The Secret to avoid being Liquidated and Making Profit from Future Trades
Hello everyone hope you are not fine because many of you are Liquidated in recent crash. While majority is in loss I am still making good profit from future trades. My future Trade success ratio is almost 95%.
Future trading can be highly profitable but also comes with significant risks, including the risk of liquidation. Here are the top 10 things that I myself apply to avoid liquidation:
1. Understand Leverage: Leverage amplifies both gains and losses. Use it wisely and understand the implications of the leverage ratio you are using.
2. Set Stop-Loss Orders: Always use stop-loss orders to limit potential losses. This helps in automatically exiting a position before losses become too large.
3. Maintain Sufficient Margin: Ensure you have enough margin in your account to cover potential losses. This acts as a buffer and helps in avoiding margin calls and liquidation.
4. Diversify Your Portfolio: Don't put all your capital into a single trade. Diversification can help spread risk and reduce the impact of any single position going against you.
5. Stay Informed: Keep up with market news, economic indicators, and other relevant information that can impact your trades. Being well-informed helps in making better trading decisions.
6. Use Risk Management Strategies: Allocate only a small percentage of your capital to each trade and avoid overexposure to any single asset.
7. Monitor Positions Regularly: Keep a close eye on your open positions. Regular monitoring allows you to react quickly to market changes and adjust your strategies accordingly.
8. Be Aware of Volatility: High volatility can lead to rapid price movements and unexpected losses. Understand the volatility of the asset you are trading and adjust your strategies accordingly.
9. Avoid Emotional Trading: Stick to your trading plan and avoid making decisions based on emotions. Fear and greed can lead to poor decisions and increase the risk of liquidation.
10. Understand the Contract Specifications: Know the details of the futures contracts you are trading, including expiry dates, settlement procedures, and any specific rules that may affect your trades.
By keeping these points in mind, you can better manage the risks associated with futures trading and reduce the likelihood of facing liquidation.
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