Swing trader’s failure story: $2.87 million that should have been gained ultimately turned into a negative $470,000

A real on-chain swing trader’s experience serves as a reminder of the importance of taking profits. According to tracking data, this operator named nemorino.eth went through a complete cycle from peak prosperity to deep losses, and the final trading result is quite regretful.

Precise Bottom-Fishing Moment: 9,043 WETH at an average price of $3,085

Between November 24, 2024, and January 20, 2025, this swing trader gradually bought 9,043 WETH at an average price of $3,085. Given the market context at the time, this was a pretty good entry point — the price was relatively low, and the average cost was quite reasonable. This is a typical swing trading approach: buying low and waiting for a rebound.

Peak Unrealized Profit: Why Didn’t They Take the $2.87 Million Profit?

By mid-January, this trader’s unrealized profit reached an impressive $2.87 million. What does this number mean? Based on the initial investment scale and risk, this was already a substantial gain. For any rational trader, this would be the perfect time to lock in profits and execute a take-profit plan.

Unfortunately, the trader chose to hold on. Was it optimism about the market outlook? Or greed? Whatever the reason, this decision ultimately changed the entire outcome of the trade.

Market Reversal and Passive Loss Cutting: Only $30,000 Profit Left

About 12 hours ago, as the market started to decline, the trader decided to exit. They closed 3,000 WETH during the downturn, but by then, the unrealized profit had already shrunk significantly, ending with only $30,000 in realized gains. This starkly contrasts with the previous unrealized profit of $2.87 million — a loss of $2.84 million in an instant.

Current Situation: Remaining Position Deep in $470,000 Loss

Even more painful is that the trader still holds 4,089.83 WETH, which is now deeply in about $470,000 unrealized loss. This means their swing trade not only failed to achieve the expected gains but also resulted in serious losses.

This case illustrates that the core risk of swing trading isn’t the entry timing but the execution of take profits. When unrealized gains reach hundreds of thousands or millions, locking in profits promptly is far more important than continuing to gamble on the market. The trader’s mistake essentially boils down to neglecting discipline in taking profits, serving as a warning to many swing trading enthusiasts.