My name is Joe. I have a huge debt of over $100,000 that will take me several years to pay back at this rate. I am sharing my story with you so you don't have to make the same mistakes I did.
I've been in crypto since 2018. I didn't make much money, but I learned quite a lot. The most important lesson I learned was trading the market cycle.
I knew there would be a bull run through 2020 and 2021. The Fed printing trillions of dollars was the last piece in my big puzzle. But I had one problem: I had little money and could only care for my family with the little I earned as a salary.
The Plot To Gain Financial Freedom
If only I could get someone to loan me some money for a year, I'll be able to pay it back with whatever interest they charge me. Banks can't lend me money, because I have no collateral. My only option was to get high-interest loans from loan sharks.
I thought long and hard about it for a week. Getting a high interest loan from loan sharks is like swimming with the devil. "I'll make it and pay it back", I said to myself. I took out a loan of $100,000 to pay back in a year.
Six months later, $100,000 was now over $620,000. It was all happening just as I thought. My prophecy was fulfilled right before my very eyes and in my lifetime. I can finally live the life I want and properly care for my family.
I Wanted More!
Everything was going up each day. 10% here, 15% there. Meme coins were popping up left and right, doing multiple numbers. "If I play my cards well, I can make life-changing money", I convinced myself.
I invested in several meme coins. Surely, some of them will go well. To my surprise, none turned out well. All the ones I invested in, rugged. The ones I didn't invest in pumped. Well, I thought I was just being unfortunate.
By this time, I had $270,000 left. "If I could just get this money to $1,000,000, I'll call it quits till the next circle". This was my thought. I knew leverage was risky. But it was a bull run. Surely, I can't go wrong by longing the market.
Using basic support and resistance, I longed each support. It was as if someone was after me. Each time I longed a support, price dropped. When I close the trade, the price goes back up. "What is the meaning of this?".
The End Of The Road
I saw a video on YouTube that explained how whales hunts stops. The person recommended not using stops, because stop loss is only used in a bear market.
I listened, and opened 10x BTC long on cross margin. They won't hunt my stops anymore.
I woke up to see notifications that my account had been liquidated. How on earth could that happen? BTC needed to drop 19% for me to be liquidated. That can't happen in a bull run, no?
Apparently, Bitcoin dropped by 25% that day, on December 4, 2021. I couldn't believe my eyes. "What on earth just happened?"
I was back to square one. No, I was worse than where I was. I had my life in my hands, and I threw it all away. Greed is a disease.
Learn From My Mistakes
Looking back now, I can see where I went wrong. But I can't turn back the hands of time. I have a wife and a daughter in high school. My family sold the family farm to pay for my debt.
It wasn't enough, so they took out a loan that I am having to pay back. At this rate, it will take me several years to pay back that loan.
Here are some of the lessons I learned. Feel free to share what you learned too.
Never take a loan to trade. If you're fortunate to do so, pay back as soon as you have the money
Greed can ruin your life
Always know when to stop
Never try to revenge-trade
I can imagine what you think of me right now. Yeah, I deserve that. Just don't become another version of me.
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