Topic: $9 Billion worth trades got liquidated in last 24 hours. (Read 784 times)

Yup! I remember very well because I kind of got tricked by it myself, believing the statistics and the macho talk,,, and then finding out later after wasting my time following them more closely that they are actually just as bad as me with no stop loss and confidence that died as soon as winter came. But I guess we all have to learn our lessons in the hard way to really learn them:)

Nowadays I want to make profit from leverage trading, this is more risky than spot trading, because possible to get margin call. I did try on demo account of MT4 platform. Then I want to try first by small amount like $200. I think the most important thing in leverage trading is avoid use high leverage and take risk only 1% of balance per trade. The purpose of trading leverage is make consistently profit from Open Potition from Long and Short although we can make profit only 20%  monthly. Greedy is big enemy in leverage trading.

Margin trading and future trading is too much risky. A stop loss for every trade is must and in a market fluctuation like this, it is best to not trade and leave trading for sometime. If you have alts and your positions is at loss then hold them for sometime.

Losing your money is much easier than making a profit. I managed to partially leave the market, but still my spot position looks sad. Usually at such moments, I decide that a stop loss should be set not only for margin trading, but also for spot trading. I hope I will stick to this rule in the future.

so the importance of using stop loss is this, to keep it away from liquidation,
it is very unfortunate if your money is liquidated in futures trading, because futures trading is high volatility.
I have played there and got liquid $400 in a day, imagine that is the result of my trading for one week and lost with one trade

That's true, veterans did use it but there were at least a few of them that made money so I didn't want to include that, the real true veterans who know what they are doing could use leverage and they could make profit or maybe lose money but at least they know what they are doing. Compare that to newbies all of which have no idea what they are doing then you know how horrible the situation is for the bottom of the trader list.

I personally never used leverage trading in my entire life and I have been around for over 8 years now, think about how long of a time that is, I have been around for over 80 percent of entire bitcoin history and I have never used leverage because I just do not trust myself enough and that type of awareness should be available to everyone but they just ignore that and go for the richess over night and that is why they lose.

It's quite understandable why newbies would want to go for leverages as opposed to going for the normal spot trading that is recommended for newbies and beginners akin. During the early days when I first started trading, futures trading wasn't a thing in crypto so I had to focus on the hard way to make trades in order to get a tangible profit. These days, it's not like that. Considering how easy it is to get carried away by those profit screenshots from Binance and Kucoin, I'm not very surprised that most people who just started their crypto journey are eager to trade futures even with little to no trading experience.

Yeah, i clearly remember this one out and surprisingly into those times on where there are people whom do really believe that those people could actually able to pull it off but honestly those are just show offs and trying to pretend that they are that actually good.

Leverage is suicide if people do really just know but there are still people whom do really love to play with fire and specially newbies do really get
attracted the most.

They would cry later on when they had already burned out their money.

Or even non noobs,,, veterans who only ran their months during rallies like in 2017 and who thought they were invincible. Start even opening trading groups and charging premiums only to discover during the crypto winter they cannot actually scalp even with extra volatility.

Leverage is the quickest way to find out the posers in my opinion;)

If you know what you are doing you will be capable of doing exactly that, you would be putting in stop loss and you would be basically making sure that you do not lose all of your money and get liquidated, that is a very important part of leverage trading (also normal trading too).

However there are noobs who do not know how things work properly and why do you think they still trade? Because they see that others get super rich with leverage and they all dream about getting rich the same way. Last year there was a guy who started trading with like 70k dollars and turned that into 1 million dollars in less than 6 months or so using leverages, he just kept buying longs and that's it. Which is why I think it is quite obvious that we need to make sure people realize that these moves are dangerous for noobs, but not like every veteran has to say that, so we need to collectively let people know when they first come in.

Also what beginners hardly realize is almost nobody checks for leveraged trading records. I have seen them and they are extemely tight. Very low percent of capital,,, many many trades but also very close stop losses, and very moderate takes on profit exit. People make a lot of mistakes to ride out their gains by a lot and then suddenly a few non-stoploss trades can completely wipe you out.

