Topic: Please don't liquidated yourself (Read 335 times)

It is better to just avoid leverage altogether, leverage increases your profit but it also increases your risk, and the most successful traders out there have reached that success by keeping their risk as low as they can, now would this conservative attitude towards the markets limit the profits you can obtain? Without a doubt, but it is better to do things this way and take a little bit longer to reach the profits you were looking for, because if you were to use leverage, eventually the losses that you will suffer thanks to it will accumulate, until it becomes impossible for you to recover from them.

Using a low leverage is actually part of what taking risk management in trading is. When you are into a trade and you don’t have enough liquidity, learn how to use low leverage so that you don’t get liquidated quickly. It is better to trade today and still have liquidity to trade the next day again, it makes one become a better trader instead of trading once and getting liquidated because of greed of using high leverage to make more money. Stop loss is an important tool to use while trading, it can help to minimize loss when trading. Neglecting the stop loss function is like gambling with all of your funds which you can get liquidated at anytime even when you don’t see it coming.

If you follow the rules of risk management, you will never be liquidated at all, no matter what leverage you use. And for this, it is very important to use the stop loss function, which most traders ignore, but which is 100% likely to reduce your losses if the price moves in the opposite direction to your expectations.

Beginners shouldn't be using leverage when trading, they shouldn't be trading the future market but the more experience traders can use leveraging as before they get experience, they would had know things like this of not over leveraging but using a lover leverage. What I find fascinating is that many people just want to get rich as fast as possible and since they were told that trading with leverage will give them the kind of money that they're looking for they therefore go into future trading without having any previous idea on how to trade them. They think spot trading and future trading are the same thing therefore they make beginners mistakes like over leveraging and liquidating put of the market. Alot of beginners are losing because of future trading but they don't want to admit it and switch to spot trading that's less risky.

In as much as patience is very necessary in trading, I think risk management is very crucial when it comes to avoiding loses. You can be patient and still liquidate your account if you are not managing your risk properly. I know trading is profitable but sometimes I do wonder if it's necessary for people to jump into it while they're fully aware that they don't have what it takes to be a trader.

To me, I see laverage as a trading tool for greedy people. It's actually a useful tool but only if you know how to use it properly because as much as it can earn you bigger profits is the same way it can magnify your lose. I won't advise someone to trade talk more of using laverage.

The bolded text is the one that I want to highlight because those 2 words are very easy to say, but it's very hard to implement especially for those newbie traders, and including me as well.

Making profits in trading is easy (kind of ironic especially when it comes to me that is a complete failure when it comes to trading). What's hard is having the traits needed for you to become successful. You can have a million dollars in your trading account and still have a chance to lose that amount if you aren't patient enough. You can lose the money if you are greedy enough to not take the profits. TBH, I already think that I can control myself because I did it with gambling, but I realized that it is very different in trading.

Overall, if you don't have the patience in the first place, don't try trading at all, or at least don't go all in on it. You will just get liquidated. If you think that you're greedy, don't trade in the futures because when you are making profits consecutive times, there might be a time when you will put higher leverage on your trades because you're confident enough that you will make money from that trade, but it's the complete opposite. Using lower leverage like the OP said will decrease your risk, but decrease your rewards as well. It's up to you trader if you're patient enough to wait.

This happens often in future trades because futures is so risky and dangerous especially for new traders as futures is a very difficult to do in trading and combine with leverage, leverage will increase rhe risk of a future trade, higher leverage means higher damage in your funds or worst becomr liquidated, This should be a basic knowledge for those traders who wants to trade safely, futures is for traders that has a lot of knowledge and experience in it, it will require a solid and error free analysis, while leverage should be used if you are sure of your trade, and if your account could handle the down trade, whatbis the use of having an accurate trade or sure trade if your funds can't handle a bit downtrade. Be mindful of your trade if you want to succeed in it; avoid those that should be avoided, or else you will experience a great loss.

thats a basic knowledge but we can agree that people are carving for more that is using high leverage to get the best maxed out result of their trading, they don't think about losing due to being liquidated when they set leverage high many of them just thinking of the multiple fold profit that they could be having.
recent flash dump is a clear indication that those that leverages too high getting liquidated and it amounts to millions, a really bad way to lost money when in bullrun supposedly if they tune down that leverage lower they'd be spared still and right now are back on the track to profit again but too many are so strong willed to be a millionaire overnight.
can't blame them though sometime the profit that we can bring home with such high leverage is simply too attracting for most of us.

Futures trade is usually liquidated because people lack some strategy. I was involved in futures trades for a few months where I had more losses than gains only keeping leverage between 8%-11%, and I suffered massive losses from there. So generally if I put it in the lower 5% to 3% percentile, that would work best. I have usually faced huge losses here usually due to not using this strategy so those of you like me who are involved in futures trading should definitely use this strategy. And be patient in the market will surely succeed and reap the benefits.

Leverage can be a powerful tool, but just like any tool, if you know how to use it then it can help you greatly, but if you do not know it then it can affect you just as greatly as well, the issue is that the majority of the traders that want to use do so because they have a small capital, they want to obtain profits in a very short period of time and they do not have the experience necessary to understand what they are doing, so it is not surprising almost all of them get eventually liquidated.

Those that endup using leverages recklessly are mostly those with the mindset of getting rich quick , they are already aware that whenever one make use of huge leverages he or she would endup making huge Profits, forgotten that the higher the leverage the higher the risk. And that where most time their greed normally kick off, are these are things one should be concerned of when Trading, having a good principles towards your trading. So always try to mind the kind of leverage your making use of or is better to not make use of it all  just as @mk4 implied, than to endup losing all your funds due to reckless use of leverage.

