Trader EugeneLong $60 million SOL: What did I learn after experiencing the biggest loss in a single transaction?

On the occasion of Christmas, well-known trader Eugene Ng Ah Sio shared a summary of his Long SOL trading review on Twitter, and detailed his get on board position, his mistakes in trading, and how he made the right decision to help him stop loss in time. Psychological Thresholds in Cryptocurrency Trading: How Does Fear and Greed Affect Markets? (Background supplement: Bull Market Nuggets: 6 Trading Rules to Improve Trading Success Rate) Cryptocurrency trader Eugene Ng Ah Sio, who has more than 110,000 followers on X, released a review summary of his recent Long SOL on social platform X yesterday (24), which details his get on board point, the mistakes he made, and finally made the right decision in time The psychological process of loss, this article now translates this review summary as follows, so that investors can refer to it. Trade Post Mortem: SOL Long (17 – 21 Dec) This is going to be a slightly different type of post, breaking down the setup I saw, mistakes I made and what I did right to mitigate the PnL damage. Setup: After scalping BTC perfectly from 102k → 107k, I decided to parlay that long… pic.twitter.com/eR17NJ7Rl1 — Eugene Ng Ah Sio (@0xENAS) December 24, 2024 Trading Review: SOL Long Order (December 17-21) This will be a slightly different analysis, and I'll explain in detail where I got on board, the mistakes I made, and how I made the right decisions to reduce my losses. get on board After perfectly eating BTC's short term gains from 102k to 107k, I decided to extend the long order to SOL and the Solana ecosystem. The get on board point at the time gave me a medium risk-reward ratio (r/r), specifically: Long $220 SOL, $2.75 WIF, and $0.037 BONK. This is the confidence I have built based on the strong performance of SOL in the short term and the success of many previous transactions. When BTC started to reverse and fall around 108k, I didn't like the underperforming meme coinlong order, so I resorted to the stop loss strategy and accepted the loss. (This is the right process!) However, instead of closing the SOL long order, I chose to increase the $20 million Position to $30 million, which led to error 1. Mistake 1: Not stopping loss in time One of my strengths is that I am usually able to smooth out positions that have lost momentum in time to avoid further deterioration of the situation. This time, however, I chose not to stop loss at $215, even though I believe the market's price action after the FOMC meeting may have a downside fluctuation risk. But in the end, bias trumps logic — I was psychologically priced at $200 for the key support, and because I was so close to that support level, I didn't want to chop my hands on trying to capture 5% of Fluctuation. When SOL reached $200 support, I increased my position again, from $30 million to $45 million, and thought the risk-reward ratio was best in the support range of long-term frames. I don't think it's wrong, but it does make an already dangerous trade even worse. Mistake 2: Failure point is not respected When the SOL falls below $200, the most sensible option is that it should be Close Position according to the plan. However, I chose to continue holding the Position because by this time my Position had become very large, and if I chose to close it, this could cause the price to continue to fall to $190 and cause the market to crash. At that time, I also fantasized about a situation where Rebound could occur after a brief drop below support, which was a very dangerous psychological situation. Not only that, when the price fell below $200, I once again added leverage between $187 and $193 and further expanded Position to $60 million (total leverage is 1.2x). This is obviously the wrong decision, but as you can see, mistakes have accumulated. Fortunately, the worst didn't happen, and I didn't suffer a huge loss. I did the right thing After reflection, I finally decided to stop loss when the floating loss was about $7 million to $8 million, and I reduced my position by 70% at $193, which gave me the cash to prepare to catch the bottom in the final bottom area and successfully entered the market near the bottom to buy ETH, ENA, PEPE and WIF. Deal Closed In the end, my floating loss was $6.2 million, with a loss ratio of 10.2%. Since then, I have made 13 more trades with a 100% success rate, which basically makes up for the previous losses. I think it's a very good example of how a deal can be wrong from the start and get worse and worse later. Luckily, I managed to get out, which allowed me to stay calm and precise when the market bottomed out. But this is my biggest single position loss on this account, and I'll keep that in mind for a long time. Merry Christmas, guys. Related reports are worth tracking" The most influential encryption master Twitter account Investment must see》The "counter-intuitive law" in the 3 cryptocurrency markets An average of 5,000 new coins per day: in the saturated market, how to find the next potential copycat coin? Trader Eugene Long $60 million SOL: What did I learn after experiencing the single biggest loss? This article was first published in BlockTempo "Dynamic Trend - The Most Influential Block Chain News Media".