They are aware of the market and they know the risk of futures trading, it just happened that the price of Bitcoin that time suddenly crash within a day and Billions of money got liquidated instantly because some traders didn't sell right before the market crash. The price of Bitcoin is unpredictable, especially if it's being manipulated by the whales, I hope if you are one of those who got liquidated learned the lesson, always monitor your risk and don't hesitate to sell even at a small loss.

in each trend there will alot liquidation that will happen, some people make right position with trend but some of them againts this trend and finally liquidated. market volatility really dangerous if we could not identify the trend , our money will gone due of this reason.

Yes, indeed, liquidations occur every day and in the case of increased volatility, these amounts amount to billions of dollars. In the last few days, when the price of bitcoin began to increase, the positions of those who continue to believe that the market has changed to a bearish one are being liquidated.

What you are doing is correct, by not trying to use leverage tools that have a very big risk. Especially for people who don't have good knowledge
and skills about trading, we should not dare to try trading using leverage. What we can lose is the capital we have, I agree that only experts
and experienced in the world of trading are advised to trade using leverage.

You guys are right. Margin liquidation has become quite common in past few weeks. Even I have lost more than 75% of my money in my futures account.
Although I had just deposited around $250 in futures account it still shows how not using proper stop loss and high leverage can result in high losses.
I have currently taken a break from trading until the market trend changes.
Right now I believe the market is going sideways and so it's better of not to trade at all and wait for the new trend to begin.

That's the risk of margin trading, you don't control that much the result of trading and anything can happen in just instant. The market is very volatile, there's always a risk so invest only if you can afford to lose that money. There's a lot of sad stories from the previous liquidation, if you don't want that to happen to you, just make sure to take only the risk based on your risk appetite, and don't be greedy.

The volatility of the market in recent periods is very unpredictable, inexperienced investors will fall into a state of panic when the market goes down and when it pumbs they regret not buying more so. My advice to investors at this stage is to wait for more stable signals of BTC.

Given the high volatility of the cryptocurrency market, it is not surprising that every day a large number of traders who have margin positions receive the liquidation of their orders. On the last rise of BTC, there were about 1 billion liquidations already for those who opened their orders in short.

Correct, what I said only applies if the trader goes all in with his capital and does not use a stop loss, obviously doing such a thing will be irresponsible but this is common for newbies that do not know what they are doing.

It is because of this that leverage trading is indicated only for expert traders, traders that have been in the market for a few years and have demonstrated to themselves their strategies work and now they are looking to maximize their profits while keeping their risk under control.

Correct, the market is only composed of seller and buyers which whom do try on making profits in the market.There would be ones who do make money and there would be ones who do lose up and repeating the same process and its a bit normal to see up these kind of whining in public
when they do lose up money into their trades but actually this is really just normal and this is why we should really be focused in terms of
risk management.You should do your best on to sustain yourself in the market and set out approriate stop loss levels.

Who cares actually, while there are people who are making big money in crypto, there are also people who are losing, so it's just a normal scenario as every one of us is betting on a different outcome, it's a game in short. $9 Billion maybe too big for bitcoin's daily volume, but that's how it is, it's the game and we know the risk. For sure these people also made a lot of money when bitcoin was so bullish, so it's payback time as you'll not win all the time.

For those who had just recently jumped in trading are the ones who do really fall into the impression that making profits is just way too easy with
trading specially with leverage which is actually true but if we do really tend to know the real deal then its really high risk.

People cant know those things first or initially until they do experience about losing investment or money.Way too high which majority cant
able to handle the risk.Although potential earnings is indeed high.

Better starts with spot trading rather than going with leverage or future which this would be less riskier.

Leverage trading is risky enough that professional/experienced traders don't recommend it. I tried leverage trading before and I got liquidated so many times until I gave up. The risk is just too high despite the potential earnings you can get for just a few hours of trading. I gave up leverage trading and just continue spot trading and yes I am not regretting that decision, I realized that I am much better in spot than risking so much on leverage trading. It's just frustrating to see newbie traders who are introduced to leverage trading first before spot trading, I'm pretty sure that the majority of them are on lose before stopping.

