If you keep getting liquidated and haven’t made progress, then don’t play anymore. This is not a market issue; it’s your issue.

Your repeated liquidations indicate three problems:

• First, you don’t understand risk management.

• Second, you cannot control your greed.

• Third, you have no respect for the market.

The three major sins of liquidation: Remember them to pay less tuition

1. Over-leveraging

The core reason for liquidation is—using leverage inappropriately. You think about making quick money with ten or twenty times leverage, but little do you know, the higher the leverage, the risks are magnified tenfold, and even a slight market fluctuation will wipe you out. The volatile nature of the crypto market is not accidental; it’s a rule!

Advice: Leverage is not for beginners; even experts only dare to use it within a reasonable range. If you cannot control yourself, don’t touch high leverage.

2. Lack of stop-loss concept

Not having a stop-loss means waiting to be liquidated. When losses exceed your tolerance level, not only will you lose your capital, but you will also lose your rationality. The market repeatedly proves: as long as you do not set a stop-loss, the market will eventually teach you a lesson.

Correct approach: Before each trade, preset your stop-loss point; it must never be vague. “I’ll see later” is a grave-digging act.

3. Ignoring market signals and following emotions

Market fluctuations are always accompanied by panic and greed; the main players are experts at using these temptations to lure in unsuspecting traders. You get liquidated because your mind is controlled by emotions—chasing highs when the price rises, stubbornly holding when it falls, and ultimately getting mercilessly devoured by the market.

Three tips to avoid liquidation traps

1. Prioritize risk: Always remember that making money is not guaranteed; staying alive is the top priority.

• Only use the portion of funds you are willing to “lose,” such as below 10%, and never invest your living expenses.

• Likewise, set a clear stop-loss point before each order, such as exiting immediately if you lose 5%-8%.

2. Maintain rational trading: Never chase highs or lows and keep a distance from emotions.

• Everyone makes money in a bull market, but many still get liquidated at the peak. No matter how good it looks, remember the risks behind rational analysis.

• Do not blindly “catch the bottom” during a sharp decline; use data and technical analysis to assist in judgment, eliminating “assuming.”

3. Always learn, summarize the lessons from each liquidation.