In the last 100 minutes, the cryptocurrency market witnessed liquidations totaling $275,000,000. Why does this happen? The primary reason is that many traders lack the skills and knowledge required for successful trading. They often follow social media influencers on platforms like Instagram, TikTok, or YouTube, who flaunt massive profits, believing they can replicate the same results without a clear plan.

Here’s the harsh truth: those influencers likely have a well-defined strategy, including precise entry and exit points. Unfortunately, most new traders dive into the market blindly, chasing quick gains. This lack of preparation and understanding leads to costly errors, ultimately resulting in widespread liquidations.

How to Protect Yourself from Liquidation:

1. Secure Profits Gradually: When the first take-profit (TP-1) target is reached, lock in some gains. Waiting for every target to be hit is risky—partial profits help you safeguard what you've earned while staying in the game.

2. Practice Effective Risk Management: Never over-leverage or over-trade. For example, if your portfolio is $200, limit each trade to 5-10% of your funds. With just 2-3 active trades, you can steadily grow your account without exposing yourself to unnecessary risks.

3. Focus on Patience and Consistency: Trading is not about gambling. It’s about making well-calculated decisions. Consistent, smaller profits are far better than chasing unrealistic returns through impulsive trades.

The Importance of Patience:

Think about it—when you work a job, you wait 30 days for your paycheck. Why not apply the same patience to trading? If you gamble away your capital today, you’ll have nothing left to trade with tomorrow. Safeguarding your funds is the first rule of trading survival.

Stop-Loss: Your Trading Lifeline

One of the biggest mistakes traders make is holding onto losing positions, hoping for a reversal, while quickly closing profitable trades out of fear. This mindset is flawed and can lead to significant losses.

If your trade goes against you, accept a small loss and move on. It's far better than allowing it to snowball into a devastating blow to your account. Always use stop-losses to limit potential losses and protect your capital.

Final Takeaway:

Trading isn’t about luck or quick wins—it’s about making calculated, disciplined decisions. If you’re not willing to commit to proper risk management, patience, and discipline, trading may not be the right path for you. Take the time to educate yourself, manage your trades wisely, and focus on building a secure financial future. Remember, safeguarding your capital today ensures you have opportunities to trade tomorrow. Stay safe and trade smart.

#USJoblessClaimsFall #FranklinCryptoETF #liquidation

"Master the art of risk management and avoid costly liquidations when trading on Binance by understanding how they work and employing smart strategies."
Understanding Liquidations and How to Prevent Them on Binance
In the world of cryptocurrency trading, particularly when using leverage on platforms like Binance, liquidations are a significant risk. A liquidation occurs when your position is automatically closed by the exchange to prevent further losses, typically because your margin balance falls below the required maintenance margin. Understanding how liquidations work and how to prevent them is crucial for risk management.
What Causes Liquidations?
1. Leverage Levels: High leverage amplifies both gains and losses. If the market moves against your position, your losses can quickly exceed your margin.
2. Price Volatility: Cryptocurrency markets are highly volatile, making leveraged positions particularly risky.
3. Inadequate Risk Management: Failing to set stop-loss orders or over-leveraging your account increases liquidation risks.
How Liquidation Works on Binance
Initial Margin: The amount you need to open a leveraged position.
Maintenance Margin: The minimum balance required to keep your position open.
Liquidation Price: The price at which your position will be closed if your margin balance drops below the maintenance margin.
When the market price reaches your liquidation price, Binance will automatically sell your assets to cover the losses.
Tips to Prevent Liquidation
1. Use Lower Leverage: Start with lower leverage to reduce the risk of rapid liquidation. For instance, a 5x leverage is safer compared to 20x.
2. Set Stop-Loss Orders: These automatically close your position if the price moves against you, limiting potential losses.
3. Monitor Your Positions: Stay updated on market trends and news to make timely decisions.
4. Keep a Healthy Margin Balance: Regularly top up your margin to maintain a buffer against price fluctuations.
5. Diversify Your Portfolio: Avoid putting all your funds into a single position or asset.
6. Use Binance’s Risk Management Tools: Features like Isolated Margin can help limit losses to a specific position rather than affecting your entire account.
The Role of Risk Management
Successful trading on Binance requires discipline and a strong risk management strategy. Understanding your risk tolerance and setting realistic goals can help minimize losses. Avoid emotional trading, and always have a plan before entering any trade.
By learning the mechanics of liquidation and employing these preventative measures, you can trade more confidently and mitigate the risks associated with leveraged trading.
Disclaimer: This post is for informational purposes only and not financial advice. Always do your own research before trading.

