CoinVoice has recently learned that top trader Eugene Ng Ah Sio shared a summary of recent trades. After perfectly going long on BTC from $102,000 to $107,000, I decided to transfer this profit to long positions in SOL and the SOL ecosystem. The entry point at that time offered a moderate risk-reward ratio (r/r), specifically: going long on SOL at $220, WIF at $2.75, and BONK at $0.037. This was based on SOL's strong performance on lower time frames (LTF) and the confidence gained from previous successful trades. When the BTC market began to turn at $108k, I was not pleased with the trading performance of some meme coins, so I decisively closed out the underperforming assets, accepting a manageable loss (which was the right operation). However, I did not close the SOL position and instead chose to increase my position from $20 million to $30 million. This led to the formation of the first mistake.
Error 1: Failed to cut losses in time:
Typically, one of my strengths is the ability to exit positions in a timely manner when they start to lose strength, to avoid larger losses. However, this time, I chose not to cut losses when SOL fell to $215, even though I believed the market would experience downward volatility around the FOMC meeting. My bias overwhelmed my logic, and my psychological excuse was that $200 was a key support level for SOL, and it was very close; I didn't want to be 'liquidated' by the market for trying to catch a 5% fluctuation. When SOL dropped to the $200 support level, I further increased my position, raising it from $30 million to $45 million, reasoning that the risk-reward ratio at the higher time frame (HTF) support was the best. I don't consider this a mistake, but it certainly made an already complex situation more dangerous.
Error 2: Ignored stop-loss points:
When SOL broke below $200, the clear action should have been to close the position as planned. However, I chose to hold on because the position size had become so large that closing it at that moment could trigger a waterfall decline in SOL's price to $190 and ruin the entire chart. At this point, I began to harbor 'hopium,' thinking, 'perhaps there will be a lower wick that breaks support, and then it will regain it.' This mindset was absolutely a red warning signal, and I should have been particularly cautious. Moreover, after the price dropped below $200, I leveraged up in the $187 to $193 range, expanding my position size to nearly $60 million (with a total account leverage of 1.2x). This was clearly a misstep, but as you can see, the mistakes began to compound. Fortunately, there was no complete 'black swan' event, and I did not incur greater penalties as a result.
Correct actions:
When my floating loss reached $7-8 million, I decided, 'enough,' and decisively cut my losses. I closed 70% of my position at $193, which freed up cash to re-establish positions at the final bottom, including ETH, ENA, PEPE, and WIF, nearly catching the lowest point. Ultimately, the actual profit and loss (rPNL) for this trade was a loss of $6.2 million, approximately -10.2%. Since then, I have executed 13 trades, all profitable, basically making up for this loss. I think this is a good example of how a trade can go wrong from the start, and then the mistakes keep compounding, potentially becoming very bad, especially when the 'sunk cost fallacy' takes over. Fortunately, I was able to break free from that mindset, which allowed me to trade calmly and accurately when the market bottomed out. This was my largest single position loss on this account, and I will remember this lesson for a long time.
Merry Christmas, friends. [Original link]
