This trader was liquidated with a loss of $300,000, which was earned over a full 3 years of effort 😣 and hard work in a single trade 😱
Preserving capital is more important than the pursuit of quick profits. Stick to the rules to become a successful trader in the long run.
1. **Risk a small percentage**: Do not lose more than 1-2% of your capital in a single trade.
2. **Use stop-loss**: Set a loss level in advance and stick to it.
3. **Calculate position size accurately**: Do not over-leverage your trade relative to your capital.
4. **Avoid excessive daily risk**: Set a maximum daily loss (e.g., 5%) and stop at that point.
5. **Do not rely on high leverage**: Use it cautiously to avoid large losses.
6. **Stick to your trading plan**: Do not change your strategy due to emotions or news.
7. **Choose trades with better risk-to-reward ratio**: Aim for expected profit to be double the potential loss.
8. **Track your performance**: Record your trades to analyze mistakes and improve performance.
9. **Do not try to recover losses with random trades**: Emotional trading leads to bigger losses.