Guys, do you think getting liquidated is always because you got the direction wrong?
A lot of the time, what really pushes an account off a cliff is losing control of your position size first.
I once saw a 10,000 USDT account where the market read wasn’t really that bad. He went long when he thought prices would rise, and the pullback did turn around. The problem was that he started with a position that was far too large. The market only moved a few points in its normal fluctuations, but the account was already struggling to hold on. At first, he thought losing 500 was manageable. When the loss hit 1,000, he started adding to the position. Then prices kept falling, and he thought he could lower his average entry price. In the end, he wasn’t trading anymore—he was fighting his own position. This kind of thing is incredibly common.
When a lot of people open a futures trade, the first thing they ask is: How much can I make this time?
These days, I start by working out something else: If I’m wrong, how much will I lose on this trade?
If that’s more than you can stomach, then it doesn’t matter how accurately you call the direction. The market won’t move according to your analysis. You can be wrong, cut your losses, and start again next time. But if your position is already beyond what you can handle, one sharp move could wipe out all your chances afterward, too. So these days, I take my time when I’m watching the charts. If there’s no clear setup, I don’t trade. If I have several losing trades in a row, I stop. I don’t increase the size of my next position just because I lost on the last one. Sometimes I watch the market for hours and don’t place a single trade—and I’m perfectly fine with that.
In futures trading, the person who hits the open button the most doesn’t necessarily make the most money. What you really need to figure out isn’t “How much can this trade multiply my money?” but “If I lose this trade, can I still calmly take the next one?” Keep your position size manageable, and there’ll be another round.
A lot of the time, what really pushes an account off a cliff is losing control of your position size first.
I once saw a 10,000 USDT account where the market read wasn’t really that bad. He went long when he thought prices would rise, and the pullback did turn around. The problem was that he started with a position that was far too large. The market only moved a few points in its normal fluctuations, but the account was already struggling to hold on. At first, he thought losing 500 was manageable. When the loss hit 1,000, he started adding to the position. Then prices kept falling, and he thought he could lower his average entry price. In the end, he wasn’t trading anymore—he was fighting his own position. This kind of thing is incredibly common.
When a lot of people open a futures trade, the first thing they ask is: How much can I make this time?
These days, I start by working out something else: If I’m wrong, how much will I lose on this trade?
If that’s more than you can stomach, then it doesn’t matter how accurately you call the direction. The market won’t move according to your analysis. You can be wrong, cut your losses, and start again next time. But if your position is already beyond what you can handle, one sharp move could wipe out all your chances afterward, too. So these days, I take my time when I’m watching the charts. If there’s no clear setup, I don’t trade. If I have several losing trades in a row, I stop. I don’t increase the size of my next position just because I lost on the last one. Sometimes I watch the market for hours and don’t place a single trade—and I’m perfectly fine with that.
In futures trading, the person who hits the open button the most doesn’t necessarily make the most money. What you really need to figure out isn’t “How much can this trade multiply my money?” but “If I lose this trade, can I still calmly take the next one?” Keep your position size manageable, and there’ll be another round.