A Costly Lesson in Risk and Concentration
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The failed trade underscores the dangers of concentrated exposure to a single narrative. By allocating $23 million across correlated AI tokens without diversification or stop-losses, the investor amplified downside risk. As AI hype fades, markets are demanding real utility—not promises.
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Overconcentration is one of the fastest ways to magnify losses.
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This highlights why position sizing matters as much as conviction.
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Concentration turns a thesis into a gamble.
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Correlated bets magnify risk, not conviction.
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When Wall Street pays attention, it usually means real volume is coming.