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How I Lost 150K in the Last Crypto Bull Run (And Why I Am Thankful For It)

It was almost three years ago. But even when I think about it today, I get a strange feeling of anger and shame. However, since we are (probably) at the beginning of a new crypto bull run, I noticed that many people are interested in that story.

So what happened? I went from zero to hero and back (below) zero during the last bull run. It was one of the craziest rides I’ve ever done. I want to share this story to help others avoid making the same mistakes as I did.

Let’s go through my story in the first step. Afterward, I will share the lessons I learned, and I am actually thankful for those initial lessons.

It All Started With The Perfect Entry

It all started when I bought in at what seemed like the perfect moment. It was late 2019 / beginning of 2020. However, this wasn’t the result of proper technical or fundamental analysis. It was actually just…luck. I started to get into the crypto industry; it was logical to buy cryptos.

The market was on an upward trajectory, and my investments quickly began to bear fruit. It didn’t take long, and I bought more.

In just a few months, my profits were soaring.

I felt invincible, like the master of the universe, with every trade turning to gold under my Midas touch. Logically, I started to use leverage. I mean, I was obviously much smarter than the market since everything worked exactly as “planned” (ok, I had no plan, but it felt like).

The Grip of Greed

But as my portfolio expanded, so did my ego.

As mentioned, I became convinced I was more intelligent than the market and could ride the bull run indefinitely.

This overconfidence was my first mistake.

I watched my profits climb higher and never considered selling. Why would I when I was on such a winning streak? No way, this was the time to double down. More leverage, more investments.

The Fall

Then, the market shifted. What began as a minor dip turned into a full-blown crash.

Still, I held on, believing the market would recover and reach new heights.

However, it was the first time I slowly recognized that I didn’t have an exit strategy. But this wasn’t the only problem. The high leverage started to bounce back. Profits vanished faster than I could realize.

Feelings turned from the Master of the Universe to a mixture of panic and agony.

I constantly watched the charts and, more importantly, my margin — which became thinner and thinner.

Finally, it was too late when I realized I needed to sell.

In absolute panic and an act of despair, I sold my holdings at a 5K loss, a far cry from the 150K profit I had on paper just weeks before.

Lessons Learned

I felt devastated. It took me a while before I sat down and started to analyze what had happened. However, I am not the guy who gives up quickly. Therefore, I put together everything that went wrong. Here’s a summary of it:

  1. Greed Blinds: Greed can cloud your judgment, turning an otherwise rational trader into a gambler. It’s an emotion that can grow uncontrollably if not kept in check.
  2. Exit Strategy is Crucial: Always have an exit strategy. It’s vital for managing emotions and securing profits. Without it, you’re flying blind, vulnerable to the market’s whims.
  3. Stick to Your Strategy: Deviating from your trading plan in the heat of the moment can lead to disaster. Your strategy is your roadmap; stick to it. NO EXCUSES!
  4. Don’t Fall in Love with Your Tokens: Emotional attachment to your investments can cloud judgment. Remember, the goal is to make a profit, not to marry your portfolio.
  5. Use Leverage Responsibly: Personally, I don’t use more than 2x leverage anymore for my strategic investments. And I even use 2x rarely and very responsibly.
  6. Take Profits: Don’t wait for the peak or lament the troughs. Taking profits systematically is vital to successful trading.

Why I Am Grateful For This Experience

Ok, I don’t want to lie. During the first months after my crash, I was everything but thankful. First and foremost, I was angry. Angry about the market and my stupidity.

However, retrospectively, this early disaster was probably the best that could have happened. Here’s why:

Accelerated Learning

First and foremost, this experience taught me crucial trading lessons very early in my journey. There’s a saying that experience is the best teacher, and this loss was a prime example.

It forced me to confront my weaknesses, reevaluate my approach, and learn from my mistakes at an accelerated pace. This rapid learning curve has significantly improved my trading skills and prepared me for future market fluctuations.

Emotional Resilience

The emotional rollercoaster of going from a high of feeling unbeatable to a low of a significant loss taught me the importance of emotional resilience in trading.

It’s easy to get swept up in the euphoria of gains or the despair of losses, but this experience underscored the need for emotional stability. I’ve learned to maintain a level head, regardless of market conditions, which has become one of my most valuable assets as a trader.

Strategic Refinement

Finally, this loss prompted me to refine my trading strategy, focusing on risk management and exit strategies. It highlighted the dangers of trading without a clear plan and the importance of safeguards.

This strategic overhaul has made me a more cautious trader and confident, knowing that I have a plan to protect my investments and take profits strategically.

What’s Next?

Whenever you are ready, there are 3 ways I can help you:

#1 Ready to trade like a pro? Check out our Strategy OS program giving you access to some of the most successful and robust trading strategies >>> Discover More Here

#2 Need to get a better structure for your trade? Discover our Trading OS containing trading journals, asset manager, and risk assessment templates. >>> It’s available for free here

#3 Never want to miss a trading signal and ready to automate your trading? Download our app and get trading signals for more than 200 crypto tokens. >>> Available on iOS and Android

Ben Walther
Ben Walther

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