Do Not Lose Everything Youve Gained in One day, or One Trade

[Natsuu]

According to him, he went long with all of his entire crypto NetWorth on an Altcoin because he was expecting the price of the altcoin to jump back up, after a news (which was later confirmed to be fake) caused the cryptocurrency to go down, but unfortunately for him, by the time he woke up from sleep the next day, on checking on this trade, he discovered that he had been completely liquidated because the price of the crypto currency ended  up dumping even harder than before.

Anxiety and fear made me deposit more money and he try to see if he could DCA the dip and make some of the money he lost back, and at a point, the price reached his take profit target but unfortunately, the take profit did not fill before the price of the altcoin shoot up again and at end, he was liquidated again.

I think the friend learned his lesson here. Everyone has their mistakes to learn from right? It is just very unfortunate of him because he made so many wrong things at once. First off, putting all your money into one cryptocurrency is like going all in at a poker game, its  super risky. Also he acted on unverified news he should have calmed down first and did his research.I think he also let his emotions prevail as he wanted to recover losses by pouring in more money. It might seem like a good idea in the heat of the moment but it just made things worse for him
We all need patience in this crypto world. Prices can swing wildly so jumping the gun and not waiting for the right moment can burn anyone.

[Peanutswar]

The higher the profit the higher the risk, that's life if you can't take the risk you can't get the higher reward or profit. This kind of action can be an expensive lesson, this is the reason why you must have a trading plan and stick with it or else you will suffer like this For example, people make a lot of trades and once they lose trade has a bigger lose they are trying to make a risk to earn those backs. Consistency is the key at the end of the day your profit counts even though it's just a small trade. Know your limit, know your budget. Its not hard to set a TP/SL in trades people always tired to use this feature.

[Franctoshi]

From the narration of this your story, I could guess that the trader did not use stop-lose loss which led to his account being liquidated, Secondly, he as well did not use proper risk management, he might have used high leverage which he would not really tell you was the actual cause for the account liquidation, So these two things to me majorly will lead to such liquidation of an account. There is a leverage that you will use, no matter how the market parades you won't get liquidated.

From my personal experience, all the times I have been liquidated was as a result of

1. Using high leverage or lots size to trade.
2. No use of trading stops (stop loss).

What the market hates most is to see greedy traders, and to deal with them, the market moves to ensure they get liquidated.

[dunfida]

According to him, he went long with all of his entire crypto NetWorth on an Altcoin because he was expecting the price of the altcoin to jump back up, after a news (which was later confirmed to be fake) caused the cryptocurrency to go down, but unfortunately for him, by the time he woke up from sleep the next day, on checking on this trade, he discovered that he had been completely liquidated because the price of the crypto currency ended  up dumping even harder than before.

Anxiety and fear made me deposit more money and he try to see if he could DCA the dip and make some of the money he lost back, and at a point, the price reached his take profit target but unfortunately, the take profit did not fill before the price of the altcoin shoot up again and at end, he was liquidated again.

I think the friend learned his lesson here. Everyone has their mistakes to learn from right? It is just very unfortunate of him because he made so many wrong things at once. First off, putting all your money into one cryptocurrency is like going all in at a poker game, its  super risky. Also he acted on unverified news he should have calmed down first and did his research.I think he also let his emotions prevail as he wanted to recover losses by pouring in more money. It might seem like a good idea in the heat of the moment but it just made things worse for him
We all need patience in this crypto world. Prices can swing wildly so jumping the gun and not waiting for the right moment can burn anyone.

Everyone into their lives does commit out mistake on which it is really just indeed normal since there's no one on this world would really be that perfect specially on dealing things that we are really that in first time on doing it or something that do talks about trading then we cant really be able to make ourselves profitable or even on investment in our first tries. You would really be needing tons of time and effort before you would really be able to to have a good grasps.You would really be passing tons of failures and mistakes before you could really be able to make yourself that good into this field. Dont make yourself act like a gambler because if you do then you would definitely fail into this field. Never ever chase up losses and you should really know on when to call it a day and stop completely midway if you do see that trading now is not really that good.

