Hello everyone, I am Teacher Qiyang.
It is now 21:00 on February 4, 2025, in the East 8 time zone.
So, have you recently faced liquidation? Bitcoin has fluctuated 10,000 points back and forth recently.
Many people tell me they have faced liquidation. So, have you faced liquidation?
How to avoid liquidation?
Liquidation is a very painful thing for everyone.
The impact on your confidence is very significant.
Negative emotions can last a long time.
So, what are the major reasons for liquidation?
1) Your multiplier is too high.
Another reason is that your direction is wrong.
Can you enter the market in two or three batches?
You don't pay much attention to the increase or decrease in volatility of a particular asset.
For example, a new monthly line needs to be opened between the 1st and the 31st, and when the weekly line is opened every week.
On Monday morning, the volatility is also relatively high.
Let's think deeply about where your losses or liquidations come from.
You will find that all your losses come from stop-losses.
Beginners don't set stop-losses, everyone is desperately trying to get them to set stop-losses.
When you are an experienced trader, you will find that you are quite accurate sometimes.
Because stop-losses hinder you, or the stop-loss is too close.
Or because of a stop-loss, it caused you to lose money. So how should this be handled?
This is something I have thought about many times.
Of course, your system needs to be fixed, and the multiplier should be small.
And also, can you enter in batches?
It is also very important to fire at the turning point.
If you chase highs and cut losses, you will definitely set stop-losses.
If you are bottom-fishing or peak-hunting, consider whether you should enter in batches.
Don't set stop-losses like this, it's about to turn.
In fact, the answer can sometimes be opposite in different scenarios.