In the last hour alone, the cryptocurrency market witnessed $300 million in liquidations. The root cause? Many traders lack proper trading knowledge and fall victim to unrealistic expectations set by influencers on platforms like TikTok, Instagram, or YouTube. These influencers often showcase impressive profits, leading novice traders to believe they can replicate the same results without understanding the strategies behind those trades.

The reality is that experienced traders often have well-crafted strategies, clearly defined entry and exit points, and strong risk management systems in place. Unfortunately, many retail traders jump into the market blindly, driven by FOMO (fear of missing out), and end up making costly mistakes. These missteps are often what lead to massive liquidations.

Key Strategies to Prevent Liquidation

1. Secure Your Profits Wisely
When your first take-profit (TP-1) level is reached, lock in a portion of your gains. Don’t wait for all targets to hit before taking action. Securing partial profits ensures that you walk away with something, even if the market reverses unexpectedly.

2. Practice Risk Management
Never over-leverage your trades. For example, if you have $200 in your trading account, limit your exposure to 5-10% per trade, or no more than $20. Entering 2-3 well-calculated trades with proper position sizing is far safer and more sustainable than risking your entire capital on one signal.

3. Patience and Discipline Are Non-Negotiable
Trading is a calculated endeavor, not a gamble. Success in trading comes from small, consistent wins over time—not from reckless attempts to hit it big. Just as you wait a month to receive your salary at work, you need to exercise the same patience when trading. Impulsive decisions often lead to costly errors.

Why Patience Is Critical

Trading is a long-term endeavor, not a get-rich-quick scheme. If you lose all your capital in one day due to poor decision-making, you won’t have anything left to trade with tomorrow. Protecting your capital should always be your top priority.

Stop-Losses: Your Safety Net

One of the most common mistakes traders make is holding onto losing positions, hoping for a recovery, while prematurely closing profitable trades out of fear. This approach is counterproductive.

Cut Losses Early: When a trade moves against you, close it with minimal losses instead of letting the losses grow.

Use Stop-Loss Orders: A stop-loss ensures that your losses are limited, allowing you to manage your risk effectively and focus on the next opportunity.

The Bottom Line

Trading isn’t about chasing quick profits—it’s about making smart, informed decisions. If you lack the patience, discipline, or understanding to manage your risks, trading may not be the right path for you. However, if you approach it with a clear strategy, careful planning, and a long-term mindset, you can achieve consistent success.

Stay safe, manage your risks wisely, and remember that trading is a marathon, not a sprint. Your future self will thank you for trading responsibly.

#liquidation #ElSalvadorBTCReserve #USJoblessClaimsFall #FranklinCryptoETF

Our $BTC scenario worked well and if we don't experience any major surprises after this stage, it will close at a good level after the trend #liquidation is cleaned up tremendously.

There are two issues we need to follow after this stage:
In the worst case, it should now maintain the upper red box levelIt should not revisit the region between the trend line and the middle green box again before body closing above the 101,200 level

When these happen, the only thing we will expect will be the new #ATH

In order to maintain the strong appearance after ATH, we need to see a daily candle body close above the previous ATH level. After this, when the next correction swing starts in internal structure, it will not be a problem to visit back to the trend or to return from our levels slightly above it.

But if ATH is made and the candle body closes below the previous ATH level and remains as a wick, there may be some delays and departures for a while before voluminous movements.

I hope the sequel goes as we expected. Let's see.