The market still wins. Trading with lever is an activity at high risk. This is a lesson that James Wynnlover of « trading-cassero » seems to have trouble learning. Indeed, After losing $ 100 million last weekhe just lost again 25 million dollars on his last position in Bitcoin (BTC).
- James Wynn underwent an extraordinary loss of $ 125 million in a week in bitcoin positions with lever effect.
- Lever effect trading has demonstrated its dangers, transforming opportunities into financial disaster for reckless traders like Wynn.
James Wynn: Bitcoin trader with positions worthy of games of chance
The crazy trader James Wynn So had already lost $ 100 million on a position Long (buyer) on Bitcoinbut this money thrown out the windows was not enough as lesson. The lover of gambling has opened very recently A new position with a 40x (!) Lever on Bitcointhus putting $ 100 million in play again.
This Wednesday, June 4, as Lookonchain reports in particular on xthe bettor has undergone a liquidation of 240 bitcoinsor more than 25 million dollars more flight!
“James Wynn has just been liquidated for $ 240 BTC ($ 25.16 million).
He also manually closed part of his position to reduce the liquidation price. (…) «
Lever effect: a very dangerous game
As Lookonchain mentioned above, there remains a position Long of 770 bitcoins in James Wynn, either in $ 80.5 million still at stake. But if the price of the BTC falls below 104,035 dollars, it will be again Game over.
In a week, James Wynn has lost $ 125 million With casino bets. On sound X accounthe tried to justify his losses by saying that » the market [crypto] was not free « And that » manipulators « have made it expressly liquidating it (we will pass his multiple insults to qualify them).
James Wynn’s case is a brutal reminder of dangers trading with lever effect. Admittedly, this type of trading can multiply the gains, but it can also, as we see here, multiply the losses and destroy a fortune (which was probably not built on the sweat of his forehead, given his way of squandering it).
With a lever x40a trader can open a position 40 times larger than its capital. But that also means that if the market Move just 2.5% against him – what is Nothing For a market at strong volatility like that of cryptos -, he will lose all of his bet.
Trading with a reasonable lever effect (X2 or X3) is already reserved for experienced traders (often institutional) and above all aware of the risks (with a risk management strategy, precisely). But for the others, it is as hazardous as playing casinoespecially on the crypto-active market.