How can leverage trading go and why do you even expect it to go? Even guns can be used both to fight enemies as well as for creating anarchy. But this doesn't mean guns need to stop altogether. I think it's about your own risk aversion. People should be aware of the risk of leverage trading and they should only enter these positions if they are willing to take this much risk. I like how Binane gives you a video tutorial when you want to start leverage trading and even asks you for a quiz to make sure you know what you are stepping into. This might hurt their volumes a lot because a lot many people might read it and might decide to stay away from it. Despite this, they have kept that mandatory quiz before you begin futures.

In short, if you're not careful, you'll be liquidated that easily.

That's why I don't do leverage, I'll better not trade at all and just hold rather than putting myself into a situation that I cannot handle through leverage.

trading with leverage must be more careful, because if we are wrong in the strategy and can't control emotions then a margin call awaits. therefore discipline in short-term trading is needed here. Of course, money management must also be strict so that our capital remains protected

I believe that Pumps and dumps schemes could be probably more possible in mid-market caps - low market caps. But most of the pairs that got futures these days are high market caps, so I believe that it's difficult to do pumps and dumps on these high market cap pairs.

There is a lot of reason because of this huge liquidation, yes we can include number 1 for sure those high leverage traders, short squeeze/long squeeze, etc.

P.S. For those who are asking about where we can see such liquidation data, you can visit Bybt: https://www.bybt.com/

Leverage will stay and it won't be gone.

It's one of the big markets that the exchanges have added and it's not always about the liquidation of traders there. I knew traders that are making well there and it's about the discipline that they have and they're enjoying it.

Because they know how to trade there properly with the right attitude.

Generally in very volatile markets, one should always use Market Stop losses. They might hurt you a bit in terms of slippage but will definitely get hit. Also a 50% drop to be very true is something that comes just once or twice in the whole life of any asset. Such a huge fall generally takes place due to huge leverage positions only as the Whales try to manipulate markets. It's wise to never trade in futures until you understand the market completely. Also averaging as mentioned by Ratimov is an excellent technique too. I myself used this technique in the recent dump only. You should always keep a buy order right above your liquidation point if you see your liquidation getting hit due to a huge crash.

Leverage is most of the time the reason why many traders lose all their money, the crash we saw in the market was important but nothing that was out of this world for those that have been here long enough.

However even something as small as 2x leverage would be enough to wipe out your capital with a 50% drop, anything higher than that and you are risking your whole capital in a single trade and since sometimes stop loss orders do not get executed immediately then you could lose way more money than what you wanted in that trade, so while I am sorry for those people at the same time they deserve to lose their capital as they were irresponsible with it.

Yeah, we all know that this will just keep happening one time after the other because that is how the market works. There are trades with leverages and there are trades with lending, so eventually they will get liquidated and that is going to impact us a lot in the future as well. However market should take that into consideration when they are doing all of this and that will end up with not being that bad at all, it is going to be decent.

I would love to see leverage trading go, but it is not going away, so at least lets learn to live with them, do not overreact when they are liquidated and all their money turn to dollars causing bitcoin to fall, just see that as cheaper price money and then move on with that. I personally love to just ignore it and move on with my life, have been doing that since the price dump started and I just collected more.

It is an opportunity to buy.

People look only to the downside and plummeting of bitcoin. But they do not understand that it's an opportunity that they shouldn't miss.

While we discuss, they are waiting for a reversal and it's the time that they will start buying.

In fact many businesses are canceled for pump dumps in the market but don't be discouraged if you invest in crypto. Everyone invests to make a profit but cancels the business when the market starts to go down I think it's the right time to invest if the price goes down without canceling the business this is a double occurrence in the crypto market where a small group of players often circulates large amounts of currency. That means only one person has to give up all their holdings to keep the whole market in the tank.

in the current situation, I think the decreasing price of bitcoin can certainly be an opportunity for us to start buying bitcoin. the decline could happen again, and we buy back, so we will get every support area to buy in order to minimize risk, Seeing realistically the market will be better than us being obsessed with getting a lot of profit in the near future

You just have to avoid greed and stay in a zone you'll comfortable losing your capital and not go mad about it. I understand people say not to be too comfortable with the zone you're in but that shouldn't be misunderstood as driving into sector you have no idea about just because you don't want to stay in your supposed comfort zone is very deadly in the cryptocurency space.

Future trading is quite tricky and only those that have the experience should be advice to engage with cautious still as anything is possible. A simple manipulation form the whales can wipe out your whole capital.

