Topic: [2018-01-24] Bitcoin Trader Made Millions Trading on Margin, Then Lost It All (Read 156 times)

So what? There are so many others losing much more on a daily basis, but they don't rush to social media to get their retarded gambling habit known to the outside world. It's basically the same as with how people suddenly pop up and claim to have become a millionaire with just an initial investment of $1000. Good for you that you achieved that, but what's the point of having it be publicly known? It's obviously a scream for attention. And honestly speaking, I don't believe that he just lost $3000 as initial investment. If it was, then he wouldn't react like that - there is definitely more that we don't know. I know there are people who've lost quite a bit with gambling, but where they act like they just lost a small amount to make themselves not look like an utter idiot.

I can't really feel bad for him, because what he did makes no sense. He started well by investing those $3000. His initial investment wasn't huge, so if he could afford to lose those $3000 then I would say he did well. I don't really like margin trading, but like I said, if he could afford to lose them, then it was ok. He then hit a mega jackpot, and becomes a millionaire. This is where he needed to evaluate his bankroll again. He was all profit right now, so how hard would it be to just put in some stop losses. This is just basic trading skills, and there is no excuse to what he did. Even after losing half of his bankroll, he just goes all in again? I mean could he afford to lose another 150 BTC? And why keep doing margin trading? He was already a millionaire and he wanted more?

Now he says he doesn't want to hear the bitcoin word again. Like if it was bitcoin's fault he got insanely greedy.


I actually think he lost it all because he was margin trading. He's account got liquidated after the dip. Margin trade is incredibly risky with crypto since you can loose all you bankroll in a dip. You don't get to keep your bitcoins, because the exchange will liquidate them if necessary to pay for the bad trade.

I do not think he will lost it all since once he sell the remaining Bitcoins, he will gain the equivalent  amount in USD if he sell them and converted to fiat currency.  So I do think this news is a bit exaggerated.

Anyway, this is just a plain example of  letting greed take over our minds and feeling too confident that there will nothing go wrong.  We should be observant of the market and never be too confident when we are gaining grounds.  We should always take precautions and read news and updates.   Aside from that, we must always set a reserved so that, if ever things go wrong we always have a secondary support for the next trades.

That is what's bad about Bitcoin trading as the volatility is too big few good trades would make you think that you are a trading genius but that is when you will get careless as a few mistakes will lead you to cutting losses. Mainly people who are trading by the margins usually gets the correct trade but what if that margin broke? Then you are left without any other alternative plans. That is why technical analysis is still your weapon for confirming your predictions or it can really serve as a basis for your predictions.

He could be a millionaire already but then greediness strikes and he lost it all. Margin trading is really a bad idea when you can't control your emotion. I did read some who commented in that post with the same situation as him and as what he said, you are just too hype up that you can't just control yourself when you are in that situation. Clearly it is gambling because if he is just rational in his decision then at least he should just cash out at least half of what he earned so that he is confident he still has some even if he lost it all later on. This is a reminder for us all not to be greedy and though it is hard to be not emotional when trading, at least we should have money and risk management because we never know what the future will be.

Well the good news is he lost only $3000 in poker winnings and not $500,000 in life savings plus loans and maxed out credit cards like how some get rich quick people do it in the cryptospace.

He is a gambler, and winning and losing is nothing new to him.

Indeed, he should cash out at the time that he has BTC300. ohh he has nothing since he did margin trading, it is risky gambling. But it is his fault as he didn't take the profits back at the time. When someone become greedy over something, most turn into the opposite way. Trading is a gambling which you against others, compete to buy and sell at the right time, but with margin trading, the risk just increase and the funds will be lost faster than common way of trading.

It may sound harsh, but it's his own fault. Margin trading is similar to gambling, so before you start with this, you have to accept the negative side of margin trading. In other words, you are fully responsible for your own actions, and for that reason have to swallow it like a champ, even though you probably feel like shit after losing that much. And he never want to hear the word BTC again? Lol, what a pathetic loser. It's his own fault to get involved in extemely risky practices, and not Bitcoin's fault. Blaming Bitcoin (or whatever other asset) is classic behavior of someone not willing to accept and acknowledge his own stupidity.... Bye bye!

A bitcoin trader allegedly lost nearly 200 bitcoins during the recent cryptocurrency market correction, which forced the bitcoin price as low as $9,231 after peaking at $19,891 last month.

The tragic story, which was posted on the Bitcoin Markets subreddit, is a stark reminder of how fleeting crypto wealth can be — and how bitcoin traders and investors can often mistake luck for supernatural skill.

The trader, whose account has now been deleted, said that he or she took $3,000 in poker winnings and turned it into nearly 200 BTC by betting successfully on last year’s bull market.

By trading on margin and correctly predicting that the bitcoin price would increase, the user was able to multiply the value of his or her position. Had the trader closed out the position at its most profitable, he or she would have walked away with 300 bitcoins, worth nearly $5 million at the time.

“I thought I was a trading genius, a god, whatever,” the author said, at which time the story takes a tragic turn.

The trader increased his or her position size and leverage in mid-December, as the bitcoin price hit $16,000 following its first dip to $11,000.

This proved to be the first of several critical mistakes, as the trader’s entire 50 BTC position was liquidated when the market dropped down to $12,000. He or she was still holding 150 BTC, which would have been a significant — potentially life-altering — profit reaped from an initial investment of just $3,000

A few bad trades later, however, and those holdings evaporated as well, leaving him or her with nothing to show for a years’ worth of trading.

“At this time I am still in shock,” the trader wrote,” the last few months I’ve neglected relationships and school, and I’ve been daydreaming about living the high life rich as f–k with my millions.”

Many investors were captivated by the market’s outsized gains in 2017, leading them to make similarly-unfortunate decisions. A recent survey, for instance, found that approximately 20 percent of investors who bought bitcoin using a credit card had not paid off the balance.

Having weathered a myriad of bitcoin price swings, long-time industry observers like ShapeShift CEO Erik Voorhees and Union Square Ventures co-founder Fred Wilson have said that it is wise to take profits when a position becomes extremely profitable and use those funds to pay off consumer debt or perhaps diversify into other assets.

Unfortunately, this trader did not heed that advice.

“I never want to hear the word BTC again because I want to forget,” the post concluded.

https://www.ccn.com/bitcoin-trader-made-millions-trading-on-margin-and-then-lost-it-all/