Introduction

Today, I’m pulling back the curtain on the worst trade I ever took in my life a moment that still stings when I reflect on it but taught me a valuable lesson to become a better trader. If you trade yourself, chances are high you’ve made the same mistakes I did.

The Setup

It was late May 2022, and I was a full-time college student with summer vacation on the horizon. Trading was my full-time hustle and main income source since I had no student job. The markets had been brutal lately, and I was in a rough patch, racking up more losses than wins. With exams looming and summer plans on the line, I was desperate for a big hit to turn things around. While heading to school on the train, I saw a random altcoin trending on Binance Futures with a lot of momentum behind it. The hype was real, and I let FOMO and greed cloud my judgment.

I went long with 20X leverage on 100% of my $3,200 account. No proper plan or risk management just blind hope that this trade would save my summer. Spoiler: it didn’t.

The Trade

When I opened the trade, it looked promising. The price ticked up, my account was in the green, and I already saw the vision: “This is it.” The trade hit a peak of +40% in profit, but then the price reversed hard, and my unrealized losses started piling up. Stress hit me like never before. Instead of sticking to my stop-loss (you know, the one I should’ve set), I let it run, convincing myself I’d sell at breakeven.

The price never recovered. It just kept tanking, and I watched my account bleed out. By the time liquidation hit, my entire $3,200 balance was gone. Poof. I was angry, embarrassed, and kicking myself for letting it happen. Summer was supposed to be my time to shine, live on my own schedule, trade, party, and live life to the fullest but now I was broke, with exams to focus on and no trading capital left.

The Fallout

Losing my entire account was a low point. At first, I couldn’t believe it had actually happened, and I felt defeated. Trading wasn’t just a side gig; I needed it to pay my bills. That night, I couldn’t sleep, wondering how I could fix the situation I was in.

The only option I saw was using my long-term crypto bag to refund my account. I had no other choice I wasn’t going back to working retail all summer after going full-time trading the previous year. That embarrassment would’ve been too much.

I took a break from trading to clear my head, focus on school, and regroup. When I came back after exams, I swore I’d never let greed or desperation cloud my judgment again.

The Lesson

That trade taught me one thing above all: never deviate from your risk management plan. No matter what, your plan is your lifeline. It’s what keeps you in the game and prevents you from losing it all.

How You Can Avoid My Mistake

I don’t want anyone to go through the same pain I did. Here are three practical steps to keep your trading account safe and stay in the game:

1. Always set a stop-loss (and stick to it)
2. Keep leverage low (or avoid it Altogether)
3. Trade with a plan, not emotions

These are key lessons from my Trading Course check it out if you haven’t already!

Moving Forward

That $3,200 loss was a brutal lesson, but it made me the trader I am today. It forced me to respect risk management like never before because if I lost my newly funded account, I’d have nothing left. All the work I put into building my capital and avoiding those boring retail summer jobs would’ve been for nothing. If I can save even one of you from blowing up your account, this story’s worth sharing.