Liquidation is when a position is forcibly closed due to a lack of margin. For newcomers, this is the most painful “lesson” that can be avoided by acting systematically.

1) Don't chase high leverage
High leverage = lower “margin of safety”. Start with minimal leverage to understand the mechanics.

2) The size of the position is more important than “confidence”
Even if it seems that “it will definitely go my way”, there is always a risk of a sharp movement in futures.

3) Use stop-loss in every trade
Without a stop-loss, one unsuccessful trade can ruin the results of many successful ones.

4) Think about margin
Monitor how much margin is occupied and what the liquidation level is. Plan the trade before entering, not after.

5) Don't hold positions “out of emotions”
FOMO and the desire to “get back” is a direct path to mistakes.

6) Plan: where you enter, where you exit, where the mistake is
Before entering, determine:

• entry point,

• take-profit,

• stop-loss (the level at which your idea does not work).

7) Keep a trade journal
Record what worked, what didn’t. This accelerates learning more than “secret indicators”.

By the way, there is currently a Binance Futures campaign “Need for Profit” #NeedForProfit

If you are already learning and trading, you can combine this with participating in the campaign and compete for prizes:

• auto / 20 000 USDC,

• MacBook, iPhone,

• cryptocurrency rewards, merch, and other prizes,

• as well as a bonus of 10 USDC for newcomers.

Link to the campaign:
https://www.binance.com/activity/trading-competition/need-for-profit?utm_source=SQUARE