Why You Are Still LOSING MONEY On Pump.Fun [Common Newbie MISTAKE]
Summary
TLDRThe 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
- π High slippage settings on Pump.fun can result in buying and selling at unfavorable prices, eating into potential profits.
- β οΈ Using very high slippage is only advisable for immediate sniping, otherwise keep it low to maximize gains.
- π On Pump.fun, using tools like Photon to view 1-second charts can help in making more informed buy and sell decisions.
- π§ Adjusting slippage to around 5% and setting lower priority fees can help reduce unnecessary costs and improve trade outcomes.
- πΈ Transaction fees, especially for small trades, can significantly impact overall profits, so keep them as low as possible.
- π Nearly all coins on Pump.fun trend back down to zero eventually; taking profits along the way is crucial.
- β³ Be patient and take profits strategically, particularly when you notice red candles or pullbacks in price.
- π« If a coin is not showing momentum and is going sideways, it is usually better to cut losses and move on.
- π₯ A low holder count for a new coin can indicate potential coordinated sell-offs, leading to sharp price drops.
- π 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.
Outlines
π Common Pitfalls in Crypto Trading
This paragraph discusses the frustrations of trading various tokens on the Pump.fun platform, highlighting the experience of seeing wallet balances decrease despite successful trades. It introduces the videoβs goal to explain why users often lose money on the platform, primarily due to overlooked factors, such as high slippage settings during buying and selling. The paragraph emphasizes the importance of understanding these settings to avoid significant losses.
π§ Using Tools to Optimize Trades
This section focuses on using advanced tools like Photon for trading on Pump.fun. It advises traders to lower their slippage settings to around 5% to avoid unnecessary costs and discusses adjusting priority and bribery fees to optimize transaction costs. The emphasis is on minimizing fees and slippage to preserve profits, particularly when trading smaller positions.
π‘ Take Profits and Manage Risk
This paragraph stresses the importance of taking profits during trading. It explains that most coins on Pump.fun eventually trend back to zero, so traders should take profits as the value rises. The advice includes setting sell percentages to manage trades effectively and being patient to sell at the right moments to avoid holding coins that will eventually lose value.
β οΈ Cutting Losses and Moving On
This part discusses the necessity of cutting losses or breaking even when trades are not performing well. It suggests monitoring transaction volumes and holder counts to determine if a coin has potential or if it is better to move on. The paragraph highlights the importance of recognizing when a trade is not working out and the benefits of moving on to other opportunities.
π Understanding Holder Distribution
This paragraph delves into the significance of holder distribution in meme coins. It warns against coins with low holder counts, as they are prone to coordinated selling and rapid price drops. The advice is to seek coins with a higher number of holders to ensure better distribution and stability, reducing the risk of sudden dumps.
π The Potential of Meme Coins
This section discusses the current trend and potential of meme coins in the crypto market. It emphasizes that meme coins have been performing well and offer daily trading opportunities, unlike long-term holds like Solana. The paragraph encourages traders to educate themselves to capitalize on the remaining months of the bull market, hinting at available resources for learning more about successful meme coin trading strategies.
π Education and Continuous Learning
The final paragraph promotes the importance of continuous education in crypto trading, particularly with meme coins. It mentions the availability of a comprehensive training program with numerous modules on Pump.fun, encouraging viewers to invest in learning to gain an edge in trading. The section concludes by inviting viewers to subscribe to the YouTube channel for more tutorials and updates on effective trading strategies.
Mindmap
Keywords
π‘Pump.fun
π‘Slippage
π‘Meme Coins
π‘Priority Fees
π‘Photon
π‘Taking Profits
π‘Rug Pull
π‘Market Cap
π‘Holder Count
π‘Break Even
Highlights
Understanding slippage and its impact on trades is crucial. High slippage settings can significantly cut into profits, especially on fast-moving platforms like Pump.fun.
Setting slippage too high can push your trade through at a much higher price than expected, which can erode potential gains.
Lowering slippage to around 5% can help ensure transactions go through while protecting profit margins.
Transaction fees, including priority and bribery fees, should be minimized to avoid eating into profits, particularly when trading small positions.