I see no reason why newbie pick interest in leveraging when they haven't mastered the spot market to a convincing level.

Suddenly dump and pump make many people get liquid every day, I see bitcoin dump more than 30% every time and make liquid price close for many investor try to get long position, maybe waiting long when bitcoin have been lower price and early after weekend is the best  for entry to get long position.

doing shorting is good mate on this current situation but it needs more efforts and time to prevent losses because its became so volatile and very unpredictable.. Maybe its because market is really struggling right now to make good improvement but despite its actually still showing some pump that really can give us quick profits or should i say to regain gradually some of our lost during the crash.

the market benefited at first because there are people that try to bought btc to avail of the offer but not anymore because they tesla discontinued the offer and tesla had liquitdated most of thier btc ,
 this include thier own btc investment and the btc that they accumulated on their tesla car sales but interested buyers can still purchase via traditional transaction .
dips are normal and i expect this but i also expect that elon will manipulate btc  .

Have you ever seen information that someone took advantage of Elon Musk's offer and bought a Tesla for BTC? Since Musk is the owner of Tesla, then this statement of Musk was calculated primarily for the hype of Tesla, that it will use an innovative form of payment. Therefore, the termination of the acceptance of BTC as a means of payment for Tesla could not lead to such a dump.

If people can realize about stop-loss, they will minimize the loss in trading. But most people, especially new people, do not know about that and make them losing after the trade for a while.

If people think that the price could not go below, they will regret it because after what happened to the market, they see that the price is down, even the price drops too deep than what they thought. If they can prepare before this happened, I think they will be okay and not panic and they will have the time to decide.

Yes, thank you for the article, that is a good article. But speaking about forex, I think that will be more risky than crypto, but I do not know for sure because I do not involve in forex before.

It is not that easy task to predict how deep the market would crash at a particular time period and putting a stop loss in this market is the riskiest option and i never tried that, i usually make sure that i wont be making any stupid decisions simply because the market is going down and for the past few weeks the market is really volatile and anyone placing any stop loss measures will liquidate your assets in the blink of an eye and then recover after a few hours and these are familiar situation anyone who are trading in the market for a long time would know and hence these are not big surprises.

This on where people do really realized on whats  the importance of stop-loss and even how deep you do set out your SL if the market tends to crash or correct -40% then for sure billions would be liquidated

and this is something thats new into this market.. Lots had been anticipating that the price couldnt go below more into those percentage without even realizing or looking up on the past on what
are the ranges in between possible volatility which it should really be always in consideration.

This might be talking about forex but this is actually helpful to be read on: https://forexop.com/trading/margin-calls-and-how-to-protect-yourself/

Yeah it's true what you are saying but I believe at the end of the day it was hard-earned money of many people and they might have been out of this devastating crash if they knew some very basic rules of the market. The Crypto market isn't very mature so far therefore such manipulations become even easier with most of the investors always being worried about bitcoin being a bubble. I think most of the buying was obviously by the whales had their orders at that point, you might say money just changed hands from dumb people to the big guns but this is what makes market even more painful for retail investors.

Do you mean to say that Bitcoin fell much more with the news of TESLA not accepting it than it had risen back when TEsla purchased it? Because as I remember when Tesla purchased it price bounced from almost $39k to $46 reaching a new all-time high immediately but the fall was of 20k points? Doesn't seems too realistic to me.

They got rekt because lack of knowledge in leveraging and some other tools that can affect our trading activity like margin and more something like that. And one more thing, we are in the trading business where up and down only is the only movement happen in the market. In short, not all the time the price increase and decrease depending in the whale manipulators of course.

After seeing the bitcoin price jumps down a lot and losing some money in trading for a while, I stop trading for a while. I also stop using futures in Binance because it is hard to keep trading in that conditions. Now, I only watch the market moves but if I see the price is down deeper, I buy that coin for some amounts and hold it. I am trying to buy low and sell high and make a profit of 1% daily. It is not big, but I can do it many times to profit less than 1%, so the result is still good for me. That is a profit than nothing.

Whatever happened a few days ago seems to be happening again now with BTC around 39K-40K so I can only expect to see what I've seen before. That is the market dropping back down to around 30K.

To me, this is no time for buying in, unless you're thinking long-term that is.

