The biggest mistake retail traders make with memecoins is not choosing the wrong project, but entering without understanding the context. Most people buy after a strong price move, when volume is extreme and everyone is talking about the token. At that point, the risk-to-reward is usually no longer attractive.
Memecoins move based on narrative, timing, and liquidity, not fundamentals. When a memecoin is trending across timelines, groups, and chats, many times the accumulation phase is already over and distribution has begun.
Another common mistake is having no plan:
– No clear profit targets
– No defined risk
– Holding while hoping for “the next 10x” even when the chart says otherwise