It's essential to take profits during upward trends before the coin potentially crashes back to zero, which is common with Pump.fun coins.
Using tools like Photon to monitor new coin launches and set appropriate trading parameters can provide a strategic advantage.
Proper holder distribution is vital; coins with only a few holders can see dramatic price drops if just a couple of them sell.
Coins on Pump.fun often trend towards zero over time, so timely profit-taking is key.
If a coin is not showing momentum or is moving sideways, it's often better to cut losses or break even rather than holding on.
Monitoring holder count and transaction volume can provide insights into a coin's stability and potential for coordinated dumps.
Educating oneself on meme coin trading strategies is critical for navigating the fast-paced market and maximizing profits.
The current bull market for meme coins might not last long, making it important to learn effective trading strategies quickly.
Utilizing advanced trading settings and being patient for the right market conditions can improve trading outcomes.
The speaker offers a comprehensive training program with numerous modules focused on Pump.fun strategies, aiming to fill knowledge gaps and improve trading success.
Regularly updating trading knowledge and staying informed about new strategies can provide a competitive edge in the volatile meme coin market.
Transcripts
so you've been trading for a while on
pump. fun you've tried your fair share
of trump token celebrity tokens and
you've had some that are rugged but
you've had some where you've made some
good multiples and you definitely
remember selling for a price higher than
what you bought in for much like this
coin but then you check your wallet and
the balance is just lower than when you
first started sometimes a lot lower
sometimes you're near zero and you're
like what the hell is going on this
video I'm going to show you exactly why
a lot of you keep losing money on pump.
fun and it's for a few simple reasons
that you're just overlooking so if
you're in this situation where Wallet
balance keeps going down and you don't
think you're doing too bad then
definitely watch the entirety of this
video so we're going to start simply
with the buying and selling so let's say
I was looking to buy and sell this coin
and you're using pump. fund and you
connect your wallet you've got the
option here in the top right to connect
your wallet so let's say we're using the
native platform when you come here on
the buy and sell you've got the both
buttons here you can see here you can
buy and sell exactly what you want in
Soul where when you're selling you can
sell a specific percentage but you've
got a Max slippage button here so this
is the the first reason when you click
on this you'll find a lot of the time
the default settings are a lot higher
sometimes it could be 20 or 25% or
sometimes you're following people who
have told you to do it higher now the
only time I use very high slippage with
pump. fun is if I'm doing an immediate
snipe literally when the dev's buying
I'm just buying straight after because I
think something's going to move and pump
really really quickly but otherwise it's
rare you need to use high slippage
amounts like this and the problem with
the slippage so let's say we set it at
25% the problem with this is very very
simple when you then buy and you think
you're buying for one let's just call
the value of the coin one at that
particular moment in time and you set
your slippage to 25% or even higher it
will actually push your trade through at
something much higher sometimes it could
be 1.2 or 1.25 doesn't seem like a big
deal but a lot of the time on pump. fun
where we're barely looking to make a 2X
um as almost a best case scenario
sometimes three four or 5x if it's going
really well but barely it will cut into
that 2x a lot and if you're doing 25% on
the buy side 25% on the sell side and
then you've got some commission fees to
pay as well in terms of priority fees
and stuff like that you're not going to
be left with very much by the time you
sell and also because the price is
moving so quickly which you can't see
here on a standard pumped up fun chart
that's another reason why you're
probably buying higher than what you
think and I'll show you a few uh really
good tricks to kind of get around that
issue so I'm going to jump here to uh
Photon and this is really good when it
comes to trading on pump. fun the link
is in the description below so just
click on the link and you'll come to a
page like this where you can go onto new
pairs now here what you can do is if you
click on dex's here you can choose pump.