This occurred mainly because of the recent btc dump as a result of Elon musk news that tesla will no longer accept bitcoin as a means of payment.Many people did not expect that to happen in the market hence the reason behind the liquidations.Dips like this happened from time to time so stop loss is important to avoid cases like this.

It is not horrific story at all. It is the way it is mate! This is the game of money exchange in the process you loose or you make more money. It's the competition who buys at dip and sell at high and weak hands who buy it ATH.

This market won't survive if there is no such dips and ups. Obviously those 8 billion which were liquidated must be from the profits bookers, losers, panic sellers and what not.

 If the orders were executed then it does mean someone was buying at that point too. That is how it works and that's what give liquidity to the market.

I too think the reason of dumping with such amount at that time was because the rugpulls group or anything related to that decide to somewhat dump their coins
if it's an institution that does that, they definitely gonna be concerned with market depth but it seems the dumpers isn't concerned about that at all
Instead it looks like a haste movement to get out of the market liquditing their asset as soon as possible, what's the chance of people just decide to say "f**k" it and dumped it altogether?
Slim I guess, unless such a guy don't care if their money got bitten by their own dumping.

It is indeed profitable if you manage to set-up a good entry point, but if you are still not familiar with future it can be more risky.
The market crash faster than expected and that's the reason why many was not able to sell early, and got trap especially when the platform that they are using is crashing as well. Spot trading are more reliable on a bear trend, the recent bounce can still be risky.

that's the market, anything can happen, especially in the crrypto market where whales have an important role in it. therefore we must be able to take advantage of opportunities well, because it could happen that prices will suddenly rise or even vice versa. as long as we can follow the flow, then we can survive in the market

Unfortunately, the fall in prices once again brought disappointment to the crypto community, as many believed that there would not be such a deep correction now, but this fall should indeed once again show that everything can be on the crypto market, like a big rise or a fall. Based on this, one should always assume such development scenarios. I remember the fall in crypto prices at the beginning of 2018, then I was confused and it seemed the end had come, but now I already understand that this fall should have been and after that there will definitely be an increase in crypto prices. Therefore, the fall this time is an opportunity to buy a top cryptocurrency at a low price.

Putting a stop loss sometimes are not working because of us making different decisions every time the price would nearly hit our stop loss because we are thinking that our stop loss would be gone to waste if it's been hit and the price of the market would go up instantly after it hits your stop loss price, that's why we always end up losing more because of greed on making more profits.

Sometimes losing a small trade is profitable than fighting the trend and insisting that it would pump up again if you're gonna resist what's happening.

This crash liquidate many long position trader. I always use spot.

Such a large number of liquidations is due to the fact that many traders believed in the continuation of the bull run and no longer believed that bitcoin could be corrected at such a low level. And as a result, more short positions are being opened on the market now, and this can serve as an impetus for the growth of the market.

Trading actually is quite good specially if you know what you are doing but if you think you can't do better in trading no matter what you do. It's fine to stop and move on to proceed to your next target like investing but you should also know the risk of investment and try to minimize it since every money that's involve there's always a risk of losing.

It's just that Elon Musk suddenly post a tweet that devastated almost all of the crypto market.
It seems like people are fund of supporting billionaire and tend to follow what they tell to the world.

This is why I decided to stop trading totally and just focus on investing and holding for profit, let me know lie, news like this are one of the reasons why I stopped trading, and my other reason is that I've been burned, big time, I traded Ethereum on a leverage of 100x, I don't need to say it but yes, I lost everything, and that thought me a very big lesson, ever since this incident, anything trading on leverage scares me, even at 5x, and the truth is that trading without leverage does not bring much profit so I just decided to leave trading and focus on investing and so far, am much more comfortable and I got peace of mind.

Future trading is not suitable for everyone, apart from a very high risk. Future trading also requires good analytical skills, as well as trading experience.
If we don't have these two things, we should avoid future trading, especially when the current market is bad, It is strictly not recommended to make
profit through futures trading. I even for the past few weeks have only secured the capital I have for trading on stablecoins, so as not to be influenced
by a highly volatile market. When the market recovers, then I will start trading again.

