If you have lost everything in Futures trading and wish to recover everything and more, please listen to me!
In futures trading, many traders ask, "Why did I get liquidated?" Often, it’s due to a lack of solid risk management and unrealistic expectations. Many believe futures trading is difficult and get overwhelmed by its high volatility. But with the right strategy, it can actually be easier than spot trading. Here’s a guide to help you understand how to trade futures effectively and avoid liquidation by following a simple approach.
Why Traders Get Liquidated
Even with strong technical analysis, chart reading, and understanding of market trends, many traders find themselves liquidated. Why? Because markets often don’t follow the traditional patterns people rely on, like “higher highs,” “higher lows,” or other standard signals. Instead, the market moves in directions that serve the big players (often called “whales”) who control significant capital.
These large players can cause sudden market fluctuations, which lead to liquidation for traders who rely solely on charts. Sometimes, they may move the market in a way that seems favorable, only to lure in more retail traders before reversing direction to maximize their profits. So, it’s essential to realize that FOMO (fear of missing out) can often trap traders, and chasing predictable patterns without strong risk management can be risky.
Futures Trading Is Not a Casino
Many people treat futures exchanges like Binance as if they’re casinos. They assume they can turn $100 into $1,000 overnight with little effort. While large gains are possible, they are rare. Consistent profits require discipline and a strategy based on caution and risk control, rather than luck.
Key to Avoiding Liquidation: Margin and Leverage Control
To avoid liquidation, focus on a simple rule: manage your margin and leverage responsibly. Here’s a breakdown of how to apply this approach.
1. Limit Trade Size to 0.5% of Your Wallet: Only use 0.5% of your total trading wallet in a single position. This reduces your exposure and lowers the chance of being forced to liquidate if the market suddenly turns against you.
2. Use a Maximum Leverage of 6x: High leverage can lead to higher gains, but it also increases your liquidation risk. Limiting leverage to 6x gives you more room to withstand market fluctuations without hitting your liquidation point.

Step-by-Step Strategy with an Example
Let’s go through a detailed example of how to manage your position to avoid liquidation.
1. Initial Trade Setup:
Assume you have a $10,000 trading wallet.
Take 0.5% of this amount ($50) and enter a long position in a well-researched coin like Bitcoin (BTC) at a price of $30,000.
Use a 6x leverage, which means you’re actually trading with $300 worth of BTC.
By following this rule, even if the market moves against you, you won’t face immediate liquidation.
2. Dollar-Cost Averaging (DCA) if Price Drops:
Suppose BTC falls from $30,000 to $28,000.
Instead of panicking, add another 1% of your wallet ($100) to your position at $28,000. This brings your total investment to $150.
Now, your average entry price adjusts closer to the new market price.
3. Rebalancing Your Position:
Let’s say BTC bounces back to $29,000, nearing your breakeven point.
At this point, remove the extra $100 (the DCA amount) to reduce your exposure and rebalance your position back to the original $50.
This improves your overall entry price and maintains your initial margin discipline.
4. Repeat DCA if Necessary:
If BTC drops again, this time to $27,000, consider adding another 1% of your wallet ($100) to your position.
With this DCA strategy, your average entry price will move closer to the current market price, lowering the distance to breakeven.
Let’s assume your average entry price after this additional DCA is now around $28,000.
5. Taking Advantage of a Bounce:
If BTC rises back to $28,000 (your new average entry price), exit the extra margin you used for the DCA, which was $200 (the two $100 increments).
This reduces your exposure back to the initial $50 and makes your entry price even more favorable.
If BTC continues to rise, any profit gained from this move would go directly to your account without risking a large liquidation due to excessive leverage or margin.
6. Exit and Profit:
If BTC eventually returns to $30,000 or higher, your initial position will now be in profit.
The DCA strategy has allowed you to withstand market volatility and hold on for a favorable exit without risking liquidation.
In this way, by controlling leverage and using small, targeted increases in your position, you maximize your resilience and allow the market to “come to you” rather than getting caught up in unpredictable moves.