One of the pitfalls of trading is that high leverage can lead to losses.Leverage must be controlled.Avoid doing multiple trades.If you buy a coin at a high price and after a few days its price drops, you will face a loss if you sell it immediately because you cannot control your leverage.But if you can control the leverage and wait for a long time, your loss will be less if the price of the ear rises again.Greed should always be everything when it comes to trading.Because more greed always leads to launch in trading.By controlling leverage you will be able to control your liquidity.

With the current market fluctuations, what is the benefit of using leverage that may increase risks while profits are guaranteed? Greed leads you to use 3x leverage or even 10x leverage. It is better to be patient and do spot trading, especially since we are in a rising market. The leverage was It is always used in the Forex markets to enhance profits, as its percentage was very limited.

2x is like close to the safest haven but still spot is the best so that there won't be any liquidation that will happen to you. But I'd agree to mk4 that if you can't take the heat, much better to just not do any leverage at all. Well, I am impressed with those traders that don't have much experience by they set 10x and even more than that. The guts and bravery is there but once they are away and the market slips away, they'd just receive a notification that they can't do anything anymore because they're already liquidated.

I agree with mk4.

First of all, regular trading should be practiced a lot and when regular trading is mastered and you feel you are doing very well. than regular trading then you should choose another option. You will not be able to do very well in futures trading or any other. leveraged trading if regular training does not allow you to master the skills.

Or better yet — probably don't use leverage at all. Most people are very incapable of using leverage correctly so they're better off not using it. Practice trading spot first until you can consistently make money, then use more difficult tools like leverage.

Even if you lose low leverage you can still have huge loses with leverage. Right now it’s extremely expensive to long with the perp swaps. You are looking at 70% APR. So even if you use 5x leverage the amount you are paying daily will be 5x that amount. So you are losing 350% APR.

Sure you won’t hold it for a year but if you hold it for 2 weeks or 1 month and price trades sideways, you will lose tons from paying the funding fee alone. Hence when markets are volatile it’s best not to use any leverage at all.

Some uses higher leverage to maximize potential profits and thats where you should take caution cause the reversal also could happened. The higher the leverage the closer liquidation too so its much better to put a leverage you are quite confident with and thats where your experience on market conditions.

Recently I have been seeing traders using x50 to x500 to trade and what they normally see as outcome are loses.
We don't need to be greedy because this is one of the reasons why we keep seeing loses and getting liquidated because of the market volatile movement. It is good when we good a reasonable leverage to earn more nit trying to gain more profits over the market which is a big sign of greed and we must try hard to stop it.

If you are not confident about trading, then you should not be using leverage in the first place, not only to avoid you from consistent losses, but also to limit yourself from getting liquidated. You can trade without doing leverage, and still end up making decent profits.

Majority of the successful traders are still not practicing trading with leverage. Just trade with patience and control your emotions, you can still get your desired profits in the market if you keep your patience up by not resorting into jumping for quick and bigger profits.

This example that you give in your post is almost close to reality, which means that it is possible if you agree with what you are saying, but I don't leverage that because I know that the risk level is very high.

So if anyone is going to make or use that leverage, it should only be at x2, so that it is at least safe and the risk you will face there is low. Because for me, when it's at x3 and above, it's almost closed to losing; that's what I see.

You are completely correct, 💪. Risk management is the trading industry's superhero. It is not a one-size-fits-all method; each trader's approach differs depending on their knowledge, risk tolerance, and their financial goals. The secret is to establish your risk level and strategy size, then set your stop loss and leverage accordingly. Don't forget about diversification—spreading your money across many different investments and methods of trading can help minimize risk. Swing trading with Bitcoin may be too risky for some traders, but if you're knowledgeable about trading technical analysis and have a sound risk management system in place, you can try it.

I don't do leverage trading now but I don't think that's how lower your liquidation price became when you chose 3x leverage, I am not trying to correct you instead a little confuse because I traded in the future a long time ago and now the numbers are little blurry. But hey let's consider the liquidation price for the sake of the context of your topic.

And on this, I can't agree more with you, because when I used to do future trading, I did know at the start that I should trade with lower leverage, but at lower leverage, you obviously make a lesser profit, so when you start to make some profit at lower leverage you start to think that now is the time to increase the leverage for like up to 10x. And that's where we make mistakes.

I also make the same mistake, I thought that I can judge the market now, and I know if it will move up or down so I should take entry, now is the best time but why should I not try 10x leverage instead of 2x or 3x. And boom here goes the whole future portfolio.

What you said is actually not far from the truth, high leverage is high risk high reward, but many only look at the reward position forgetting about the risk involved. Your example though isn’t clear but will tell you that risk management is the one thing some traders lack that makes them to get liquidated. Make sure your position size is large enough to cover for the trade. Many people that get liquidated hardly set stop losses and some that set do not look at the price they will lose when the stop lost should hit.

What you provided in the post about bitcoin is like a swing trading which I wouldn’t advise a small trader to go into. Better still calculate your risk to reward and then divide the percentage with how much you can afford to lose and set your stop lose with that amount. Do not just go and set stop Loss like that you can get liquidated even before it hits. Divide your account position in such a way that even if you hit 10 stop loss you wouldn’t get liquidated or better still stick to isolate margin if you can control that

All trader should take note that you can't get liquidated if you use your leverage wisely, almost 90% or more of traders that got liquidated is as a result of high leverage, ok lets take btc as an example now, if you enter a long position from $45000 with a 3x leverage, Bitcoin would have to fall down to $17000 or $16000 for you to get liquidated, so as long as you are patience enough in the market while using lower leverage, you stand a chance of making good money out of the market, so please use your leverage wisely to overcome the troubles of the market.