The Story of Getting Liquidated Due to FOMO and the Lesson I Will Never Forget with @Binance Futures
Although an experienced trader, I was recently liquidated in a Long $TRUMP order due to a basic mistake: FOMO and not placing a stop loss when trading Binance Futures. Here is the story:
Last week, President Trump announced plans to hold a party with the top 220 $TRUMP holders. Seeing this as bullish news for Trump, I immediately entered a Long order after the price had increased by about 50%. Just 2 minutes later, I was surprised to see that the Long order was quickly liquidated and realized how amateurish I was for FOMOing the news and not placing a stoploss.
I was going to withdraw my $USDC from Binance Earn and transfer it to Binance Futures to get back the lost money, but while surfing X, I read a post from the Binance Futures account itself:
"Pro Tip: Never underestimate the power of setting SL/TP orders!
Protect your gains and minimize risks."
This post made me stop and think carefully about my actions. I decided not to continue placing orders and calmly observed. $TRUMP then fluctuated with a large amplitude and if I placed more orders, it seemed like they would all be liquidated.
After that, I summarized 3 lessons after being liquidated as follows:
1. Never FOMO on the news even if you realize how good/bad the news is
2. Always place SL/TP on any order (this is a rule that Binance mentioned publicly)
3. Read more documents from Binance Blog such as: "3 Misconceptions about Liquidation in Binance Future" binance.com/en/blog/future… (this article explains very well the cases where a position is liquidated, the actual liquidation price and the difference between margin modes)
Finally, I would like to tell you to always place SL/TP and DYOR at all times. Don't expect too much from the news and follow the crowd.
#TradeStories #FOMCMeeting #USHouseMarketStructureDraft
