Why Liquidations Happen and How to Avoid Them

In the past 60 minutes, $310,000,000 was liquidated in the cryptocurrency market. Why? Because many traders don’t know how to trade properly. They get influenced by Instagram, TikTok, or YouTube traders showing huge profits, thinking they can do the same.

Here’s the reality: those influencers might know what they’re doing. They have the right strategy, entry points, and exit points. But most traders lack this knowledge, entering blindly and hoping for profit. This leads to mistakes and massive liquidations.

Key Lessons to Avoid Liquidation:

1. Take Profits Strategically: If you see TP-1 hit, take some profit. Don’t wait for all targets—secure what you can.

2. Risk Management is Crucial: Don’t over-trade. If you have $100, only use 5-10% of your wallet for a few signals (2-3 trades). That’s enough to grow safely.

3. Be Patient and Disciplined: Trading isn’t gambling. It requires patience and discipline. Small, steady profits are better than reckless trades.

Why Patience Matters:

If you work, you wait 30 days for a salary. So why can’t you wait in trading? If you lose everything today, what will you trade tomorrow? Protect your capital.

Stop Loss vs. Holding Losses:

A major issue is that people hold onto losing trades, hoping they’ll recover, but they close profitable trades too soon. This is backward.

If your trade moves the wrong way, cut small losses early—it’s better than letting them grow.

Always use stop-losses to limit your risk.

Trading is not about quick wins; it’s about smart decisions. If you can’t manage patience, discipline, or proper risk management, trading may not be for you. Stay safe, manage wisely, and keep your future in mind.