By cryptoadmin Outstanding dealer Eugene Ng Ah Sio not too long ago shared an in depth buying and selling abstract, sharing the only largest loss on his account thus far: a $6.2 million loss on a $60 million lengthy place in Solana (SOL).
Regardless of having a robust observe document, Eugene outlined a collection of errors that led to this pricey misstep, whereas additionally noting necessary classes realized.
Eugene began by making the most of Bitcoin’s rise and made a revenue from a protracted place between $102,000 and $107,000. He then shifted these good points into lengthy positions within the Solana ecosystem, reminiscent of 220 SOL, 2.75 WIF, and 0.037 BONK, attaining a good risk-reward ratio. Initially assured on account of Solana’s sturdy efficiency on decrease time frames (LTF), Eugene later elevated his SOL place from $20 million to $30 million when the market began to say no.
Eugene admitted that his normal self-discipline in reducing losses had damaged down. When SOL fell to $215, he resisted exiting the market, considering $200 was a major help stage. As a substitute of decreasing his publicity, he elevated his place to $45 million, growing the danger in an already unstable market.
When SOL fell beneath the $200 help stage, Eugene continued to attend, fearing that closing his giant place might set off a worth cascade. Succumbing to “desperation,” he added leverage between $187 and $193, growing his place to $60 million and growing the potential draw back affect.
Eugene, whose unrealized losses have been $7-8 million, determined to shut 70% of his place at $193, dropping $6.2 million (roughly -10.2%).
Eugene defined that the transaction went awry on account of an accumulation of errors and a “sunk value mentality.”
*This isn’t funding recommendation.