Lesson from swing trading: WETH traders' dilemma from a $2.87 million unrealized profit to only $30,000 in gains

A trader who specializes in swing trading has recently become a cautionary tale. According to on-chain monitoring, trader nemorino.eth bought 9,043 WETH at an average price of $3,085 over two months from late last year to early this year. The unrealized profit once soared to $2.87 million, but ultimately, during the decline, he hurriedly sold, earning only $30,000 in profit from 3,000 WETH. Even more painful, the remaining 4,089.83 WETH now has an unrealized loss of about $472,000.

Buying at the high, but not setting a proper take-profit level

The key issue in this case is that the trader bought at the peak without establishing a reasonable take-profit strategy. When the unrealized profit reached $2.87 million—an amount that would excite any trader—he chose to wait and hope for further gains. As the market reversed, he was forced to cut losses passively during the decline, shrinking his profit from seven figures to five figures.

Take-profit challenges: the eternal dilemma of swing trading

This is the hardest part of swing trading: deciding when to sell is often more difficult than deciding when to buy. Greed causes missed take-profit opportunities, while fear forces traders out prematurely when they shouldn’t. When the $2.87 million paper profit disappears, all that remains is regret over missed timing.

And the harsher reality is that even if the remaining 4,089.83 WETH eventually rebounds, the unrealized losses during this period are enough to make one reflect: swing trading may seem simple, but it truly requires a calm mindset and strict discipline.