Most liquidations are due to traders' mistakes, but the real issue isn't luck—it's about making some common deadly errors. Understand these points to survive longer and earn more.
First is the seductive lure of leverage. Beginners get excited about 100x leverage, thinking they can turn things around instantly. But what happens? A 1% market fluctuation can wipe out your account. Don't play that way. Start with 3x to 5x leverage to keep your operations more stable and leave some room for survival.
Second, many people have a strange psychological resistance to stop-loss orders. They keep thinking "just a little more," as if the next candle will save them. Little do they know, this "just a little more" is the direct cause of liquidation. The correct approach is to set a 3% to 5% stop-loss immediately when opening a position, and move it up as the market moves in your favor. This way, you can truly lock in profits.
Another deadly mistake is going all-in with a full position. Betting your entire capital on one trade is a reckless mindset destined to lose. Change that—limit each position to within 5% of your total capital and diversify. Even if you lose once or twice, you won't be wiped out.
FOMO and panic are also major problems. Chasing gains when others are making money, then panicking and cutting losses when the market turns, often results in buying at the top and selling at the bottom. The solution is to pre-define your trading plan: buy when it's time to buy, sell when it's time to sell. Don't let emotions hijack your decisions.
Finally, don't overlook the nuances of the exchange itself. Issues like price manipulation and slippage are more likely during major news events. Choose reputable mainstream platforms and stay cautious during sensitive periods to avoid many pitfalls.
In the end, futures trading is about discipline and systems, not luck.
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LiquidationWatcher
· 5h ago
Stop-loss really is a lifesaver. I've seen too many people die on the words "wait a little longer," a painful lesson learned.
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DataChief
· 5h ago
100x leverage is truly a poison; it looks tempting but actually just sets a trap for yourself.
To put it simply, it's a lack of discipline—dreams of getting rich overnight are just too many.
Once stop-loss is set properly, there's nothing to fear; what you should fear are those "just a little longer" people, who end up receiving margin call notifications.
Going all-in with full position is definitely a gambler's mentality; diversifying your positions can really help you survive longer.
FOMO is the most terrifying because it turns you into a slave to the market, making you lose your mind.
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FOMOmonster
· 5h ago
It's the same old story. It's true what you said, but the real question is, can anyone really stick with it? As for me, I definitely can't, haha.
Most liquidations are due to traders' mistakes, but the real issue isn't luck—it's about making some common deadly errors. Understand these points to survive longer and earn more.
First is the seductive lure of leverage. Beginners get excited about 100x leverage, thinking they can turn things around instantly. But what happens? A 1% market fluctuation can wipe out your account. Don't play that way. Start with 3x to 5x leverage to keep your operations more stable and leave some room for survival.
Second, many people have a strange psychological resistance to stop-loss orders. They keep thinking "just a little more," as if the next candle will save them. Little do they know, this "just a little more" is the direct cause of liquidation. The correct approach is to set a 3% to 5% stop-loss immediately when opening a position, and move it up as the market moves in your favor. This way, you can truly lock in profits.
Another deadly mistake is going all-in with a full position. Betting your entire capital on one trade is a reckless mindset destined to lose. Change that—limit each position to within 5% of your total capital and diversify. Even if you lose once or twice, you won't be wiped out.
FOMO and panic are also major problems. Chasing gains when others are making money, then panicking and cutting losses when the market turns, often results in buying at the top and selling at the bottom. The solution is to pre-define your trading plan: buy when it's time to buy, sell when it's time to sell. Don't let emotions hijack your decisions.
Finally, don't overlook the nuances of the exchange itself. Issues like price manipulation and slippage are more likely during major news events. Choose reputable mainstream platforms and stay cautious during sensitive periods to avoid many pitfalls.
In the end, futures trading is about discipline and systems, not luck.