Emotional trading is the Covid-19 to traders. 😒

Procedure of saving your money from liquidation?💥

📊Liquidation happens when an investor's position is forcibly closed by a broker or exchange due to insufficient funds in the account to cover losses. Here are key strategies to avoid liquidation:

𝟏. 𝐔𝐬𝐞 𝐏𝐫𝐨𝐩𝐞𝐫 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭
𝑺𝒆𝒕 𝑺𝒕𝒐𝒑-𝑳𝒐𝒔𝒔 𝑶𝒓𝒅𝒆𝒓𝒔: Place stop-loss orders to automatically sell a position if its price moves against you beyond a certain point, limiting potential losses.

𝟐. 𝐌𝐚𝐢𝐧𝐭𝐚𝐢𝐧 𝐒𝐮𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐌𝐚𝐫𝐠𝐢𝐧
Ensure your account has enough margin (funds) to cover the open positions. Regularly monitor your balance to avoid falling below the required margin level, which could trigger liquidation.

𝟑. 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐲 𝐘𝐨𝐮𝐫 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨
𝑺𝒑𝒓𝒆𝒂𝒅 𝑹𝒊𝒔𝒌: Avoid putting all your funds into one asset or position. Diversifying helps to mitigate risk, as losses in one area may be offset by gains in another.

𝟒. 𝐌𝐨𝐧𝐢𝐭𝐨𝐫 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬
Stay informed about market trends, news, and events that could impact the assets you hold. Significant price movements, especially in volatile markets like cryptocurrencies, can lead to liquidation if not managed properly.

𝟓. 𝐀𝐯𝐨𝐢𝐝 𝐄𝐦𝐨𝐭𝐢𝐨𝐧𝐚𝐥 𝐓𝐫𝐚𝐝𝐢𝐧𝐠
Emotional decision-making can lead to taking excessive risks, such as over-leveraging or failing to cut losses in time. Stay disciplined and stick to your risk management strategy.

𝟔. 𝐔𝐬𝐞 𝐑𝐢𝐬𝐤-𝐭𝐨-𝐑𝐞𝐰𝐚𝐫𝐝 𝐑𝐚𝐭𝐢𝐨𝐬
Establish a favourable risk-to-reward ratio for each trade (for example, risking $1 to potentially earn $3). This helps you focus on trades with higher reward potential relative to the risks involved.