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How to profit in pump groups

There is no guarantee of profit from pump and dump participation, but you can maximize your chances by following these steps.

Step 1: Selecting a pump to participate in

The first step to profiting from a pump group is to select the right pump. There are two basic ways to do this. The first is to pre-select groups that you want to participate in using this website's statistics as a guide. The second is to look at what pumps are coming up soon and check which are worth joining in.

To facilitate the second option, I recommend the following two Telegram channels:

Whichever option you chose, here is what to look for in a group:

Step 2: Prepare for the pump

Once you've decided on a pump group, you need to prepare for the pump. First, you must decide the maximum BTC you'll risk on the pump. Definitely, you should never put in more than you are willing to lose. You don't want to put yourself in a situation where a bad pump ruins you're ability to trade crypto-currency and you certainly don't want to risk causing yourself real financial pain. Additionally, you don't want to put in more than the group can handle. If you invest too much, you won't be able to get out fully, even if the pump goes well, as there won't be enough other members to buy you out. There is no hard rule, but I recommend no more than 10% of the group's normal volume.

Second, you need to make sure your exchange account is funded. If you need to transfer funds in from another exchange or wallet, make sure you initiate the transfer early enough so that the funds arrive well in advance of the pump date. When transferring from another exchange, it is usually faster and cheaper to convert BTC to another coin such as LTC or DOGE, transfer, and then convert it back to BTC.

Third, decide on your maximum entry price. You don't want to enter into a coin at too high of a price, or it will impossible to profit. But, how can you know what is too high of a price before you know the coin? Sure, you can't decide on a maximum entry point in BTC, but you can decide on a maximum percentage gain you'll tolerate. The first factor in this decision is your risk tolerance. If you buy at coin at +50%, you could lose 33% of your investment if it falls back to the starting price. If you buy at +100%, you could lose 50% of your money. And so on. Decide how much you are willing to lose and never buy above that percentage. The second factor, is the group's ability to raise a coin's price. Use the Pump Analysis summary and detail pages to estimate how high a group's next pump will go. The actual gain will depend partially on the coin chosen, but the group's past performance should give you a rough estimate. Decide how much profit justifies your risk and see what price you could afford to buy for and hit that profit, keeping in mind you probably won't get out at the maximum. For example, if I need +20% to justify my risk and the group seems to hit about 70% on average, I might decide on a maximum buy-in of +35% or so, even if I normally would tolerate a risk of +50%.

Deciding on a maximum risk and maximum buy-in price in advance, and sticking to those numbers when it means missing a pump, is crucial to profiting from pumps in the long run. You can't make money in this game without the discipline to skip pumps where you miss your "safe" entry point.

To be continued...