Trader Eugene’s interview transcript: Newcomers should focus on on-chain assets first, as most of the market does not care about fundamentals

Moderator: Taiki Maeda , Founder of HFA Research

Compiled by: Felix, PANews

Many people know Darryl as @0xENAS on Crypto Twitter/X, where he shares his trading tips and market insights every month. He is one of the best crypto traders, but his journey has been a bumpy one. After nearly going bankrupt in May 2021, he was able to become an investor and built one of the most prestigious funds in the field. Recently, Taiki Maeda, founder of HFA Research, conducted an exclusive interview with trader Eugene Ng Ah Sio, the following is the transcript.

For those who aren’t familiar with you, can you share a little bit about what you’re working on right now?

I co-founded Tangent, a multi-strategy investment firm where I focus on liquid markets and my partner Jason runs venture capital. I was previously the principal at Defiance Capital and entered the crypto space as a retail investor in 2020, and I have grown a lot since then.

You are a very successful trader now, but seem to have had some hiccups in 2021. Can you share your mistakes and what you learned from them?

In early 2021, I was not risk-averse and actively used leverage. I took profits in February, but re-entered in March and failed to avoid the market crash in May. Due to excessive risk exposure and buying on the dip with leverage, I suffered an 80% drawdown at the worst time and was forced to deliver core leveraged positions at the low point. It was brutal, but taught me the most important lesson: survival comes first.

I cut my losses and started over. A major mistake was over-concentrating my position in a single DeFi protocol, which did not recover after the market downturn. No matter how strong my convictions were, that loss made me realize the need for diversification.

The key is to stay at the table. No single trade should bankrupt you. Adaptability, risk management, and learning from your mistakes are the keys to long-term success. Even today, minimizing the risk of bankruptcy is the most critical factor we address when determining position size.

How has your trading style evolved?

The first is understanding how to position – looking for asymmetric opportunities with huge upside potential. The harder part is identifying it in real time. It comes from experience, trial and error, and developing instinct.

Crypto trading is still instinctual for me. When I see a new opportunity, I usually get a hunch within minutes, and over time I’ve learned that my initial hunch is usually correct. Looking back, I try to analyze what triggers that instinct — what specific factors give me confidence in an investment. The pattern tends to repeat. While the market is constantly evolving, the biggest winners often have similar characteristics.

How do you deal with the psychological aspect of trading?

It’s a huge challenge. In a 24/7 trading market like crypto, you’re constantly battling greed, fear, and the feeling that someone is going to abandon you. Keeping a clear mind is crucial, and I’ve even stopped trading completely for two or three days at times to adjust.

One of the key lessons I learned is that you can’t catch everything. You have to accept the reality of missing out on some opportunities. I stuck to my area of expertise. Recognizing your strengths and ignoring distractions are critical to long-term success. As GCR once said, “He who chases two rabbits catches neither.”

What do you think about bet sizing?

I believe in concentrated positions. At times we had 80% of our portfolio invested in the top 3 ideas. The key is to align your portfolio with your most confident bets, making sure the size matches your convictions. Of course, this also means you need strict risk management to avoid huge losses.

How do you deal with the internal struggle of wanting to avoid risk while also wanting huge returns?

Here’s a conundrum. In the first cycle, I took huge risks, like investing 80% of my net worth in a single asset. While it may seem ridiculous in hindsight, that audacity paid off big time. Now, as a second-cycle investor, I’m more cautious, but I still ask myself: What made me make those big moves before, and how can I replicate that now without being reckless? The challenge is taking risks without losing my previous convictions, while still being realistic about market volatility.

You invested 80% of your net worth in AVAX in 2021. Looking back, would you make the same decision again if you had the chance?

That’s a hard question to answer. In hindsight, it seems ridiculous, but that risk earned me significant compounding returns. Today, I ask myself if I could do the same thing again. As I’ve matured, I’ve become more aware of risk and have a completely different set of systems and frameworks to prevent myself from making big mistakes. Back then, I was naive, and I think that mindset played a huge role in my success in the last cycle. It’s important to be aware of the risks, but it’s also important to dare to dream when the market presents you with an opportunity.

So, you're saying that you're now more cautious in your investment approach, but you're still taking the same level of risk in order to achieve excess returns?

That's right. As daunting as it may be, it's critical to make large, concentrated bets. It's hard, but that's where the best cycle returns come from. You have to be willing to take those risks, even if they make you uncomfortable.

It sounds like you’ve developed a lot of disciplined habits over the years. Can you share an example of a bad trade you made and what you learned from it?

I am only human and I make mistakes all the time. The most recent one that sticks out to me was when I went long a large amount of SOL at $210 and didn't follow my $200 stop loss. The most important lesson in trading is to set a stop loss and stick to it. Once you are careless, mistakes can be much more dangerous and you risk far more than you planned at the beginning of the trade.

What would you say to yourself then?

I would ask myself, "If you sold your entire portfolio today, would you buy back the same assets in the same proportions?" Most people realize they wouldn't, but they continue to hold bad positions out of obsession. In addition, opportunity cost is important - every dollar in one asset is a dollar not invested somewhere else.

