Why Liquidations Happen and How to Avoid Them
In the last 60 minutes, $310,000,000 has been liquidated in the crypto market. Why? Because many traders don’t know how to trade properly. They get swayed by Instagram, TikTok, or YouTube traders showing huge profits, thinking they can do the same.
Here’s the reality: These influencers may know what they’re doing. They have the right strategy, entry points, and exit points. But most traders lack this knowledge, enter blindly, and hope for profit. This leads to mistakes and massive liquidations.
Key lessons to avoid liquidations:
1. Take profits strategically: If you see TP-1 being reached, take profits. Don’t wait for all targets — protect what you can.
2. Risk management is critical: Don’t overextend yourself in trading. If you have $100, use only 5-10% of your wallet for a few signals (2-3 trades). This is enough for safe growth.
3. Be patient and disciplined: Trading is not gambling. It requires patience and discipline. Small, stable profits are better than reckless trades.
