Why Traders Get Liquidated Despite Perfect Analysis:
Even with excellent technical analysis, chart reading, and market knowledge, liquidation still occurs.
The market doesn't strictly adhere to technical patterns, trendlines, or support/resistance zones.
Market movements are often driven by FOMO (fear of missing out) and strategic actions of big players (whales).
Markets tend to move in ways that benefit the majority, sometimes aligning with analysis to boost trader confidence.
Technical patterns serve more as psychological frameworks than guaranteed rules.
The Reality of Futures Trading on Binance:
Many traders see Binance as a casino, hoping to turn small amounts into large gains overnight.
While substantial gains are possible, not every trade yields significant returns.
Success in futures trading hinges on careful margin and leverage management.
The Key to Avoiding Liquidation:
Use no more than 0.5% of your wallet and a maximum leverage of 6x when entering a trade.
Enter a long position in a reliable asset.
If the price drops, apply a Dollar-Cost Averaging (DCA) strategy by adding only 1% of your wallet.
Maintain a "zero liquidation" approach by keeping the entry price near breakeven after each DCA.
When the market returns to breakeven, remove any extra margin added during DCA to optimize your position.
Repeat the process if the market dips again, only adding DCA positions at a 1-day support zone.
By adhering to this strategy, you increase your chances of closing trades profitably as the market moves in your favor.