REKT - Trading Glossary

REKT (short for “wrecked”) is popular crypto slang describing someone who has suffered significant financial losses, typically through poor trading decisions, market crashes, or falling victim to scams.

Origin and Usage

REKT comes from:

• Gaming culture where “wrecked” meant decisively defeated
• Crypto adoption to describe financial losses
• Community expression of shared trading pain
• Meme culture making light of serious losses

Levels of Being REKT

Lightly REKT:

• 10-25% portfolio loss in short timeframe
• Bad entry timing on a pump
• Small position gone wrong
• Recoverable losses with time and patience

Moderately REKT:

• 25-50% portfolio loss from major mistakes
• Holding through major market crash
• Multiple bad decisions compounding losses
• Significant impact on financial situation

Absolutely REKT:

• 75-100% portfolio loss from catastrophic decisions
• All-in trades gone wrong
• Falling for scams or rug pulls
• Life-changing losses requiring major adjustments

Common Ways to Get REKT

Trading Mistakes:

• FOMO buying at market tops
• Panic selling at market bottoms
• Overleveraging positions beyond risk tolerance
• Emotional trading without strategy

Market Events:

• Flash crashes causing liquidations
• Bear market downturns destroying portfolios
• Regulatory news causing sector-wide selloffs
• Black swan events nobody predicted

Scams and Fraud:

• Rug pulls where developers abandon projects
• Exit scams by project teams
• Fake websites stealing wallet information
• Social engineering attacks targeting individuals

REKT Stories on pump.fun

Common pump.fun REKT scenarios:

• Aping into obvious scam tokens
• Buying at peak FOMO and holding to zero
• Missing graduation sells and riding tokens down
• Getting front-run by MEV bots repeatedly

Psychology of Being REKT

Emotional Stages:

• Denial - “It’s just a dip, it’ll recover”
• Anger - Blaming developers, whales, or market manipulation
• Bargaining - “If it gets back to X, I’ll sell”
• Depression - Accepting the magnitude of losses
• Acceptance - Learning from mistakes and moving forward

REKT Recovery Strategies

Financial Recovery:

• Stop trading until emotions stabilize
• Assess remaining capital and create new plan
• Start small with conservative strategies
• Focus on income generation outside crypto

Psychological Recovery:

• Accept responsibility for decisions made
• Learn from mistakes without dwelling
• Seek support from community or professionals
• Maintain perspective on long-term goals

Avoiding Getting REKT

Risk Management:

• Never invest more than you can afford to lose
• Diversify holdings across multiple positions
• Use position sizing appropriate to risk level
• Set stop losses and stick to them

Education and Research:

• Understand projects before investing
• Recognize scam patterns and red flags
• Stay informed about market conditions
• Learn from others’ REKT experiences

REKT Culture and Memes

In crypto culture, being REKT:

• Creates shared experiences and community bonds
• Generates memes and humor from pain
• Serves as education for others to avoid mistakes
• Builds resilience in the crypto community

Famous REKT Events

Historical REKT moments:

• Terra/Luna collapse destroying portfolios overnight
• FTX bankruptcy trapping billions in funds
• Multiple DeFi hacks causing 100% losses
• Countless pump.fun rug pulls and scams

Learning from REKT

Being REKT teaches:

• Humility about market unpredictability
• Risk management importance firsthand
• Emotional control necessity for success
• Research value over FOMO decisions

REKT vs. Temporary Losses

Being REKT implies:

• Significant permanent capital loss
• Poor decision making leading to losses
• Emotional impact beyond just money
• Lesson-learning opportunity for growth

Temporary losses are:

• Normal market volatility
• Paper losses that may recover
• Part of investing process
• Manageable within risk tolerance

Community Support

When someone gets REKT:

• Community rallies with support and advice
• Shared experiences help normalize the pain
• Educational discussions prevent others’ mistakes
• Sometimes fundraising for extreme cases

REKT Prevention Mindset

Healthy Approaches:

• Assume every trade could go to zero
• Plan for worst-case scenarios in advance
• Maintain emergency funds outside crypto
• View losses as tuition for market education

Moving Forward After REKT

Rebuilding Steps:

• Take time away from trading to process
• Analyze what went wrong objectively
• Start fresh with improved knowledge
• Implement better risk management systems

Remember: Getting REKT is a common experience in crypto that often leads to better trading habits and risk management. While painful, it’s frequently a necessary learning experience that creates more disciplined and successful traders in the long run.