fun so literally all you'll see if you
reset all of this it just new launches
onp pump. fun I've got my own filters
that I use and set up and I've shared
that in a previous video but basically
here when you click on one of these new
tokens let's just click on another Trump
one cuz that's all we ever see here you
can see here we're on a 1 second chart
now on a one second chart because
everything's happening so quickly when
you click your buy order and it takes a
few seconds to go through then rather
than seven you might be buying for
8,000 so one of the things you need to
consider here is on the right hand side
where it says buy and sell you can uh do
some advanced settings here which are
better than just general pump. fund way
better and here you can set your
slippage but I would suggest lower so if
you're buying something and it's a few
minutes into the new coin launch so it's
not literally a second after launch go
with a lower slippage way lower go for
something like 5% try trading with that
and see if your transaction goes through
a lot of the time for me if I'm trading
these slower moving uh coins then 5% is
plenty and here on the priority fee you
can adjust this if you want to 01 and
015 bribery and if you're transaction
going through that's fine if you find is
going through a little bit slow
depending on your trading Style and what
type of coin you're actually trading you
can increase this a little bit for
example priority you can 2x so or you
basically just type in
02 and here for briber you can type in
02 as well but just remember anytime you
increase these types of fees it's
cutting into your margin again because
especially if you're just trading with
very small positions if you're buying
and selling for $20 here and there and
you're uh getting charge 01 or 02 salana
you have to remember what that converts
to so for example 05 salana do the maths
if you multiply that by 160 you're
coming into around $8 in just
transaction fees so if you're getting $8
cut off your position every single time
and you're only tra trying to trade $20
positions you're going to be in a bit of
trouble so you need to set these as
default or even reduce these and again
as long as the transactions going
through it doesn't matter the whole
point of setting this up is just to make
sure it goes through so set it up as low
as possible for for your own trading
style so in terms of position style
you're trading and if you find it's not
going through increase it a little bit
but don't just set this ridiculously
high otherwise it's going to cut into
all of your profits so be very careful
with that next major reason and this is
a big one as well you can see this coin
doing particularly well but most coins
at some point 20 30k they'll have dips
and they'll go back down then back up
then back down and then eventually
they'll they'll turn back to zero it
doesn't matter if it's now then after it
gets the radium they all turn back to
zero now if I told you that literally
nearly every single coin on pump. fun
Trends back down to zero what do you
need to do during the phase that things
are still going up before they take a
turn you must take profit profits people
still don't do this because they think
every single coin is going to be a
celebrity coin that goes to 10 million
it's not it's a very very small
percentage as it's going up here if you
hell from here all the way to here
that's really good but that's not good
trading though you really should take
profits because you don't know when this
is going to turn and head straight back
down to zero as a lot of the Pumped Up
fund coins do so at 20 for example 30k
take some profits when you go into the
sell button here and scroll down you can
see it set at 25% and you can adjust
these buttons If you want to so you can
even make it like 10 10% 20% 50% Etc so
you can mess around and play around with
these at the same time you need to be
patient with pump. fun because things
move so quickly in literally seconds to
a few minutes if it's literally going up
in a straight line and you've not seen
any selling don't just randomly take
profits I mean take profits if you're
seeing a pullback you're not seeing any
on here so you could have easily held
through this because there literally is
no pullbacks but if you look at another
ones let's just click on another random
one you probably seeing some of these
other ones yeah you can see here and
when we got to 25 look how sharp it sold
off so as it was beginning to sell off a
little bit you saw a couple of red
candles take profits so if you took
profits there you're still doing all
right but if you got in very early let's
say you got in at 13k and you didn't
take profits because this could have
kept going up but if you saw some
selling and you took profit you still
made from here to here and then you
could sell out of your position and
still move away making money but if you
didn't take profits and you're just
holding you're going to be holding for a
loss here because all of your position
is still in big big mistake most people
make when it comes to trading on pump.
