Choose Stop Loss over Liquidation

[Cryptohygenic]

What advice should I give him?

You know his flaws and like you said, you have strengthened him up for good trading indications and strategic trading of taking profits accountabilities and as well setting up the stop lost bots.
You did not talk about his financial management which could had been one major problem for him but ideally, he should not just trade on any listed crypto coins as due to variabilities of liquidations, he might just get tied of stocking useless coins.
He should be contented with any small profit but in a continues pace he would make it huge.

[Baki202]

To your last question, he should be patient really. No rush, always use stop loss and always wait for his preferred entry before taking a trade. Now tell me about this liquidation protection you talked about. How does that work??

When you are trading you need to try not to be greedy because when you are to greedy there will be some kind of consequences that it comes with because it is not as if some people don't know what stop loss is or how to use it, they just deliberately seem not to care and if they don't do leveraging they might have the chance of making more money. They don't consider the risk that it comes with high risk of liquidation, people really are very funny, you don't want to be liquidated but you don't want to also do the right thing and this is why some times I don't actually pity when most of this traders are liquidated because obviously they know what to do and they did not pay attention to it and now they are regretting, if you are a beginner you will need to have learn to be patient because we know how careless we can be sometimes,  it will be better to just put all the important measures in place so that you don't  get liquidated. The more you trade the better you get at it.

[Issa56]

A word of caution is enough for the wise. I'm sharing this because of a close friend who saw me trading a few days ago and thought it was easy after watching some YouTube videos. He bought XRP futures and lost up to $1,000.

After some people watch videos on YouTube, and they give it a trial and they win, they will start thinking they are already professional traders, until trading humbles them. You can only learn basics on YouTube, before you understand trading better, then you will have to put it into practice, and constant learning.

As a beginner, why will you even start with future trading? Or why will you even start trading with so much amount of money? As a beginner, you should start with spot trading, if you keep on understanding the system, then you can decide to start trading futures also, but some professional traders doesn’t involve themselves in future trading because of the risk involve in it.

Making use of stop loss is really nice, but not everyone prefers making use of it, some people prefer they monitor the market themselves, because some do complain that after the stop loss have been hit, the market do always bounce back, so they don’t make use of it.

[justdimin]

When you are trading you need to try not to be greedy because when you are to greedy there will be some kind of consequences that it comes with because it is not as if some people don't know what stop loss is or how to use it, they just deliberately seem not to care and if they don't do leveraging they might have the chance of making more money. They don't consider the risk that it comes with high risk of liquidation, people really are very funny, you don't want to be liquidated but you don't want to also do the right thing and this is why some times I don't actually pity when most of this traders are liquidated because obviously they know what to do and they did not pay attention to it and now they are regretting, if you are a beginner you will need to have learn to be patient because we know how careless we can be sometimes,  it will be better to just put all the important measures in place so that you don't  get liquidated. The more you trade the better you get at it.

Yeah, you will take risks you shouldn't, act as if you want more when you can't have it and overall will want more and more, never satisfied, reaching to an unrealistic expectation from the market. Like if you put 1k in, at x150 leverage, and hope to make 150k, there is zero joke that you could actually make that if you are correct and it goes your way.

However, if you do it again, but this time put 150k in, to make more, then you could lose it all. That is greed and as long as people do this kind of stupid moves, they are going to end up losing a lot of money and they won't be making any decent income. We need to realize these are difficult periods and it is not going to be easy if you are not careful with it.

[gunhell16]

I don't see anything wrong with what you say that you should always remember to set SL when setting TP, because it's also true that if you only set TP, the chances of being liquidated quickly are still high if the analysis you did for the asset you chose is contrary to your setup.

And in my opinion, the majority of traders here in the crypto space know that, because others are too complacent that they are doing the right thing when placing positions so they only place
TP but when the trend suddenly changes, they just hold their heads in their hands because they are liquidated immediately.

[adzino]

Liquidation is something I fear the most in my trading history, because no matter how sure you are about a trade, the market can decide to go otherwise. If you've only set a take-profit (TP) without setting a stop-loss (SL), you'll surely face liquidation at the end of the day.
A seasoned trader once said it's better to hit your SL than to liquidate, because you'll have something to fall back on to recover your losses.

A word of caution is enough for the wise. I'm sharing this because of a close friend who saw me trading a few days ago and thought it was easy after watching some YouTube videos. He bought XRP futures and lost up to $1,000. Ironically, he later came to confess to me, which was already too late, as his overconfidence had led him to neglect setting an SL. I helped him fight for liquidation protection, and he managed to get $100 back here due to his larger trading volumes.
Now, he's back to learn from me. What advice should I give him?

I assume this is about futures trading, right? If you want to manage your risks, then it is best to use stop loss. If you just put a long position with just take profit and do nothing to prevent any catastrophic losses, then you are not trading. All you are doing that is gambling with the hope that the price will never fall below a specific amount and that it will keep on rising. But this is not true. Any unexpected fluctuation in the market can cause the price to dip significantly for few seconds and this dip will cause you to get liquidated and this is what happens most of the time. Its best to have something left than nothing at all. You invest $100k  and you are losing money. At that moment being able to save even $10k would feel less depressing.