Gains could really be taken back if you would really be continue on doing the same mistake. You should really be that mindful on whatever steps that you would really be making. There's no such thing
about having no risks and this is something that  you should really be targeting on,because on the time that you would really touching up this floor then
there's no easy way on dealing with it.Every steps do matter and the actions would be made.

[Awaklara]

This experience for me showed that he was really inexperienced when it comes to trading futures, but the truth is that, such a thing can happen to anyone in times when volatility is very high, when price runs become really high, it makes sure to liquidate both long and short position in a matter of seconds and minutes, most especially, if you open a position with a very high leverage.

From what you describe, your partner was probably successful in his first few trades and he became confident with his subsequent trades. I'm not saying your friend doesn't have trading skills, but maybe he lacks experience in dealing with market news. what was clear was that it destroyed the trading plan he had made.
especially if you open a trade with high leverage, you may hope to catch up on losses. but he may unknowingly have increased his risk of greater loss. even draining all his money.
tell him to stop and try DCA for Bitcoin. maybe he will know a little about how to make a profit.

[BitcoinTurk]

Yes, when I was trading without sufficient experience before especially when I was trading with leverage and I didn't use the stop loss I lost all the profits I had made in a single trade or several different trade and the profits I had made from previous trades. Nowadays, even though I use the stop loss if I make several trades during the day, I lose my money or my earnings from previous trades. This is actually a situation that is frequently encountered by everyone who trades with leverage especially those who use high leverage and unfortunately even if we are a very experienced trader it is a possibility that we are likely to encounter frequently when we cannot control our emotions.

[ShowOff]

I won't argue that futures trading is likely to make traders lose everything if they are too eager to get rich overnight. I prefer to avoid futures trading even though I am optimistic that I can make a profit through the right strategy, but I will not try that trading so that my long-term plans are not damaged.

Of course there is no harm in taking advantage of futures trading if they understand it well. You also need to limit your budget to start with rather than putting all your honey pot in one fell swoop, even if only 5x can certainly put you at high risk of losing. Spot trading is certainly better to avoid the risk of losing everything, but I tend to believe that long-term investing is a sensible choice.

[michellee]

Before trading futures, one must be familiar with spot trading because the rhythm is not very fast. If the market is in a normal condition where it does not rise or fall too quickly, he can trade without a rush. But if the market moves quickly and he can't keep up, he will make wrong decisions and if he is inexperienced, it will only make his losses bigger.

Futures trading is riskier because if he puts all his capital in the trade but the market suddenly changes direction before closing the trade, he could lose all his money. But it depends on what mode he uses, isolated or cross. If he uses the cross method, it will use up all the money in his balance until the market moves in the direction he is trading. And he must also understand when to place a stop loss to reduce the amount of his losses.

Nowadays, we have to be more careful because there are sudden reversals in direction and if we are inexperienced, we can make mistakes in analyzing and making decisions. If he wants to trade in futures trading, it is best not to use too large capital. That would be better because he wouldn't lose as much if he lost.

[Bushdark]

Yes, when I was trading without sufficient experience before especially when I was trading with leverage and I didn't use the stop loss I lost all the profits I had made in a single trade or several different trade and the profits I had made from previous trades. Nowadays, even though I use the stop loss if I make several trades during the day, I lose my money or my earnings from previous trades. This is actually a situation that is frequently encountered by everyone who trades with leverage especially those who use high leverage and unfortunately even if we are a very experienced trader it is a possibility that we are likely to encounter frequently when we cannot control our emotions.

Stop lose is an important tool that will aid our earnings and not make us to lose funds any how due to market volatility. Those that understand how the market works will know that trading is not just about the skill alone of the portfolio of knowledge we have acquired.

We need to understand the market and how to be safe while trading because it is better to keep the fund available than to lose it due to market volatility we never prepared for. Those that have been in market for many times will understand that trading is more about maintaining a good startegy and discipline to follow trading plans without altering it.