Summary of Key Points
Margin Control: By limiting your initial trade to 0.5% of your wallet, you’re trading responsibly and avoiding large losses.
Leverage Discipline: Sticking to a max leverage of 6x helps you withstand market swings without hitting your liquidation point.
Strategic DCA: Adding to your position only at significant levels (e.g., strong support levels on the daily chart) brings your average entry closer to the market price, reducing the chance of losses and liquidation.
Exiting Extra Margin at Breakeven: By removing the DCA amount when the market reaches breakeven, you improve your entry point and reduce risk, making it easier to lock in profits if the market moves in your favor.
Why This Strategy Works
This method is designed to take advantage of market movements over time while minimizing risk and avoiding liquidation. Instead of relying solely on chart patterns or technical indicators, you’re focusing on margin, leverage, and patience. By controlling the urge to chase big wins and using disciplined trading practices, you can better navigate the volatile nature of futures trading.
This approach emphasizes capital preservation and sustainable growth, rather than high-risk gambling. By following these principles, you give yourself the best chance to succeed without constantly worrying about being liquidated.
IT REALLY WORKS!
THANK ME BY TIPPING IF YOU FIND THIS ARTICLE HELPFUL TO FULFILL YOUR FINANCIAL GOAL.
BEST WISHES!
$BTC
$ETH
$BNB
#NEIRO #MASK #FLOKI #10000SATS #FUTURE

In 2020, I was left with just $183 in my Binance account, after a journey that started with $3,000 and had once reached a peak of $100,000. But crypto trading is unforgiving, and the markets slowly eroded my gains until I had almost nothing left. Throughout that time, I’d stuck to a habit that may have saved me—transferring $1 daily to a separate fund account. Even when my trading capital dwindled, I kept up with that $1 transfer every day. It wasn’t much, but it was a way to feel like I was still making progress, even in the smallest way. Four years later, that habit has become second nature, and now I transfer $5 a day.
During that period, everything seemed to be unraveling, not just my trading account. At home, I felt isolated—no one seemed to care, no one checked in, and just when things hit rock bottom, my girlfriend left. She took one of my phones, which had crypto stored on it, though I doubt she knew how to access it. She mostly used that phone to play games. Losing her was harder to take than losing my capital; she disappeared a month before my account hit zero, leaving me not only broke but alone. I was living in Shanghai at the time, waiting on a visa that kept getting delayed. Those who were in Shanghai in 2020 would understand—it was a chaotic year, full of lockdowns and restrictions. The embassy was processing visas slowly, and life felt as though it was at a standstill. I realized I needed to get away and clear my mind, so I decided to go to Lingyan Mountain and stay at a Buddhist temple there.
I ended up spending three months at the temple. Those months were tough. I went there hoping for some kind of clarity, or even enlightenment—some breakthrough that would put my life back on track. But it wasn’t like that at all. Life at the temple was about endurance and routine, not miraculous awakenings. I kept waiting for some sign or feeling of transformation, but nothing came. I had to find peace slowly, day by day. The monks didn’t talk much, but they welcomed me in silence, sharing their simple meals and daily rituals. Gradually, my body started to feel better. I gained weight, my hands stopped trembling, and I cut down on smoking and drinking. Without the constant urge to check my phone, my mind became quieter. My future still seemed uncertain, and I was holding onto that $183 without any real idea of what to do next.
Before I left, one of the senior monks gave me some parting words: “Go as you came.” It felt cryptic, and I didn’t understand it fully then, but those words stayed with me. I realized it wasn’t about leaving the mountain transformed; it was about finding the strength to face life again, just as I was. When I left, I downloaded Binance again and decided to start fresh with what little I had left. I wasn’t sure what the future held, but I knew I had to give trading another try, this time with a new mindset.