Its our safe heaven from the dump especially on what happening today, I already secured my funds since the heavy dump seems pretty strong and I don't want to join the hodl party sincr its very frustrating to see the market dumping badly.

I know USDT is being criticize but as long as it serves its purpose well I will go here temporarily and once the fear ease up and market slowly recovers I will go back to the alts I support.

There's another thread that's very sad that can be connected to the liquidation of this huge amount in the market.

--> https://bitcointalksearch.org/topic/trader-took-his-own-life-after-the-recent-huge-dump-5338723

Stable coins were the best invention actually. Even though USDT was and still is criticized a lot for its lack of transparency and how enough dollars are not there to back it but despite that, I have seen its value has been consistently kept stable by the developers. I still find it much safer and accurate to dollar than BUSD, DAI, PAX or USDC even though they might be more advanced and more secure than USDT. I still remember those old days of 2016-17 when all you could see was the BTC trading pairs there was no way to buy alts using stablecoins but Binance slowly changed the fashion.

Spot trading is really helpful especially if you want to control what's going on with your funds, but you need your time on this. I hope those who lost in this trading will learn their lessons and be more prepared next time around. No one can help you in this market but yourself.


This is actually where stablecoin is useful. But you need to be careful also which stable coin you will buy. Better choose the known and popular ones.

That’s the risk of futures trade and I’m confident that those who are doing this knows about the risk of losing money instantly, its very unfortunate to those who didn’t monitor the market and got liquidated when they wake up. This is why I always trade on spot only so I can lessen the risk and I control my every decision, trading is very risky already those who want to earn more must be ready for every possibility especially on losing money.

It’s scary to even imagine how many broken lives in one day

I used to avoid leveraging as it's not my thing. Spot is the best and a comfort for me.

That's a good initial thought that there's a chance that it is really is. But due to the volatility, we can really expect an unnatural dip like this to come and the same goes for a rise.

I think 10x Leverage people cannot even sustain a move of 3-4k$ forget about $9k. Even those who took leverage as low as 4x would have been liquidated on many exchanges. But yeah one should even expect the most unrealistic dumps when trading in futures as the market is too much manipulative in bitcoin. For once when Binance crashed I was sort of happy that at least people won't be able to sell more of their bitcoins. But soon I realized that even the buy inflow won't step in if we don't open Binance .
I saw hthis very interesting formation. People are calling it Wyckoff distribution. This can be a good reference point to the current BTC scenario but this would have been more realistic in the previous wave. This time we all know that BTC always has the habit of coming back strong. Moreover, I even remember people who compared this with the dot com bubble and the tulip bubble in the previous wave unfortunately all of them have wiped out now. So It's still hard to believe this chart.

At least when the market was green future traders who trade with leverage always smile after earning large profits so I don't see any reason for complain now that market is red I expected them to have taken risk into consideration in their trading, it was very unfortunate that a whopping $9 billion dollars was liquidated, to cut my losses I always exchange my Bitcoin to a stable coin to avoid this massive dumping of the price, indeed a trying time for cryptocurrencies investors.

Actually, the problem with these types of volatility is that wannabe traders can become very lucky profit takers, thus seeing themselves as professional traders.

Pro traders probably lost a bit of money in this period if their stop losses all triggered, and if they bought the dip on some charts, based on last week, they would probably stop loss again.

Most people who do these type of high leverages are not really spending money they can't afford to lose, at least "most" of them, some of them might be doing it for sure. I just feel like if you are going to lose everything you have, that is not a good trade and I wouldn't do that. However even with that fact, unfortunately there are some people who go all in on some high leverages on any side, and when it goes to other side they end up losing everything. If you are going to do leverage, each trade should be under 5% of what you own, which will make sure that the worst that happens will be you losing 5% of your money.

There are some that do not follow that strategy because 5% of what you own will not bring you 100x profit in a few hours, they want crazy risk with crazy profit potential and that is why they end up with losing all of their money.

Bitcoin back into $40K region even $42K on most exchanges which shows that manipulation by anyone is not going to sustain longer if there is actual support for the cryptos, I saw that huge anti crypto investment all over the internet due to the crash made after the Elon Musk tweets, but once again Bitcoin proved all of them as wrong.

