VI. Common Questions

As you read through the guide and start trying out actual trades, you’ll still encounter various doubts and challenges. The unpredictability of the Memecoins means there’s no “foolproof” strategy. This section addresses common questions to clarify misconceptions and set realistic expectations, helping you stay calm and rational in practice.

1. Why Does Smart Money Make Money, but My Copy Trades Yield Flat Returns?

• Latency & Cost Premium: Smart money often enters trades ahead of key points, securing lower buy prices and acting faster. When you try to copy them, the price has likely already risen, and liquidity and slippage costs are higher.

• Strategy Misalignment & Execution Differences: Smart money might not set take-profits or stop-losses for every trade, while you might sell early or set stricter stops out of caution, resulting in lower overall profits compared to smart money.

2. How to Balance Risk & Profit Expectations?

• Reduce Position Concentration: Don’t stake all your funds on one smart money address or strategy. Diversifying risks helps you maintain some “survival space” even if multiple strategies fail.

• Constantly Remind Yourself of Memecoins Traits: Remember, 99% of tokens will go to zero. Hitting a 100x GEM is a low-probability event. Treat those rare wins as bonuses, not as guaranteed outcomes.

3. How Important is Cost Control & Strategy Iteration?

• Highly Important: In the Memecoins, high trading costs (fees and slippage) can turn small profits into losses. Small-scale trial and error and flexible adjustments are crucial.

• Adapt Strategies to Market Conditions: Adjust your strategies based on market cycles, sentiment, and smart money performance. Backtest results don’t guarantee future success, so be ready to change tactics when strategies aren’t working.