Recently, I've noticed that many small-cap players are keen on trading meme coins. Here, I’ll share a practical trading approach.

**Pattern recognition is the first step.** Take coins like FHE, for example. Their daily charts often show long wicks followed by a quick pullback—keep this pattern firmly in mind.

**Long strategy:** If you monitor the market closely and spot the breakout signal early, you can enter with high leverage and a small position size, setting a stop loss at the breakout point. With so many meme coins surging now, catching just one with a good risk-reward ratio can yield impressive results.

**Short positioning is even more critical.** Start with a 2-5x low-leverage test position, then set staggered limit orders to scale in at higher levels: 1% position at 0.05, 1.5% at 0.1, 2% at 0.15. By using "ant positions" to lower your average entry price and moving the stop-loss up accordingly, you’ll rarely get liquidated. As long as there’s no extreme market condition, prices will most likely return to their starting point. While you might not capture huge profits, an 80% win rate combined with compounding can still be quite lucrative.

**Study history to find patterns.** Coins like MYX and AIA often have spike-and-retrace moves every few days. Review daily charts of meme coins when you have time, set small orders in advance, and you’ll usually see some gains.

**Late-night monitoring works wonders.** Many meme coins like to make surprise moves in the middle of the night, with unfamiliar names suddenly topping the gainers list. At this point, check the 15-minute K-line; if there’s a volume surge, you can chase with high leverage and a small position size—the stop-loss will keep potential losses minimal. If you run into something like PIPP’s explosive rally, you could take off. Don’t just watch the market—watch with a purpose!