Liang Xi's Huge Loss from Margin Calls: Every Margin Call is a Step Towards the Abyss
Many people think that averaging down is a belief, an opportunity, and a courage to fight against the market. But Liang Xi has paid a bloody price to tell everyone: averaging down can be a slow poison leading to hell.
Starting short at 102,000, Bitcoin soared above 110,000. He kept adding positions and averaging down, confident that the market would 'inevitably correct.' But the market didn't provide an opportunity for explanations, only the punishment of price. He went from a real position of 600 BTC a month ago to a total of 2000 BTC in combined positions, with a market value reaching 200 million dollars, until he was ultimately wiped out by a series of stop-losses, losing over 30 million dollars.
Every averaging down is actually a renewed bet on one's own judgment. But if the direction is wrong, no amount of perseverance will do anything but drag you deeper. His story is not an exception, but a prelude to the outcome for 90% of leveraged users in the crypto world.
True experts do not stubbornly average down, but acknowledge mistakes and stop-loss to exit the market. Unfortunately, the influencers cannot 'admit mistakes,' they can only 'hold on to the end.' Liang Xi did it; he was wiped out.
