Why Liquidations Happen and How to Avoid Them
In the past hour, a staggering $310,000,000 was liquidated in the crypto market. Why? Because many traders fall prey to the illusion of easy profits promoted by Instagram, TikTok, or YouTube influencers.
Here’s the truth: those influencers may have proper strategies—you don’t. They know their entry and exit points, while most traders enter blindly, leading to costly mistakes and massive liquidations.
Key Lessons to Avoid Liquidation:
1️⃣ Take Profits Strategically:
When you hit your first target (TP-1), take partial profits. Don’t aim for the moon every time—secure what you can.
2️⃣ Risk Management is Non-Negotiable:
Never over-trade. If you have $100, limit each trade to 5-10% of your wallet. Stick to 2-3 trades at a time to grow safely.
3️⃣ Patience & Discipline:
Trading is not gambling. Small, steady profits beat reckless, high-risk trades. Consistency is key.
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Why Patience Matters:
If you wait 30 days for a paycheck, why can’t you wait in trading? If you blow your account today, what will you trade tomorrow? Protect your capital.
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Stop Loss vs. Holding Losses:
The biggest mistake traders make is holding onto losing trades, hoping for recovery, while closing winning trades too early. This is backward.
If a trade goes the wrong way, cut small losses early to avoid bigger ones.
Always set stop-losses to limit risk and protect your account.
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Trading isn’t about overnight success—it’s about smart, calculated decisions. If you can’t manage patience, discipline, or risk, trading might not be for you.
Stay safe, trade wisely, and always plan for the long game. 🛡️