[jeraldskie11]

I won't argue that futures trading is likely to make traders lose everything if they are too eager to get rich overnight. I prefer to avoid futures trading even though I am optimistic that I can make a profit through the right strategy, but I will not try that trading so that my long-term plans are not damaged.

Of course there is no harm in taking advantage of futures trading if they understand it well. You also need to limit your budget to start with rather than putting all your honey pot in one fell swoop, even if only 5x can certainly put you at high risk of losing. Spot trading is certainly better to avoid the risk of losing everything, but I tend to believe that long-term investing is a sensible choice.

Futures trading provides an opportunity for traders who want to profit significantly without having a large capital. It is not suitable for new traders who are not yet profitable. If you're new to trading, spot is a preferable option because the risk is lesser than with futures. And if you can be profitable with spot trading, then you can try futures trading. As you mentioned, it's advisable to utilize a small amount of money to avoid large losses.

[I_Anime]

It's literally true that it can happen to any one in times when volatility is very high. In  Losing so much just in one trade, Because I've also   experience such thing due to false news and miscalculations too.

 What most of us want is to catch the bigger fish without much  experience in catching any fish at all. What I'm trying to say is that, For instance you know that increasing your leverages to 10X or beyond will trigger your liquidation to take place very fast and increasing your risk in losing, just to gain more profit.When you're not too sure about the market you're jumping into. There's a high chances you may  end up losing the  money you use to enter the market With  liquidation.And the funny thing is  that  after losing that much you will stop thinking and planning, at that moment your only aim will be getting that money back. And that's when the losses begins.
   You just need to focus in risk management, and mind the kind of leverages you're using. Focus more on earning more profit, less losses Than bigger profit and high losses.

[tjtonmoy]

I have taken a break from future trading for a while now. I don't have that much advance knowledge about trading that I can make profit in this volatile market. So instead of trading right now, I am focusing more on doing DCA to accumulate more. And in the upcoming event of bitcoin halving, we will see a great pump in price for the potential bull run. You can say that day trading is not for me. I have tried it several times but wasn't that much profitable. So I am focusing more on hodling.

The story shared in the OP is a great example for people who are not using risk management. Risk management is a crucial thing when it comes to future trading. The market is volatile and anything could happen at any time. For that reason, if we use stop loss than the losses we make could be minimized to a certain level where it won't affect our future trades. This is a great choice if you don't want to have regret for your decisions.

[Yamifoud]

it is very important to be most careful while day trading when volatility is high, just as it has been in a few days now, this is specially for those who trade the futures market, trading futures is 10x more risky than trading spot, in futures trading, a simple miscalculation or failure to use proper risk management could lead to you being liquidated and all the money invested gone in a twinkle of an eye.

Best to avoid trading futures in times like this, but if you must, make sure you know what you are doing, and use proper risk management like the stop loss and take profit features, also ensure you are only trading with an amount of money you can afford to lose, and remember not to put all your eggs in one basket.

That is how important to know our capabilities as many traders underestimate the volatility of the market and then try futures trading not knowing how risky it is especially for newcomers. Many of us have been taught that Futures trading is more profitable compared to spot trading and that brings to our attention and courage to choose this one until they realize that it was not. Our common mistake is that we easily believe those people saying this without reading feedback from other traders who tried this. Even though some of them will say that they become successful but it doesn't mean that we can be like them. 

[boyptc]

What a mistake your friend did.

He shouldn't do leverage when he's not going to monitor it. That is why when I'm always doing stuff and not leaving my trades, I keep track on it wherever I go.

And putting all of your networth on a single trade is a crazy thing. I'd always do the trades that it's not going to cost me that much so I am safe.

While the entire networth of me is on a safe place where I wouldn't touch it for so long.

[TelolettOm]

The higher the profit the higher the risk, that's life if you can't take the risk you can't get the higher reward or profit.

