Risk & safety
When should I sell a memecoin?
Sell by a rule you wrote before entering, because the moment itself is the worst time to decide. Four rules cover almost everything: take part of the position off at a defined multiple, keep a hard stop underneath, exit on a time limit if nothing happens, and exit immediately if the reason you bought stops being true.
The four rules
- Scale out. Sell your original stake at a defined multiple - many traders use 2x - and let the remainder run. After that the position cannot lose you money, which changes how you hold it.
- Hard stop. A price at which you are out, set before entry and not moved down. Moving a stop down is how a small loss becomes the position you still hold months later.
- Time stop. If nothing has happened within your window, exit. Dead positions cost attention and occupy the size you would rather deploy.
- Thesis stop. You bought because tracked traders were entering. They have all exited. The reason is gone, so the position should be too.
Why exiting is harder than entering
Entering is optimism, which is easy. Exiting is admitting something. Selling a winner means accepting you might have made more, and selling a loser means booking the loss as real. Both feelings push toward doing nothing, which is why the rules have to exist before the position does - and preferably as automated exits rather than intentions.
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