fun so the main take home point is use
proper tools photon is one example Link
in description set your slippage
properly don't just set it on very very
high because that's just going to cost
you a lot of money reduce everything
down reduce the priority fees bribery
fee uh slippage everything right right
down especially if you're trading very
small positions if your transaction
doesn't go go through it's not the end
of the world um when you when it comes
to the buy side anyway it's okay you can
move on to another coin you'd rather
actually make real profits and not have
all your profits eaten into and then
next you must take profits along the way
you have to take profits along the way
with pump. fund and the reason is very
simple even more than Dex screen is
because everything goes to zero and they
go to zero very very quickly obviously
after they pumped we don't know how high
it's going to pump and because you don't
know you must take profits anytime you
see weakness in terms of selling it so
so far we've talked a lot about buying
taking profits but what if the trade is
not working out let's talk about that as
well so let's look at some of these that
are a little bit lower market cap and
let's see what we can do here
so this is now at 9k and let's say a few
minutes have gone by and it's doing
nothing so it's going sideways doing
nothing and you look down you scroll
down to transactions click on
transactions here and um you see you can
uh scroll here by the way and you can
sort it by descending and ascending as
well so if you want the most recent for
example you can sort it out that way too
so if you just click on the top you get
the most recent ones so let's say you
had a look here it's been 2 3 minutes
nobody's buying
anything all the transactions have gone
way down the holders count still looking
low so you're looking at the volume here
you're like what's going on here so so
what you need to do here if it was going
sideways this one's still going up a
little bit but if it's going down or
going sideways and doesn't look like one
of those Runners the runners that just
keep going up within a few minutes on
pump that fun if it's not
that this very rarely on pump. fun have
I ever seen a coin that goes up stays
sideways for 30 minutes goes up a bit
stay sideways for 30 minutes doesn't
work like that on here everybody's too
gy on here to let a just randomly just
stay at higher levels doing nothing very
very rare I see that after a new launch
very rare so what you should do is cut
losses it's another good tip as well or
break even depending on where your entry
is but just move on more times than not
at least 95% or more of the time when
I've done this myself with my trading
and just moved on if a coin's not
working out it's usually being the right
thing to do cuz like I said they all go
back to zero and if there's no more
momentum so the momentum this clearly
has momentum this Co but if you have no
momentum it's going to go back down and
another tip while I'm at it I mean so
many things I can share with you guys
but another tip here is the hold account
which I've discussed before as well but
if it's a new coin launch and it's at
10,000 or 12,000 so the market Cap's
okay but the hold account is like four
or five or six stay well away like the
hold account needs to go 20 30s 40s
that's natural good distribution if you
just got four or five five people
holding it and it's a market cap of like
12K like this is now and there just four
holders what do you think is going to
happen they're all going to coordinate
and sell at the same time and dump that
coin and take profits but if it's 30 or
40 holders if two of them sell the price
will go down a little bit but not that
much it'll give you time to get out but
there's only five holders and two of
them sell and the only ones left are you
the dev and one other random person is
going to be at 8,000 before you even
have a chance to sell so that's another
key Point as to why people lose money
because they get involved in the coins
where there's just not enough hold
account not enough distribution just the
general point about meme coins in
general look this is the cycle of meme
coins it's obvious it should be obvious
to anybody now like mean coins are the
thing in crypto that been doing really
well the last 12 months and it's set to
continue all the attention is on mem
coins so even you saw recently with the
celebrity meta as well and the great
thing about this compared to any other
cryptocurrency it's not like buying soul
and then waiting 6 to 12 months and then
selling it you can literally make money
daily like because you've got deck
screen and because you've got pumped up
fun if you know what you're doing and
you understand how mcoin trading works
you can absolutely make money daily but
the thing is you need to educate
yourself if you've been mostly losing
money with mem coins then you need to
fill in those gaps and you need to
consider whether it's worth it learning
how to do this properly because we might
only have 6 to eight months left of this
bull market so there's not long now to
cash in as much as possible that's why
second link in description on my
training program I've probably got close
to 100 modules now just on pump. fun
there's 14 already complete and I'm
adding another three or four more so
there's going to be about 20 tutorials
by the time I'm finished literally
everything you need to know about pump.
fun and a lot of people just they just
don't know this information that's what
gives you an advantage and an edge by
the way if you invest in this you get
lifetime access so all these last three
or four sections these are all bonus
ones I've continued to add if I come
across any new strategies that are
working when it comes to mem coin
trading I add them here so if you
interested second link in description
below I have many many free video
tutorials on my uh YouTube channel as
well so make sure you subscribe turn on
notifications because I'm regularly
going to release new tutorials like this
one so if you found this helpful make
sure you subscribed and if you're new to
my channel check these out they're very
very comprehensive and some of these
literally take you through everything
you need to know on some of these
platforms that's it for this one thanks
for listening
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