I like this. It's the real deal. Those who cannot embrace that truth will surely just walk away in an instant.
Experience and research is very much critical here. If you had been there during the wild movements of Bitcoin then this won't even shock you. If you also read about the history of Bitcoin price movement then you know it will come sooner or later.
The market crashed but it doesn't mean it will stay that way forever. Some may say they could have sold at a higher price and could have been enjoying their profits, but no worries another chance will come.

Shorting is the least expected because people have been expecting that bitcoin is going to go up after a really hard dip in the prices and you are right that people are losing money, a friend of mine shared a story about someone who committed suicide because his life savings got wiped out because of leverage.

It was one of the days that separate the 3 groups: professional traders, trader wannabes and lucky profit takers.
Probably the trader wannabes went through hell.
The professional traders had a rather bad days, but they'll recover.
The lucky ones bought the dip and maybe also sold already.

The good thing is that all those positions liquidated will have to be bought back by those who want to continue trading.



I was worried for 1-2h while it has fallen to 30k and until it has recovered to 36-38k. And now we're back inside the expected range.
However, the fall in the hash rate still bothers me.

Pretty solid explanation and this is what I really expecting to happened. It just happened earlier than what I expect. It seems that institutional investors are having a joint activity to manipulate the market by spreading FUD when the price is high and announcing they acquire additional holdings when the price is down after the FUD. The price already reach the point where the wall at 60k cannot be destroyed due to low fresh money coming in to boost the price higher.

Stop loss orders can not help you yesterday. The market crashes and stop loss orders might be missed. Cascade effects will be triggered in crashes. Many big exchanges were down for a while and their bad operations only make the crashes worse.

Alternative for stop loss order is Stop limit order. It help you to have a range between the triggering price and a price you will cut loss. You are free to set that difference but the trigger price should be a strong support price. If it is broken, your stop limit orders will be activated.

Types of order

The pain has been experienced by many involved in the space.

It just seems like RUG PULL from institutions and market manipulator groups. There is no way this type of dump is natural. The dips and peaks look too manipulative.

Let me share with you a very interesting outlook ... (for the full explanation on this, watch this video https://www.youtube.com/watch?v=Lhf_2gJJS1I&ab_channel=uncomplication)

Thoughts?

That's right. Majority of the people who got rekt today are the leverage and futures traders because those on spot are just down between 40 - 50 %. On a 10x leverage, that's like 500% down and I know a lot of people who use 20x leverage which is too high, hence the large number of liquidations. Two of my orders got margin called and liquidated but these were just small amounts I put in after yesterday's dip to test the market if that was time to start buying the dip but I was wrong. Today's dump has so many lessons like:

• taking profits from time to time
• Having a better risk management plan that covers situations like this.
• Not overleveraging.

So many winning trades turned to losing trades today.


That's the thing. As humans, we're always expecting prices to go up and not down. Majority of the trades I've met are long traders. It's only a small subset of them that open short positions but only on fewer occasions.

A lot of people lost money. It is what it is we all know the risks when we go for margin trading. Shorting would have been a god option in last couple of days but that is kinda agains human nature.

The most horrific story of the day. A total of 8 Billion Dollar market got liquidated today in just the last 12 hours due to the violent bitcoin crash from 42k to 30k(even 29k or 28k in a few exchanges). But the most important thing that we should learn from today's crash is the nature of unpredictability that market has. People generally go in with high leverages and end up getting liquidated at very wrong points. Even if they aspire for a correction market sometimes fall so vigorously that they aren't even able to get out at the correct point. Some might say it's manipulation some might say it's Elon behind it. But the truth is no matter whoever is behind this, if you want to stay in the market, obey the market otherwise just walk out. So here are the two things you can do to avoid such crashes especially for leverage traders:

1. Use a tight stop loss: This is by far the most important advice and something you should have heard a lot of times. Never long/short from a point where stop loss can be so low that you won't be able to handle it. Don't be frightened with the small loss if you exit on stop loss you might get a very good chance to buy much below.

2. Never Overleverage yourself: I generally consider anything above 5x especially in altcoins as overleveraging. Do this only if you are very very sure of the support or you sure that your stop loss is too tight. Also, the margin in only a certain percentage of your capital so that you can save the trade by buying again slightly above the liquidation point thereby dollar-cost averaging your price thereby lowering the liquidation price.