Here’s how I restructured my entire approach and how I made it through:
1. Focus on a Core Group of Cryptocurrencies
I realized that chasing every new coin was a recipe for disaster. Instead, I chose to focus on a handful of assets: BTC , ETH , BNB , #SOL , and #DOGE . Over time, I reduced it further, until now I primarily trade only BTC and ETH. This narrowed focus allowed me to study their patterns, understand market sentiment better, and stay disciplined. Jumping from coin to coin had led to poor decisions in the past, but this time, I was committed to staying patient with just a few assets.
2. Build a Strict Daily Routine
I established a routine to keep myself grounded. Every day, I wake up at 6:30 AM, take a cold shower, and do a morning exercise. The cold showers, especially during winter, were hard at first but quickly became essential for staying alert and clearing my mind. It was a way to start the day with discipline, and I noticed it sharpened my focus before I even sat down to trade.
3. Begin Each Day Outside the House
I found that trading at home created a lot of mental clutter. Instead, I started each day by heading out, usually stopping by KFC for a coffee to kickstart my morning. This separation helped me treat trading as a job, with clear boundaries. I made a rule never to open any trading software at home. It kept me disciplined and prevented those impulsive trades that had cost me so much in the past.
4. Trade with Low Leverage and Take Gradual Long Positions
One of the biggest lessons I learned was to avoid high leverage. I began focusing on low-leverage long positions, aiming for slow, steady growth rather than quick gains. I rarely went short, except in specific situations, like after major price rises. For example, I started shorting cautiously around $71,000, and I first tested this around $69,500, using stop-losses at each stage. When I saw an opportunity, I would add to the position gradually, letting my profits run instead of closing too soon. I found it essential to stick to the plan and avoid adding positions impulsively.
5. Implement Rigorous Risk Management and Hedging with Options
Hedging became a cornerstone of my strategy. When I had a strong directional prediction, I’d open a hedge position, using options at major resistance levels. For example, if the trend started reversing near resistance, I’d raise my take-profit and let the hedge run. I would also do “T” trades (short-term trades for quick profits), but this was something I practiced only after gaining experience. For new traders, I wouldn’t recommend this, as it’s risky without a clear understanding of the market.
6. Take Cooling-Off Periods After Each Market Cycle
After each big cycle, I’d take a half-month break. During this time, I’d switch to a phone with no trading apps, creating a complete disconnect from the markets. This cooling-off period kept me from making impulsive trades during moments of excitement or panic. After significant wins, it’s easy to lose perspective, but by taking these breaks, I could approach the market with a clear head once I returned.
7. Maintain the Habit of Daily Transfers and Structured Withdrawals
Throughout these years, I kept up the habit of transferring money daily into my fund account. Initially, it was $1, but I gradually increased it to $5 a day. Additionally, I followed a strict rule to withdraw 20% of profits to buy in the spot market. This helped diversify my holdings and allowed me to accumulate some spot positions, which I would hold for the long term. Some of these spot trades ended up at a loss, while others multiplied several times over. I would usually take out the principal once I was in profit, then set multiple take-profit orders at different levels, like 2x, 3x, 4x, and 5x. Even if some of these positions faced big drawdowns, I stayed patient and held on, only selling if they hit a pre-set stop-loss.
Looking Back and Moving Forward
Through four years of sticking to this disciplined approach, I’ve managed to avoid blowing up my account. My spot holdings have provided about 40% of my total profits, while my main gains came from trading contracts. If there’s one thing I’d say to anyone with only a small amount left—like $100 or $200—it’s this: step back, refine your mindset, and build a structured trading system. It’s not about making a million overnight. If you focus on steady, controlled growth, you can turn that small sum into something significant over time.
In this journey, I learned that patience, discipline, and self-control matter more than any quick strategy. It took four years of building habits, managing risk, and following a structured plan, but now I know it’s possible to climb back, even from just $183. It’s not an easy path, but if you’re willing to commit, that long-term approach is everything.

SUPPORT BY TIPPING.
#NEIRO #MASK #FLOKI
$BTC
$ETH
$BNB