Choose Stop Loss over Liquidation

[Olamidetechie]

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?

[dansus021]

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?

Always put stop losses and take profit that is the real answer, the real enemy is your emotion. If you can control of yourself you can win that is why in trade there is a term called fear and greed. You fear when minus is coming to your PNL but sometimes we greed when our PNL is green.

If there is an option stop loss over liquidation the best option is always to choose stop loss

[WillyAp]

In trading stop loss is marketed as the insurance.
Buuuuut it fails, in situations of volume de or revaluation stop loss can let you loose.

https://www.thestockdork.com/common-stop-loss-mistakes-traders-make/

[Asiska02]

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?

Never too get confidence that a market will not reverse even if your analysis plays out well for you. Hitting SL is far more better than liquidation and it’ll help you to have some hope that you can get what you’ve lost back by relying on your remaining balance to risk gradually again. Not setting an SL is the quickest way to liquidation, so as a newbie or professional trader, setting an SL in all trades should be a necessity and not a choice. When you’ve learnt from your loss and have no more capital to fall back on and trade, it can easily kill your morale to trade at that time. While you may still have money to fund again, practice proper risk management in order not to get liquidated at anytime in the market.

[ajiz138]

It is too careless if futures traders do not set stop-lose because we know market movements are difficult to predict, therefore people who are too reckless with SL have ignored their risks.

I've seen in X and this was widely reported if I'm not mistaken he was liquidated $1M when he was sleeping, because he forgot to set a stop-lose.
Futures trading is most avoided by me because I know the risk is so great that I don't want to not bear it.

[justdimin]

Always put stop losses and take profit that is the real answer, the real enemy is your emotion. If you can control of yourself you can win that is why in trade there is a term called fear and greed. You fear when minus is coming to your PNL but sometimes we greed when our PNL is green.

If there is an option stop loss over liquidation the best option is always to choose stop loss

Fear and greed is definitely a good indicator, I have always seen it work perfectly so far. Stop loss is one that I would agree, but take profit isn't one that I would fully agree with. I can see why that would feel the same way, but I hope that it would not be all that same. In the sense that if you do stop loss, then you avoid losing money and that is all what we should achieve here, just not lose money as long as we do not lose money, we are doing fine.

On the other hand, if we could just "not make profit" that is fine, it is not the same thing, because take profit makes you try to take your profit as early as you can, but without it, you still could just use stop loss and avoid losing. And that way you can wait for it to grow further than your take profit number and make even more money.

[Stable090]

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 you are not a professional traders yet, I do recommend we avoid future trading, because we can easily lose our money there compare to spot trading. If you are in  spot trading, if a coin dumps, if you can just hold, then with time the coin will bounce back if you are holding a strong coin, but when it comes to future trading, if the market goes against you, instead of you to hold and wait till it bounce back, if the price hits the liquidation price, then you will be losing everything.

Stop loss is really important if you are in market, and you are not really active online to monitor the market, at least if the market goes against you, it’s going to reduce the amount which you will be losing, instead of you losing all your money. It’s better to lose maybe 5-10 percent of your capital instead of losing everything, so stop loss it’s really a nice idea, but not everyone likes making use of it.

Am not the type that really involve myself in future trading, because have really learnt a lot, and have lost so much money in future trading, but now I only focus on spot trading, and I think that’s just better for me. You can easily make so much profits in future trading, if you make use of high leverage, but the risk also is too high, you can easily lose your money.

[Oshosondy]

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.

This means you have been trading just altcoins is what I am thinking and that you are not trading bitcoin. Or you are using a very high leverage if it is bitcoin that you are trading. High leverage is not necessary for altcoins to liquidate you because thet can go 2x at anytime. Just gamble with them those highly volatile altcoins.

[DeathAngel]

Obviously if you like to trade with leverage then it’s best to use a stop loss. I really don’t advise leverage trading though, I think it’s fuelled by greed & impatience. The best way to make money in crypto is buying regularly, hold for multiple years. Sell bull cycle tops & bull bear market lows (as close as you can). It’s a game where you need patience but you are far less likely to lose money like with leverage trading.

[Olamidetechie]

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.

This means you have been trading just altcoins is what I am thinking and that you are not trading bitcoin. Or you are using a very high leverage if it is bitcoin that you are trading. High leverage is not necessary for altcoins to liquidate you because thet can go 2x at anytime. Just gamble with them those highly volatile altcoins.

Firstly, I am actually not the person as you have seen there and I believe that as a novice that he is, he was thinking that high leverage will make him alot of money which later backfire

[ultrloa]

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?

Don't let yourself get liquidated and don't think its normal scenario in trading since if you have that mindset to win or lose everything then you might suffer from lots of issues on your trade.

So better set stop loss so that you can possibly minimize the damage you got especially if the market falls. Also don't ever think about its easy to earn money on trading and don't be so greedy trying to hit huge gain because sometimes those wrong expectation would provably put us on huge troubles.  Also better learn more about future trading and don't go there if you don't have enough knowledge since that trading option is so risky.

[Mahanton]

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?

Don't let yourself get liquidated and don't think its normal scenario in trading since if you have that mindset to win or lose everything then you might suffer from lots of issues on your trade.

