Many traders get liquidated in the future trading in an effort to get richer in shorter period. How we can avoid it ?
No doubt future trading is full of opportunities along with higher risk. Greater the risk - greater is reward for traders. If you are able to mitigate your risk you can avoid chances of frequently loosing and getting wiped out. Follow these guide lines to avoid liquidations in future.
Always Use Low Leverage : If you are a scalper and have enough funds then may jump in with higher leverage but for a day trader and especially for long term trade always Use low Leverage. Better to have trade in Cross margin with 5 to 10X only.
Control your Greed : It's basic human instinct which quite often puts all of us in a situation where we loose quite often. Thus avoid FOMO and never chase the rising stars, make your own long term strategy and stick to that plan.
Balance Trade with Long / Short Combinations: When you are trying to Long few coins always see the opposite how to short others it will balance out your risk. I'm a situation of pump and dump you have coins giving benefit in any direction of the market.
Follow Trend: Move with trend never go against the stream, if you started a trade and realized it's direction is not what you wanted, market has shifted the momentum it better to bear some loss and get out of it rather piling up the losses .. REVERSE button is also a good option. Cut your losses and ride the trend.
Avoid Too many trades: taking too many trades simultaneously also puts our portfolio in danger. So be selective and choose fewer coins to trade and develop your expertise in those coins that will yield better gains.
Be Patient: Trading is part of ups and downs and some time it's dull market. So be patient and wait for opportunity to enter. Be focused and make a plan of entry and exit after the technical and fundamental analysis ..as opportunity arise enter in trade and then wait patiently for execution of your plan.
Following these points we can maximise our gains and avoid losses in future trading.