This is true, gaining higher profits will require higher risks as well.
But for the people who don't understand the risks, they only focus on the potential profits. They use all the capitals at once, then they regret it when they get losses. They don't know that there is no guarantee for profits. They think it is safe, but it is a big mistake to assume crypto is safe.

Consistency is the key at the end of the day your profit counts even though it's just a small trade. Know your limit, know your budget.

Consistency isn't the only key for success. We must be smart and wise, these will have a big role in determining the every decision we do. These can be mastered if we have good knowledge and mentality.

[barisbilgili]

it is very important to be most careful while day trading when volatility is high, just as it has been in a few days now, this is specially for those who trade the futures market, trading futures is 10x more risky than trading spot, in futures trading, a simple miscalculation or failure to use proper risk management could lead to you being liquidated and all the money invested gone in a twinkle of an eye.

Best to avoid trading futures in times like this, but if you must, make sure you know what you are doing, and use proper risk management like the stop loss and take profit features, also ensure you are only trading with an amount of money you can afford to lose, and remember not to put all your eggs in one basket.

That is how important to know our capabilities as many traders underestimate the volatility of the market and then try futures trading not knowing how risky it is especially for newcomers. Many of us have been taught that Futures trading is more profitable compared to spot trading and that brings to our attention and courage to choose this one until they realize that it was not. Our common mistake is that we easily believe those people saying this without reading feedback from other traders who tried this. Even though some of them will say that they become successful but it doesn't mean that we can be like them. 

Knowledge will indeed be very important before we start trading because without having good knowledge we will lose the money we use to trade. To be able to make a profit in trading, we have to understand the trade we are doing well, don't just hear from people that it is very easy to make a profit from trading, so we try it straight away, of course this will make us unable to avoid the losses that we will incur in trading, we cannot possibly trade to make a profit without understanding it well, so it is very important to learn it first before trading.

[el kaka22]

I have a similar friend like this who just opted for a 20x long right now. I mean that should be proof enough how silly these people are, the price already went up like crazy and he is getting in now, after all the increases, all because he thinks it will continue. What if this was all that it went up to and not going to end up any higher than this? Shouldn't you want to invest when it is going up, not after it goes up? Why be so late to the party?

And this is also such a big risk that one wrong move and all of your money is gone, I wouldn't invest like that at all, there is no possible way that I would ever do something like that. I could very well be wrong, I am not 100% perfect at trading, and never seen anyone who is that perfect, which means that anyone can be wrong, and that means anyone could lose their money. So in a market that anyone could be wrong, betting ALL of your money into just one thing doesn't really make sense to me, it is not really that smart.

[Vispilio]

Leverage completely changes price action in the underlying asset, this is as true for fiat products as it is for crypto assets.

Regardless of what your own preferences are, if futures or any leveraged derivative is being widely offered in the asset you are interested in, you have to factor in the sentiments and the targets of the leveraged traders into your own calculations, as they will usually dominate and dictate the price action in the spot market.

If you want to really stay away from leverage and still would like to pursue exponential gains without ever risking liquidation, you might want to include DEX tokens in your list that are only offered in 1-2 markets, and which definitely don't have any derivatives based off them yet...

[Strongkored]

More precisely, avoid futures trading in any market conditions when you do not understand the magnitude of the risks of this type of trading, especially when opening a position because you believe in news because it means the trader has not carried out an analysis first.
Spot trading will be safer and novice traders will be better off learning this type of trading, because they can learn it slowly, and futures trading is not suitable for everyone because many are successful in spot but in futures the results can be different.

[AicecreaME]

People are greedy.

I also experienced this once, because my mindset is that if I won a trade using my technical analysis, I can win the next trade that I'm going to make with a higher leverage for an easy profit, but it's not as simple as that, because trading is not always Christmas. We always forgot the risk management and the right management of our funds and profit, that's why we always lose everything and the rage trading will start.

Chasing the losses is the most case scenario for newbie traders, trading randomly because of their frustration hoping to make profits without any plan at all.