Another thing is to avoid the “make all your money back in one trade” mentality. This is a common trap. Don’t revenge trade, but focus on accumulating small wins.

How do you know when to lighten your position?

This is the hardest part. Many people hold on to losing positions because of an emotional attachment or simply the hope that things will get better. But the key is to be honest with yourself. If you have reassessed your view and the situation has not improved, then it is time to move on ("cut your losses"). This is the dilemma many retail investors face.

How can you ensure your biases don’t cloud your judgment?

Having a team definitely helps. At my company, we make everything transparent, so when I do something questionable, people can point it out. Accountability keeps me in check. We do rigorous and often brutal post-mortems on every major decision we make, and we encourage everyone, including new hires, to actively point out more “senior” members of the company in a brutally transparent way. There is no room for ego in the market, and building a team that is committed to radical honesty without emotion is crucial. If you’re on your own, find someone to share your stance with and get feedback from. It helps mitigate emotional decision making.

So, accountability plays a big role in staying focused?

Absolutely. Having a team or a trusted person to discuss deals with ensures that you are not left in the lurch when things go wrong. If a mistake is made, it is important to accept it and move on, rather than digging yourself deeper into the hole. Accountability prevents you from making more mistakes.

What do you recommend participants do if they want to find a group or friends they trust?

A lot of alpha has moved from Crypto Twitter/X to Telegram and Discord communities. If you are just starting out, Twitter/X is a great platform to build a network presence and share ideas, but today I prefer Telegram as the primary communication medium.

What traits do successful traders have in common?

Successful traders are good at handling pressure and can calmly make decisions when things get volatile. This is not something that can be easily learned - it is an innate skill. If you have it, hone it. If not, recognize it and don't force yourself into high-pressure situations. It is critical to recognize where your strengths and weaknesses are and choose your positions accordingly.

What are the most common mistakes traders make?

It’s not uncommon to see people start fantasizing before something even happens. This happens when people get caught up in the idea of “success” because their portfolio has grown and they start making major changes to their lifestyle. They think the money on paper is real money and they go out and buy things they don’t need, like expensive cars or luxury watches. But the reality is that unless the money is in a bank account and taxes are paid, it’s just points on a scorecard. I’ve always looked at cryptocurrency this way – it’s a game and it’s not real money until it’s turned into cash. When players don’t understand this, they often mismanage their wealth and lifestyle.

What are some common misconceptions people have about cryptocurrency?

One of the biggest misconceptions is that you should allocate capital based on fundamentals. People think that if a project has strong fundamentals, then the price will follow. But in reality, the market doesn't care about fundamentals 90% of the time. Making money is really about predicting which narratives will take off first. Fundamentals are important when there's a catalyst, but most of the time it's about catching the next trend and making a call when you see it. That's been my experience, anyway. It's a bit like when you know something is going to happen and it happens out of the blue, and you do your best to respond because the market can move faster and further than you expect.

For someone entering the crypto space today, how would you advise them to be successful?

To be honest, if I were getting into crypto today, I would question whether it was worth it. But if you still want to get into crypto, I would say focus on on-chain assets first. They have the best upside potential and can provide the fastest compounding returns for a smaller portfolio. But on-chain opportunities won’t be around forever - there is a certain seasonality to on-chain assets, and you also need to be able to trade on centralized exchanges when opportunities in the on-chain market dry up. Both levels of trading are key, but focus on mastering one and becoming proficient in the other, don’t try to do both at the same time.

What are your personal goals for the next 10 years? Do you think cryptocurrency is just a means to an end?

First of all, I love this "game" a lot. Competing with the best traders and investors in the world is a big reason why I'm in this industry. My goal for the next 10 years is to build the best proprietary fund in crypto. In the long term, my sights have turned to the stars. I've always dreamed of contributing to humanity becoming an interstellar species. A big part of that is supporting space exploration in any way I can. One of my bucket list goals is to go to space before I die.

So, do you think cryptocurrencies are more than just wealth accumulation, or part of a broader vision?

That's right. A lot has been said about the mission of crypto, and it doesn't need to be repeated here. Beyond that, for me, as a platform for achieving extraordinary wealth, cryptocurrency also gives us the opportunity to compete on a global scale. I want to use this success to support larger causes such as biomedical research, space exploration, and environmental protection. In my company, through personal investments by my co-founders and I, we actually invest in robotics, biocomputing, home cancer detection, and other non-crypto related cutting-edge technologies. Sometimes these founders are even crypto pioneers, or have an interest in crypto. It's all interconnected.

What advice would you give to someone who wants to be successful in crypto today?

My motto is simple: "Live, Laugh, Long." "Live" means taking care of yourself and enjoying life while you are young. "Laugh" means appreciating where you are and making the most of every moment. "Long" means being patient, understanding when to allocate resources, and knowing where you want to contribute. If you have this mindset, you are not only contributing to society, but you are contributing to society in the long term. This is how you succeed, not only in crypto, but in life.

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