Contract loss of 300,000 oil, sharing the experience and lessons of liquidation.

Since entering the crypto world, the money in my pocket has been decreasing, I haven't bought new clothes for myself, and I haven't enjoyed various big meals; instead, I've had more insomnia and a lot more white hair.

Just like a netizen said, I am greedy and I deserve it. Yes, leverage is an amplifier of human nature, it constantly inflates our greed, and we often can't help but max out the leverage just to have more returns, but often the results are contrary to expectations; what you get from maxing out the leverage is not a doubling of returns, but often a liquidation email reminder. Human nature cannot withstand the test; once you want to quickly recover losses, you will make the following mistakes: opening orders repeatedly without careful analysis of the trend, forgetting position management and going all in, not setting stop-losses while expecting the market to develop according to your imagined trend. The contract market will consume the liquidity that is within reach; when you are using high leverage with full positions and no stop-losses, it's not that the market makers want you to liquidate, but because you provide the most recent liquidity, to match buy and sell orders, your liquidity will be prioritized, so liquidation is inevitable. Unless you open positions near strong support and resistance, but you open orders thoughtlessly, there have been several times when you were near support and resistance, I think you have forgotten where the support and resistance are; all that is in your mind is the phrase 'recover losses'. Therefore, you will find that if we avoid these conditions that lead to liquidation, can we effectively reduce the probability of liquidation and even improve the win rate.

So our method to reduce liquidation is emerging; first, we must analyze the current trend rigorously before opening orders, provided that your trading system is sound, then do not go all in with high leverage, lower your expectations, do not think about quickly recovering losses, just aim to make 5% each time, leave yourself several opportunities for stop-loss, for example, liquidating only after 20 stop-losses; finally, each time you open an order, always include stop-loss and take-profit, do not hold onto losing positions, do not be greedy, take-profit should be at a 1:1 risk-reward ratio by closing half of the position, and aim for the target with the remaining half.

I will continue to share my trading insights, hoping to make progress together with you, and I also hope you write often, so that you can observe your behavior more calmly and objectively, and discover your own issues.