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Getting liquidated while trading contracts with the "big shot"? The problem lies here!
1. The leverage is too high, and the volatility will Get Liquidated.
Newcomers always want to "double their money in one go," opening 50x or 100x leverage with their entire position, and get liquidated directly when the market fluctuates by 1%-2%.
① Data reference: 5x leverage allows for a 20% fluctuation (Get Liquidated probability is low), while 100x leverage only allows for a 1% fluctuation (Get Liquidated probability is extremely high).
② Suggestion: Beginners should use 3-5x leverage to ensure survival first.
2, Do not stop loss, hold on until it goes to zero
Common mindset: "I'll wait a bit longer for it to rise" "I've lost too much to cut losses", resulting in a loss of 100% from a 50% loss.
Correct Operation:
① Set a fixed stop loss of 3%-5% when opening a position.
② Move the stop-loss line up after making a profit to lock in gains.
3. Go all in, a single bet determines life or death.
Beginners often go "All in" and gamble, and when the market reverses, they get liquidated.
Suggestion: Do not exceed 5% of total funds for each position, diversify trading.
4. Emotional trading, chasing highs and cutting losses
80% Get Liquidated is due to loss of control over emotions:
① Chasing long positions when seeing a surge (buying at high points), and cutting losses when there is a drop (selling at low points).
② Suggestion: Make a plan in advance and execute it to avoid staying up late watching the market, which could interfere with judgment.
5. Not understanding the platform's tricks, being "set up".
Exchanges may cause Get Liquidated through "spike" (instant price surges or drops triggering stop-loss) and "slippage" (execution price deviating from expectations).
Advice: Choose mainstream platforms and avoid trading during extreme market conditions (such as when the Federal Reserve announces interest rates).
$BTC