Trading cryptocurrencies is often associated with great risks. These risks are due to market volatility where prices rise or fall within a very short period influenced by various reasons. When market volatility is high, traders can make significant gains or losses.
According to a recent crypto confession post on Coinfession (an anonymous crypto confession X page), one crypto trader has been through a roller coaster ride moment. He laments catching a runner and staying up with it the whole night. But, what transpired after was a moment of lamentation.
What Really Happened?
The crypto trader used the last 5 SOL coins in his trading wallet to purchase a pump fun memecoin. The move was a euphoric one as he tried to recover funds lost in the previous three weeks. Upon realizing a price surge, the trader used more Solana coins from his regular wallet to buy more of the pump fun memecoin. He states, “I doubled down with my other wallet when I realized it was legit.”
As the memecoin rose further, the trader remained optimistic. He opted not to take profits despite having an opportunity to cashout out up to 100 SOL. However, his decision to HODL turned sour when the memecoin fell back down to zero.
In his confession, he laments, “I rode it to a combined 100 SOL of unrealized profit when it turned around. He further added, “I never took profits. I really believed it was the next 100 Million coin and would eventually get listed on Binance.”
The Crypto Community Reacts to The Trader’s Confession
Reacting to the trader’s crypto confession, the crypto community has criticized his decision to not take profits when he had a chance. One crypto enthusiast by the name @TommyBeFamous, for instance, posted his critics and advice on the post’s comment section.
https://twitter.com/TommyBeFamous/status/1864060088215818323
According to Tommy, trading is not all about catching a big runner and remaining optimistic that it will grow to unrealistic prices. Rather, crypto trading is about discipline, risk management, and of course taking profits when you can.
Lessons Learnt and How To Avoid Falling in A Similar Frying Pan
The crypto trader missed a chance to take 100 SOL in profits after spending the whole night watching his pump fun memecoin soar high. He even had to lie to his wife that he had made some profits to cover up his losses. “I told my wife I made 10K because I was so ashamed that I stayed up all night and lost my whole portfolio” he confessed.
Based on his story, it is clear that he was blinded by his unrealistic optimism which resulted in losses. While every crypto trader may be tempted to hodl, in some scenarios it’s best to take early profits. It is also crucial for every trader to set clear profit-taking or exit positions.
Tommy advises, “next time, set clear profit targets and stick to them. Take profits in chunks, move them to stables, and never let emotions ride your portfolio to the ground.” The crypto sector is full of success stories, but traders should not be blinded by that. By taking lessons from crypto confession, traders can avoid falling victim to unrealistic expectations, especially when investing in memecoins.
