In a bull market, do less shorting; in a bear market, do less going long. Learning this will significantly reduce the probability of liquidation risks. 😃😃😃
The volatility of the market plays a substantial role in causing trade liquidations, but more importantly: most people do not set stop losses; they just stubbornly hold onto their positions. In such a scenario, whichever direction has less volatility is safer. The decline in a bear market is much greater than the rise in a bull market, and the rise in a bull market is much greater than the decline in a bear market.
So if you are a new trader and don’t know how to find long or short positions, or when to enter the market, then just hold onto short positions in a bear market and long positions in a bull market!
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