#FOMO A Recipe to Failure: A Trader Losses 90% of Capital on $HYENA

 #FOMO: A Recipe to Failure

A Trader Losses 90% of Capital on $HYENA

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The vast crypt market gives traders and investors a lot of opportunity to skyrocket profits in a short period of time. Bitcoin gave this great confidence as it propel fast to the moon. However, always remember that for every opportunity it gives there’s also an equal amount of risk involved on your investment.

A trader lost 90% of his capital after buying $HYENA while to the top on a parabolic move. The trader spent $89.6K 20hrs ago and now his investment is only worth $8,794. 

What he has done right First, lets examine the right things he has done. He made multiple buys while the price was going up. That gives us an opportunity to minimize our exposure while we’re trying to ride the wave as the asset’s valuation goes up.

What went wrong?

Maybe you are asking: What went wrong?

He started buying when the price had propelled high and followed by multiple buy setups moving forward. Lets take a closer look at his strategy.

On the other hand, the lesson we’ve learned from this setup.

As you can see on the chart $HYENA made a massive move from the bottom. The approximate first 30 mins of

trading it had its flat base with little trading volume then it started moving with exponential gains when the price

and the trading volume increased more than 3 folds.

To give us further context, reference the B symbols as the Buys the trader placed on the chart. 

The trader placed the orders on the top while $HYENA is moving unpredictably.

How can we improve this strategy?

If we’re going to do this trade, these are my 2 cents on how you can approach this trade setup.

1. These are the Buy setups that we’ll do for this trade.We’ll do it after the confirmation after the rally paused on

marks #1 & #2 while some tradersare still holding as shown below.

We’ll be starting our position when the price inched higher on where I marked #1. I may think twice at mark #2 because that will be a little too risky but it can be another Buy setup if you missed my mark #1 on the chart.

2. We’ll setup an automatic profit taking on every price increase and an automatic stop loss price. 

This way we can avoid being emotional and making mistakes on our trade.

Conclusion:

The crypto market can give massive profits opportunity for everyone but it also gives an equal amount of risk

on our trades. It is important to make a proper trade setup and always consider the risks on every trade.