LESSON OF THE DAY ✍️
POOR RISK MANAGEMENT 📉📈
Last time I gave out a signal in my private group, I monitored it closely because of a pullback. Thankfully, it reversed and didn’t hit our stop loss.
But guess what?
One of my students got liquidated before price even reached our stop loss zone. I asked how?
👉 Poor Risk Management.
Her liquidation price was higher than our stop loss — all because of high leverage.
---
⚠️ LEVERAGE ≠ POWER without CONTROL
The higher your leverage, the closer your liquidation point is. That means:
If trade moves in your favor → big profits ✅
If it goes against you → faster liquidation ❌
Always check that your liquidation price is far below your stop loss.
If it’s not, you might be liquidated before your stop loss is even triggered.
---
🔁 Example
If a coin is trading at $10, and your:
TP is set anywhere realistic (e.g., $12)
SL is at $8
But you're on 30x leverage with only $100 margin, your liquidation could be at $9.
So even before the trade drops to $8 (your SL), you get wiped out at $9.
Then you’ll think “trading is not for me.”
No — you’re the weapon fashioned against yourself through bad risk control.
---
🚫 Other Signs of Poor Risk Management:
Using wide stop loss on a small account
Copying Idolo’s stop loss/leverage without matching their margin size
Holding onto losing trades
Overtrading and revenge trading
Setting unrealistic take profits
Taking multiple trades daily chasing recovery
Risking too much just to hit a daily target
---
✅ Proper Risk Management Tips:
Use a calculated stop loss, not emotional ones
Focus on capital protection, not just profits
Understand Zero Liquidation Strategy (I’ll explain this in the next class)
Always know:
🔹 How much you’re risking
🔹 How much you’re aiming to gain
🔹 How much you can afford to lose
Trading is for you — just don’t sabotage yourself.
