I Used to Get Liquidated Because of FOMO and the Lesson Lasts Until Today
Many years ago, I started trading Futures on Binance. One time, I saw good news about BTC, and I FOMOed into a Long position right after the price had just pumped 50%. I didn't set a stop loss, didn't take profit. Just a few minutes later, my account got liquidated.
At that moment, I was stunned. But that loss was a turning point, as it taught me the most important thing: survival discipline.
After that, I began to divide my capital into 5 parts. Each trade only used 1 part, with a maximum SL of 10%. Thanks to that, even if I lost 5 consecutive trades, I only lost 10% of my portfolio.
I stopped trading coins that had just surged strongly. What jumps 50% in a few hours can also drop 50% without reason.
I learned to go with the trend. When the market rises, dipping down is an opportunity. When the market falls, bouncing back is a trap. I no longer tried to catch falling knives.
MACD and volume became my close friends. If the volume supports the price, I would enter. If the volume goes against, I stay out.
I stopped averaging down on losing trades. I only added to winning trades. And every week, I would sit down to review all the trades, noting what worked and what didn't.
Thanks to sticking to that principle, I went from $1,000 to a number that could be considered okay. Not by luck. But by not dying along the way.
And every time I feel like FOMOing into hot news, I remember that liquidation, that fall taught me how to truly survive.
