### How to Avoid Liquidation in Trading
@sadvisor2
1. **Trade with only 2% of your balance per trade.**
2. **Set your stop loss to match or be less than the margin you used.**
### Common Excuses for Ignoring the 2% Rule
- **I want big profits quickly.**
- **My account is too small to grow slowly.**
- **2% feels too insignificant.**
### Reality Check
- Liquidation happens every day.
- Trading without a stop loss often leads to liquidation.
- Using a large margin (10% or more) greatly increases your risk.
- The desire for quick, big profits is often driven by inexperience and FOMO (Fear of Missing Out).
### What You Can Do Differently
1. **Change Your Trading Mindset**
- Crypto trading isn’t a get-rich-quick scheme. It requires patience and learning.
- Focus on gaining knowledge and skills rather than rushing for profits.
2. **Adopt a Strategic Approach**
- Losing 4 trades in a row at 2% each means you’ll only be down 8%.
- After a loss, analyze what went wrong. Did you rush your entry? Did you buy at the peak instead of waiting?
3. **Consistent Improvement**
- Reflect on your trades to identify mistakes and improve.
- The 2% rule lets you keep trading without major losses.
- Pairing the 2% rule with an effective stop loss will enhance your success rate over time.
By following these guidelines, you can trade more safely and steadily improve your success rate. Happy trading!
