8 Life and Death Rules for Binance Veterans: The True Mantra That Has Saved Me from Liquidation Countless Times!
In 2019, I first traded contracts on Binance, going from 3000U to 12000U in half a month, feeling on top of the world.
As a result, I returned to square one overnight—not because the market didn't give me a chance, but because I stepped into a trap. Later, an old Binance veteran who had been in the game for 8 years threw these 8 life and death rules at me, saying that as long as I followed them, I could avoid 80% of liquidations.
1. Stop Trading After Hitting Stop Loss
Contracts are a game of small bets for big rewards, and losing money is normal. The real trap lies in revenge trading after a stop loss—don't think you can make it all back in one go. If you lose, stop, calm down, and change your strategy.
2. Quit the Fantasy of 'Making It Back Overnight'
Binance contracts are not like winning the lottery; don't expect one trade to change your fate. Over-leveraging only helps the market makers clear their inventory. Maintain your composure; only then will you be qualified to look at the next market wave.
3. Follow the Trend as the Only Truth
Going against the trend is a sure way to self-destruct. When the market is moving in one direction, just go with it; don’t confront the market head-on. Before the trend changes, going against it is merely a switch that accelerates liquidation.
4. Give Up Trades with a Risk-Reward Ratio Below 1:2
Only enter trades where the profit potential is at least twice the loss. This way, one win can offset two losses, allowing your account to survive longer.
5. Quit the 'Itch to Trade'
Frequent trading on Binance causes 99% of newbies to fail. Experts wait for opportunities, not chase them. The market isn't always ripe for the picking.
6. Only Make Money You Understand
Profits beyond your understanding are high-risk traps. What you think are 'windfall trades' might actually be setups designed for others to profit from you.
7. Always Set Stop Losses, Never Hold Onto Losing Trades
The moment you hold onto a losing trade, you start digging your own grave. Binance is not a charity; the market won't wait for you to break even.
8. Be Humble When Profiting
Don't get carried away when you make money; being complacent can lead to losses. The market is most ruthless when you think you're invincible.
Later, I realized that these 8 seemingly simple rules can truly save lives. Those who don't know how to navigate the crypto world rely on luck, while those who follow the rules survive on probabilities.
