The main reasons why Liang Xi lost his assets are as follows:

1. Wrong market judgment:

● Misjudgment of direction in the bull market: Bitcoin rose again in the second half of 2021, but Liang Xi misjudged the direction, which was completely opposite to his previous short-selling profit during the 519 crash in 2020. When the market trend changed, he did not adjust his strategy in time, resulting in serious losses and a significant reduction in the assets accumulated before.

● Continuous high-leverage trading strategy: Liang Xi is accustomed to using high leverage for trading, which is extremely risky when the market fluctuates greatly. Although high leverage can bring huge profits when the market is in line with expectations, once the market trend is contrary to expectations, the losses will be multiplied. For example, in some unstable periods, his high-leverage operations caused the losses to continue to increase.

2. Overconfidence and greed:

● Failure to stop in time after making a profit: During the 519 crash in 2020, Liang Xi made a huge fortune by shorting, and the asset accumulation was considerable at the highest point. However, he was so overwhelmed by his victory that he did not cash in his profits at the right time. Instead, he continued to trade frequently in the market, overconfidently believing that he could continue to make profits. As a result, he continued to lose money in subsequent transactions.

● Anxious to recover: After experiencing losses, Liang Xi did not calmly analyze and summarize his experience and lessons. Instead, he was eager to recover his losses, continuously increasing his investment and even borrowing money to trade. This eagerness to recover made his trading decisions even more irrational and fell into a vicious cycle. $BTC