-90% and then rebound can potentially bring 50-100x returns.
Step 2: In-depth analysis of the token
1. Check the token holding structure
Use the tool (https://t.me/rickbotsol) to query token information:
- The total share of the top 10 holding addresses should not exceed 15-20%.
- Liquidity should be locked or burned.
2. Verify social media
- Check the token's Twitter and Telegram communities to understand the activity and community support.
- Don't hesitate to directly contact the project team to inquire about their future plans.
3. Beware of tokens with initial price surges
- Some tokens experience a short-term surge after listing on Raydium, but then crash. These tokens require special caution.
Step 3: Entry strategy
Accurate entry requires the use of Order Blocks, using 1-hour, 4-hour, 12-hour or even longer timeframe candlestick charts.
Choose one of the following three entry points:
- When the candlestick touches the top of the Order Block.
- When the candlestick touches the middle of the Order Block.
- When the candlestick 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 4: Lock in profits
1. Early stage: Lock in a portion of the profits when the price reaches 2x the entry point.
2. Later stage: Continue to hold a portion of the position, or lock in profits in batches (DCA strategy).
Conclusion
Whether it's the timing of entry or the profit-taking strategy, the key to trading is rationality 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 systems. Take action now, and let each trade be the starting point for your next success!