So better set stop loss so that you can possibly minimize the damage you got especially if the market falls. Also don't ever think about its easy to earn money on trading and don't be so greedy trying to hit huge gain because sometimes those wrong expectation would provably put us on huge troubles.  Also better learn more about future trading and don't go there if you don't have enough knowledge since that trading option is so risky.

Getting liquidated then this would really be that only pertaining to those who do made out some futures trades but we do know or i have been able to experience those countless times into those trades on which it do give out that almost hitting up that liquidation price but ended up on having that rejection on which the trade did go through on what i have analyzed or predicted. This is where some traders really that being not wanting to close up their positions and would really be wanting to hit up those liquidation rather than on making themselves having that to those stop loses. It will really be that something situational because each trader does have their own approach and actions to be made on which this will really be that particularly be basing up into the current situation that they are really that getting involved with. Adjustments and outright decisions will really be the key.

Obviously if you like to trade with leverage then it’s best to use a stop loss. I really don’t advise leverage trading though, I think it’s fuelled by greed & impatience. The best way to make money in crypto is buying regularly, hold for multiple years. Sell bull cycle tops & bull bear market lows (as close as you can). It’s a game where you need patience but you are far less likely to lose money like with leverage trading.

If you arent that good when it comes to spot trading then never ever make yourself trying out to deal with futures trading. Some saying that futures is like gambling on which i could partly agree on this one. If you dont really know on what you are really that doing then it will really be better that you should really be that making yourself that learn up first about the basics. Try to be that sustainable at least then you would really be having the idea on what you should gonna do at the time or moment that you do touch up this unpredictable space.

[SiliconHat]

It is too careless if futures traders do not set stop-lose because we know market movements are difficult to predict, therefore people who are too reckless with SL have ignored their risks.

I've seen in X and this was widely reported if I'm not mistaken he was liquidated $1M when he was sleeping, because he forgot to set a stop-lose.
Futures trading is most avoided by me because I know the risk is so great that I don't want to not bear it.

I’m quite surprised, i mean no matter how much money a trader has stop-loss should be in the first measure to set in case the trade goes south. It can only be forgotten if the trader is a newbie.

I’m sure this is the reason Bitget organized an opportunity for new traders to be protected from liquidation because it’s certain new traders get liquidated the most. Though i’ve seen professional traders also make this mistake due to emotions. To avoid loss in crypto, one has to be very careful when emotions want to creep in.

[Bushdark]

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?

Te challenges many people that called themselves traders are facing in the market is because of greed.
Greed has made so many traders that don't want to use risk management in trading lose most of their funds which they might not be aware about. Such kind of trading is known as gambling. So many traders are gambling thinking they are actually trading in the market.
For us to trade successfully in the market, we need to make sure that we trade with risk management which involves using stop loses, take profits and others to make money from the market.

[Macro Exchange]

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?

Risk management is key in trading, and your friend’s experience proves it. The best advice? Always set both stop-loss and take-profit levels—that’s the real key to staying in the game. Teach him proper risk control, position sizing, and the importance of discipline. Trading isn’t just about making profits; it’s about protecting your capital to trade another day.

[passwordnow]

Now, he's back to learn from me. What advice should I give him?

Start small and avoid futures.
That's the best tip that you can give to your friend if he has no idea of what he's doing. Learning from YouTube videos are fine but that's not enough for futures trading. It's a combination of many factors and experience will tell more for that friend of yours. That's why even if the others are lurking here, you shouldn't get into futures with that $1k. That's a huge amount to lose unless you're prince of saudi or sort of royalty where you are or simply rich.

[CroverNo01]

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?

Before opening a trade, it's mandatory to setup a SL and TP because they're the features to depend when trade are either going your direction or against it. We can keep complaining but that doesn't stop the fact that we need more time to be sitting round the table with smiling faces and hopeful for the market.

Liquidation is the worst thing that can happen to anyone in the market. OP you have already answered that particular question yourself. There's nothing more to give him other than guiding him on the right track, we know how broad the market have become and there's not a chance we should become reluctant. He should always setup SL if he's craving to learn more things about the market.

[TastyChillySauce00]

You can always set up an isolated margin account and if it gets liquidated you won't lose all your money.

the problem with liquidation that I faced is that sometime exchange force liquidation when the margin was supposed still able to mantain the position to certain extent for some reason, maybe because fee or whatever it is, I don't know but with SL
it's more accurate and there's no such thing unfair trade like that.

[wakier]

Historically it is better to touch SL than to be liquidated but it's just that when we trade and always set SL we will continue to touch it and after that our desire for TP is achieved but it's useless if it has touched SL, I myself am also quite annoyed if I have to set SL but only touch it not really reversing direction. But now I have a little understanding of how not to continue to experience losses, for example with capital (min $ 200) but setting a small price (max $ 15) and leverage is not too high (max 10x) that is quite far from liquidity and I have applied this even though sometimes the price reverses direction but I'm not too worried because the price is likely to return to its original state and receive profit but we also have to be patient waiting until the desired price is reached, yes even though the profit is not too big but it is enough to secure the mentality so as not to be too anxious when trading futures.

[Iamcrypticguy]

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?

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??