How to avoid liquidation, if you are unfortunate enough to encounter it, I will teach you how to deal with it

Don't be afraid of ten thousand, just be afraid of one, it is good to learn more.

We all know that opportunities and risks coexist. Many novices play contracts as soon as they come in. Due to the "novice effect", they may have made a few waves, but their cognition is limited. When the liquidation occurs, they don't react to what happened and it's gone. To put it bluntly, not only novices, but many veterans are also inevitably faced with liquidation.

Liquidation means that the investment is lost, and there is no principal left, and it is directly kicked out by the system. The worst case may be that the principal is gone and there is debt.

So how to prevent liquidation?

First, don't play too crazy with leverage. High leverage can make a lot of money with a small amount of leverage, but the risk is also doubled. People with high leverage have too many chances of liquidation. Assess what kind of risk you can bear.

Second, the stop loss must be set well. The market is unpredictable. If the direction is wrong, you will lose a lot without a stop loss. Stop loss should be combined with your position and operation. Both technical stop loss and capital stop loss should be used.

Third, learn more and practice more. Read books, take classes, analyze cases, learn lessons from actual combat, and improve strategies.

Fourth, find a reliable platform. The platform must have a good reputation, strict supervision, and a wide range of trading products. Don't touch those small platforms with lax supervision and poor reputation. #BTC