[WeedGoW]

All of us who trading are familiar with Stop Loss. Every trader uses stop loss. The importance of stop loss in trading is immense. If the stop loss is correctly saved. Then there can be a lot of safety. Exposure of training no longer without Star Plus can increase a lot and bad situation for him can get worse. I think that the trading system should be part of the stock loss. In this way a trader’s loss can limit its loss if the market goes in opposite direction. And you always need to take any decision seriously and the amount of risk you can take will depend on you who should be careful about unexpected events. What you take and what the expected reward with him should be fixed from before this ratio will help when making his decision. Additional self-confidence can cause own damage so every trade has the right analysis and preparation to take place so that unexpected events do not happen.

[Ndabagi01]

Liquidation is something I fear the most in my trading history, because no matter how sure you are about a trade, the market can decide to go otherwise. If you've only set a take-profit (TP) without setting a stop-loss (SL), you'll surely face liquidation at the end of the day.
A seasoned trader once said it's better to hit your SL than to liquidate, because you'll have something to fall back on to recover your losses.

Stop loss is very important in trading and I’m so surprised to come across people that don’t really fancy putting stop loss on their trades, they believe in their analysis so much and they believe it’ll never hit the zone that the stop loss was set to be. The market is very unpredictable and you can’t be so sure that your analysis will go well as we all trade base on probabilities and not certainties. A world of advise for newbies and upcoming traders, stop loss is very important in your trades as it gives you the privilege to get to trade again while learning to avert from your previous mistakes when taking another trade. It is better to hit your stop loss and not liquidate and I also believe in the the theory that it’s better to miss entry than to hit stop loss in a trade. All this is to avoid liquidation.

[Bushdark]

All of us who trading are familiar with Stop Loss. Every trader uses stop loss. The importance of stop loss in trading is immense. If the stop loss is correctly saved. Then there can be a lot of safety. Exposure of training no longer without Star Plus can increase a lot and bad situation for him can get worse. I think that the trading system should be part of the stock loss. In this way a trader’s loss can limit its loss if the market goes in opposite direction. And you always need to take any decision seriously and the amount of risk you can take will depend on you who should be careful about unexpected events. What you take and what the expected reward with him should be fixed from before this ratio will help when making his decision. Additional self-confidence can cause own damage so every trade has the right analysis and preparation to take place so that unexpected events do not happen.

There are so many trades that had been liquidated over time because traders were so confident about the pairs they are trading.
Most traders problem is over confidence and we should always try to use stop loss because that is the only way we could safe our trading portfolio from crashing out.

There are so many whales that are manipulating the market and we need to know what we are doing so we don't finally lose all funds because of the mistake of not using stop losses. Those who have had bad experienced of their trades been liquidated because of lack of using stop losses and analyzing the market thoroughly before trading would understand how painful it could be to lose almost your entire bankroll.

[jaberwock]

What advice should I give him?

You know his flaws and like you said, you have strengthened him up for good trading indications and strategic trading of taking profits accountabilities and as well setting up the stop lost bots.
You did not talk about his financial management which could had been one major problem for him but ideally, he should not just trade on any listed crypto coins as due to variabilities of liquidations, he might just get tied of stocking useless coins.
He should be contented with any small profit but in a continues pace he would make it huge.

That's nice if he is tired on those useless coins. They are useless anyways but there are also useless coins ( meme coins for instance ) that still can pump sometimes but of course, those coins with utility are still much better than them. Small but continuous profit sounds nice to you and me but not for others. For them it is better to earn huge even if it's rare to occur.

As long as they are not losing, I think there is no problem with that. Not all cryptos are legit or good in quality despite being listed, so yeah that we should not try and trade each of them. He already know his friends flaws, so this should include knowing how his friend manage his finances.

[Huppercase]

A word of caution is enough for the wise. I'm sharing this because of a close friend who saw me trading a few days ago and thought it was easy after watching some YouTube videos. He bought XRP futures and lost up to $1,000. Ironically, he later came to confess to me, which was already too late, as his overconfidence had led him to neglect setting an SL. I helped him fight for liquidation protection, and he managed to get $100 back here due to his larger trading volumes.
Now, he's back to learn from me. What advice should I give him?

The rate at which people lose money to future trading is alarming especially now that the market is choppy and they aren't moving well. I'm very sure that your friend doesn't know how to trade properly, I will rather lose some dollars to stop loss than lose everything to liquidation, you can never go wrong with stop loss unless if there is high volatility of that coin and I mean if the price spike up and down and then return to where it was trading.

I was enjoying futures when Bitcoin price was going up but one thing I never did was using high leverage, that way I don't use stop loss only if I'm sure the market price will quickly go back to where it's trading and I don't trade all coins, I'm very reserve with Bitcoin most of the time, XRP is just that coin that is all about insider doing their lobby to move the price and after a while, you will see the price going down again, not good to bet on such coins on future.

[leonair]

Liquidation is something I fear the most in my trading history, because no matter how sure you are about a trade, the market can decide to go otherwise. If you've only set a take-profit (TP) without setting a stop-loss (SL), you'll surely face liquidation at the end of the day.
A seasoned trader once said it's better to hit your SL than to liquidate, because you'll have something to fall back on to recover your losses.

If someone expects 10% profit from his investment from spot trading, then he gets 100% from future trading and sets TP accordingly. Because most traders use futures trading like gambling due to which his entire investment is at high risk. The higher the leverage he takes, the faster his TP and liquidation will hit. In futures trading, most traders set TP but do not set SL. This leads to more liquidations. Futures trading allows you to accept risks and losses like a gambler. So SL is not used much here. Most traders are overconfident here and instead leave their profits to their luck.