Trading

how to catch the pump without getting dumped 🚀💀

1/5

you've seen this chart before. over and over. 

If you traded it, you either

✅ Got in early & exited near the top (legendary)
🔁 Got in early & roundtripped it (it happens)
📉 Got in late & lost 90% (ouch!)

but what if...

...there was another way. 

2/5

if you're on farcaster, finding alpha is the easier part. it is timing the alpha that's harder. There are 3 tools every trader should have:

🛑 Stop Loss – cut the downside
📈 Laddered Sells – take profits in steps
🔁 Trailing Stop – lock in profits as price trend reverses

so, how different would your trades have looked if you had these tools in place? Let's take a few scenarios 🤔

4/5

If you were early and got in in the first hour or two. both conservative and the moonshot approach gave you good returns. the moonshot much more as it has exits set at a much higher level. 

if you got in somewhere in hour 4 or 5 in the middle of the ramp up, you still made decent returns. 

the interesting thing is if you got in the last hour as price ramped up, you would have ended up making more with the conservative approach as it takes profits sooner. 

also, the trailing stop loss acts as a control where when the price trend reversed, it sold the gains and got out of the position.

3/5

Let’s run two real strategies on this exact chart with stop loss and laddered sells in place

🔹Conservative: with sells at +20%, +50%, +100%, +1000%, +10000%
🔸Moonshot: with sells at +20%, +50%, +100%, +1000%, +10000%

Both had a stop loss at 10% which traces the price as it increases. i.e. lets say a $100 token price rose to $200, the stop loss will be updated to $180

so, how do these 2 strategies perform... read on 👇