If what you mean by shady character is a coin that is not clear like a meme coin that is trending, then what you should do is get out of trading in coins like that, not get out of trading.
New coins whose development is not clear will make your trading focus only on luck, if you are lucky you can make big profits, if not you will suffer big losses which will make you frustrated, but if you are an experienced trader then it is difficult to be interested in coins like that because experience has taught you many things because what is happening now has also happened a long time ago, where many new coins have emerged which more often give big losses to real traders unless you are involved in a group that is used to dumping and pumping, which make you only trades relies on the movement of the group.
I do agree that people should try to avoid anything that looks even remotely shady. We have tens of thousands of coins and tokens in this market, there is no reason to risk anything, if nothing else seems ok, just put 100% of your money into bitcoin until you find something you like. After thousands of tokens and coins, you will find one that makes you feel like it is not even a single bit shady, and you would love to invest into it, there will be zero doubt about it and you will be happy.
You can still be wrong about it, which is fine, but I think that means a lot more than what people think. This is why I think it should be something that will make it better, and we need to just adjust to it, so do not rush into any investments.
The main thing that do comes up into their mind is that they are trying out to catch up everything on which this is something that would really be the most common approach on where people would be that trying to cope up or trying to take action with is that despite of being risky they would really be diving in and would really be trying out to make those kind of investment even if it means on touching up random projects just because they dont really like on missing up something and in result then most of those projects or coins are really that kissing on the floor and this is why on the moment that they would really be experiencing such
losing condition or moment then they would really be neither having those realizations or really be trying out to cope up with those loses and make themselves that impulsive.
Risk management would really be that something be relevant on the moment that you would really be dealing up with this market because on the moment or time that you wont really be that trying out to
have that kind of careful approach on things then you would really be that prone into tons of mistakes on which it would really be that resulting in too much negative impact.
So it would really be that situational basing up on someones approach.