Lesson Learned: Over-leveraging on a 'sure thing'
Thought I'd share a quick lesson from my early days that cost me dearly. Back in '17, during the big crypto run, I had a decent position in $ETH. Saw a dip, felt like a genius for spotting it, and decided to double down, using leverage for the first time. The narrative was strong, everyone was talking about it, felt like a 'sure thing' to just bounce back. It didn't. The dip continued, and I got margin called, losing not just the leveraged amount, but a significant chunk of my initial capital. My mistake wasn't just using leverage, but doing so on a whim, without understanding the mechanics or having a proper risk management plan in place. Never again will I let FOMO and a strong narrative override my analytical process, especially with leverage. Small sizing and defined risk always.
It's a tough lesson many learn the hard way. The 'sure thing' mentality combined with leverage can be a brutal teacher. Did you find it harder to manage emotions once leverage was involved?