CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How and why investors lose money

Can anybody explain why the investor sold the Darwin at this point?

There was no stop order from the beginning, otherwise the Darwin would have been sold earlier.
If the investor would have waitd 1 or 2 months, he would have cut the loss or could have left even.
Looks like buying in a falling price channel and selling when a small raising channel was left downwards?
Is that an investor strategy?

I just don’t understand it.

@CavaliereVerde was that the level of the former max. DD?
(investor picture is from KVL because I didn’t find another one with such a nice documentation of the action of 1 investor)

No it wasn’t .
The strategy is not so clear but I think it is more a time based exit.
Something like selling losing darwins after 3 months.

1 Like

You can find the same stuff on JMC BSL and many others… :wink:
I suggest you to read this discussion:

1 Like

simple, when the “investor” saw the initial fast recovery he was somewhat relieved (in hope and pray mode), but then the darwin consolidated for a wk or two, it broke his spirit and he closed out. he was probably watching darwin like a hawk everyday sweating.
the investor wanted straight up recovery and prob would have closed out at top.

The “investor” bought the high and never wanted to experience drawdown and lost faith in darwin once the DD occured.

2 Likes

@Muiris
You could be right analyzing only the AUM of KVL …

But you are wrong on the nature of the investor, it was a real institutional investor, a team of professionals with a company and site. I cannot disclose their identy.

They were wrong with KVL but it is posiible that they are winning with their portfolio.

1 Like

people are people, institutional or not.

they bought the high and sold the low

3 Likes