Why You Are Still LOSING MONEY On Pump.Fun [Common Newbie MISTAKE]

Summary

The video explains why many people lose money on Pump.fun, a crypto trading platform. Key reasons include using high slippage rates, which eat into profits, not taking timely profits, and improper trading strategies. The video emphasizes setting lower slippage and fees, using tools like Photon for better trade execution, and being cautious with low-holder coins to avoid coordinated dumps. It also highlights the importance of taking profits and cutting losses promptly. The video provides detailed tips for optimizing trades on Pump.fun and encourages education on meme coin trading for better results.

Takeaways

• 📉 High slippage settings on Pump.fun can result in buying and selling at unfavorable prices, eating into potential profits.
• ⚠️ Using very high slippage is only advisable for immediate sniping, otherwise keep it low to maximize gains.
• 📊 On Pump.fun, using tools like Photon to view 1-second charts can help in making more informed buy and sell decisions.
• 🔧 Adjusting slippage to around 5% and setting lower priority fees can help reduce unnecessary costs and improve trade outcomes.
• 💸 Transaction fees, especially for small trades, can significantly impact overall profits, so keep them as low as possible.
• 📈 Nearly all coins on Pump.fun trend back down to zero eventually; taking profits along the way is crucial.
• ⏳ Be patient and take profits strategically, particularly when you notice red candles or pullbacks in price.
• 🚫 If a coin is not showing momentum and is going sideways, it is usually better to cut losses and move on.
• 👥 A low holder count for a new coin can indicate potential coordinated sell-offs, leading to sharp price drops.
• 📚 Educating oneself on meme coin trading and using proper tools and strategies can significantly improve trading outcomes on platforms like Pump.fun.

Q & A

What is the main reason why users keep losing money on Pump.fun?

Users often lose money due to high slippage settings, not taking profits, and not cutting losses quickly enough.

How does setting a high slippage percentage affect your trades?

Setting a high slippage percentage can push your trade through at a much higher price than expected, cutting into potential profits.

When is it appropriate to use high slippage settings on Pump.fun?

High slippage settings are appropriate when doing an immediate snipe, buying straight after the developer because of expected quick price movement.

What are the recommended slippage settings for trading on Pump.fun?

It is recommended to use lower slippage settings, around 5%, especially when trading slower moving coins.

Why is it important to adjust priority and bribery fees when trading small positions?

Adjusting these fees is important because high fees can significantly cut into profits, especially when trading small positions.

What is the significance of taking profits during an uptrend?

Taking profits during an uptrend is crucial because most Pump.fun coins eventually trend back down to zero, and not taking profits can result in losses.

How should you react if a trade is not working out?

If a trade is not working out and the coin is moving sideways or down, it's advisable to cut losses or break even and move on to another trade.

What does a low holder count indicate about a new coin launch?

A low holder count indicates poor distribution and increases the risk of coordinated selling, which can lead to a sharp price drop.

Why is it rare for coins on Pump.fun to stay at high levels doing nothing?

It's rare because the platform's traders are typically looking for quick gains and will sell off if the coin is not showing upward momentum.

What advantage does using tools like Photon offer when trading on Pump.fun?

Using tools like Photon provides better visibility and control over trades, such as setting advanced slippage and fee settings, which can help optimize trading strategies.