Liangxi's liquidation, I'm not surprised: you shouldn't use emotions to fight against trends
"I lost ten million dollars, I'm going to jump off a building." Liangxi posted a sensational article in the crypto world, claiming he shorted BTC, averaging down from 100,000 all the way to 107,500, holding 2,000 bitcoins in short positions, with two hundred million dollars' worth of positions consecutively blowing up.
His pain is real, but is this outcome really surprising?
Not surprising. A KOL who shorted at the peak of a bull market, leveraged up, went three days without sleep, and used emotions to direct trading was destined to end up here. What is truly regrettable is that while he is self-destructing, he is also bringing countless followers down with him.
Liangxi is not without skill; he has made impressive trades, but he has never escaped the "gambler's mentality," treating positions as faith, viewing pullbacks as salvation, and seeing cooperative accounts as ammunition depots. He is not trading; he is using all his resources to fight against an upward trend line.
The market will not stop rising just because you are in pain; it won't even glance back at you. The more agitated you are, the more likely you are to be the first to be harvested.
Liangxi's liquidation is a warning to all emotional traders: the market is not an outlet for emotions, but a field of rules. When you place orders based on emotions, it will settle based on logic.
We do not ridicule Liangxi, but we must be clear-headed. Anyone who tries to use human nature to fight against market laws will self-combust during a bull market.
