risky

Shorting Ethereum Was Costly — Reassess Risk and Position Size

I shorted ETH two days in a row and lost a lot of money. I misjudged the momentum and got squeezed both times.

That experience made me reassess my risk management and position sizing when trading volatile crypto like Ethereum. I need tighter stops and clearer entry criteria.

Going forward I'll be more cautious: either avoid shorting into strong rallies or only trade smaller, well‑defined positions until I rebuild discipline.

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Analysis

The losses show ETH can rapidly reverse and squeeze shorts; my entries lacked validation and my position sizing amplified drawdowns. Volatility and momentum can devastate directional bets without stri...

Recommendation

Treat shorting ETH as risky: reduce position size, set defined stop losses, and avoid aggressive shorts during clear uptrends. Consider waiting for confirmed trend weakness before re-entering.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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