I recently came across a very interesting trading case. A trader only dares to short when the price experiences a significant pullback, and he often shorts at relatively high points. This gave me some thoughts.
Many people see others' floating profit screenshots and want to follow suit, but the problem is that by the time you see it, they have already made several times their profit. If you chase and enter a short position now, the risk and reward are completely mismatched. That’s why it’s essential to have your own judgment when trading contracts—blindly following the crowd usually leads to losing money 99% of the time.
Although this trader controls his position size very small, each trade is well thought out and not randomly opened. Sharing this can provide reference for those with market sensitivity, which is valuable in itself. Looking at specific data, he experienced a maximum floating loss of 700% on TAKE tokens, over 100% floating loss on ETH, and up to 800% on ZEC. If you had shorted at his deepest floating loss point, you could have benefited from this rebound.
The key is that small position size + correct entry timing = high-efficiency gains. This is much more meaningful than those daily bragging about how great they are.
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DaoResearcher
· 10h ago
According to the risk management chapter of the white paper, this trader's position management indeed reflects the optimal allocation principles of token economics—small positions are essentially an incentive-compatible design, preventing single-loss risks from non-linearly damaging overall returns. It is worth noting that an 800% unrealized loss rebound indicates a clear inefficiency in the market pricing mechanism; for a detailed analysis, refer to Vitalik's views on market microstructure. The question is, can we assume that this hypothesis holds when the unrealized losses are at their deepest? This probably overestimates retail investors' psychological resilience.
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OnchainArchaeologist
· 10h ago
An 800% unrealized loss can still turn around; this mental resilience is incredible... But to be honest, most people don't have this level of patience. They start panicking and selling when their account shrinks by half.
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SchrodingerPrivateKey
· 10h ago
This is true trading wisdom, not something that can be compared to the crowd that follows the trend just by looking at floating profit screenshots.
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BitcoinDaddy
· 10h ago
After watching for a long time, I finally understand that this guy makes a living by timing the market. He repeatedly cuts small positions to survive until now, he's not some kind of genius.
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OvertimeSquid
· 11h ago
That's right, jumping on the bandwagon is really a big mistake... Just by looking at the screenshot, I want to copy their actions, but in the end, I can only copy their losing outcome. The key is to understand stop-loss and position management, otherwise even the best opportunities are useless.
I recently came across a very interesting trading case. A trader only dares to short when the price experiences a significant pullback, and he often shorts at relatively high points. This gave me some thoughts.
Many people see others' floating profit screenshots and want to follow suit, but the problem is that by the time you see it, they have already made several times their profit. If you chase and enter a short position now, the risk and reward are completely mismatched. That’s why it’s essential to have your own judgment when trading contracts—blindly following the crowd usually leads to losing money 99% of the time.
Although this trader controls his position size very small, each trade is well thought out and not randomly opened. Sharing this can provide reference for those with market sensitivity, which is valuable in itself. Looking at specific data, he experienced a maximum floating loss of 700% on TAKE tokens, over 100% floating loss on ETH, and up to 800% on ZEC. If you had shorted at his deepest floating loss point, you could have benefited from this rebound.
The key is that small position size + correct entry timing = high-efficiency gains. This is much more meaningful than those daily bragging about how great they are.