08-17-2022, 06:15 AM
Lost 30% of my Net Worth After Last Month CPI Release
<!-- SC_OFF --><div class="md"><p>Hey guys. So it's as the title says. I'm not looking for sympathy but hoping so other can learn from my mistakes. </p> <p>A little background that I'm trying to finish university and live on my own. I know alot of economics, read up alot and was sure the inflation reading would come out hot. So I made a max leveraged short ETH position expecting things to work great. And it did. Initially.</p> <p>Within minutes of the 8:30ET release prices absolutely tanked. I considered taking profits but said what the heck the numbers are so bad I must be sure to make a lil extra or at least I won't lose much. What I did NOT expect was prices to skyrocket, as BTC went from barely above 19,000 ripping straight up to 24,000 over the following days. By then I'd lost about 60-70% as the exchange autosold. Then being greedy I tried to short IMX that had me lost another 15ish% and then I got in late to the VGX "recovery/buy-the-dip" bull run after their mess and lost pretty much the rest.</p> <p>I've learned alot.</p> <ol> <li><p>Traders have a saying "Markets can remain irrational longer than you can remain solvent". The (initial) trade made sense but the market didn't care.</p></li> <li><p>It sounds obvious but when there's a chance to make a killing there's also a risk to lose it all. It may probably be better to make less risky trades and accumulate profit slowly.</p></li> <li><p>If shorting, always have enough funds to buy back. Never be stuck where you don't have enough to exit a position.</p></li> <li><p>There are cheap coins like Uniswap and IMX compared to BTC that give greater proportional gains in a bull market. These can be a blessing and a curse. If you get in just before they drop you lose a lot and vice versa.</p></li> </ol> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/OneThatNoseOne"> /u/OneThatNoseOne </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/wpwal6/lost_30_of_my_net_worth_after_last_month_cpi/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/wpwal6/lost_30_of_my_net_worth_after_last_month_cpi/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Hey guys. So it's as the title says. I'm not looking for sympathy but hoping so other can learn from my mistakes. </p> <p>A little background that I'm trying to finish university and live on my own. I know alot of economics, read up alot and was sure the inflation reading would come out hot. So I made a max leveraged short ETH position expecting things to work great. And it did. Initially.</p> <p>Within minutes of the 8:30ET release prices absolutely tanked. I considered taking profits but said what the heck the numbers are so bad I must be sure to make a lil extra or at least I won't lose much. What I did NOT expect was prices to skyrocket, as BTC went from barely above 19,000 ripping straight up to 24,000 over the following days. By then I'd lost about 60-70% as the exchange autosold. Then being greedy I tried to short IMX that had me lost another 15ish% and then I got in late to the VGX "recovery/buy-the-dip" bull run after their mess and lost pretty much the rest.</p> <p>I've learned alot.</p> <ol> <li><p>Traders have a saying "Markets can remain irrational longer than you can remain solvent". The (initial) trade made sense but the market didn't care.</p></li> <li><p>It sounds obvious but when there's a chance to make a killing there's also a risk to lose it all. It may probably be better to make less risky trades and accumulate profit slowly.</p></li> <li><p>If shorting, always have enough funds to buy back. Never be stuck where you don't have enough to exit a position.</p></li> <li><p>There are cheap coins like Uniswap and IMX compared to BTC that give greater proportional gains in a bull market. These can be a blessing and a curse. If you get in just before they drop you lose a lot and vice versa.</p></li> </ol> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/OneThatNoseOne"> /u/OneThatNoseOne </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/wpwal6/lost_30_of_my_net_worth_after_last_month_cpi/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/wpwal6/lost_30_of_my_net_worth_after_last_month_cpi/">[comments]</a></span>