Alright, it seems like I should just give up soon!
Seeing myself get liquidated is really sad..
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Just kidding 😜 Did you guess I was going to say I would quit?
Or that I would never trade coins again?
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Alright, let's talk about what went wrong with my liquidation this time.
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1. Trying to catch the bottom while neglecting the risks of not touching the trend line
I personally like to use trend lines as a technical indicator, but I lost because I sold too early when the candlestick was rebounding but hadn't touched the trend line yet, and later continued to drop, only to realize there was still a bottom beneath the bottom.
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2. Opening too many positions losing control over funds
This doesn't refer to frequent trading or crazy stop-losses, but rather opening many positions in other coins. While this may seem like a way to improve efficiency, it also increases the risk of managing positions, seeking speed but adding unnecessary risk is a big no-no.
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3. Operations different from the original strategy
Everyone has their own trading strategy, but if the strategy set beforehand differs from the later operations, it can lead to confusion about what one is doing. I accidentally increased my position blindly because of this, adding a lot of risk to myself, which is also a big no-no.
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Alright, this liquidation was actually quite refreshing. I roughly understand why so many people get liquidated. It's not about avoiding greed and fear or whatever nonsense, but rather prioritizing risk management, and you need to pay attention to risk control no matter what you do or think from start to finish! It can be pretty exhausting.
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Alright, that's it for this article~ Although this liquidation is sad,
it allows me to improve my trading strategy,
and it reminds me to always prioritize risk awareness,
looking forward to going further in the next trade 😁
Waiting to withdraw money on the 10th to invest another 100U to continue the journey~
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To all the family members in the crypto world, let's work hard together in the future :))