Memecoin Risk Management

Memecoin trading is essentially high-stakes gambling if you don't have a risk management framework. On Solana, where 99% of tokens go to zero within 48 hours, preventing losses is more important than chasing gains.

The 80/20 Rule of Memecoins

Treat 80% of your portfolio as "safe" (SOL, USDC, BTC) and only use 20% (or less) for "Degenerate" trades (memecoins).

Position Sizing

Never "All-In" on a single token.

• Test Size: 0.1 - 0.5 SOL for unverified launches.
• Conviction Size: 1 - 2 SOL for projects with locked liquidity and high social engagement.
• Max Size: Never exceed 5% of your trading capital in one position.

The "Initial Out" Strategy

The most successful traders use the Moonbag approach:

1. Buy Token.
2. Wait for 2x (100% gain).
3. Sell 50% of the position.
4. Result: You now have your initial investment back in your wallet, and your remaining tokens (the moonbag) are "free" profit.

Rug Pull Checklabels

Before buying any token on Axiom, check:

• Liquidity Burned: Is the LP supply 0% or locked?
• Top Holders: Does one wallet hold more than 5% of the supply? (Excluding CEX/DEX wallets).
• Mint Authority: Is the minting function disabled?