ktmAn-money

What is #Liquidation in #Futures trading?

Liquidation happens when your losses become too large

and the exchange automatically closes your position.

Why does this happen?

Because you are using #leverage .

The higher the leverage,

the smaller the move needed to liquidate you.

Leverage increases potential #profit .

It also increases #risk .

If you don’t understand liquidation,

you shouldn’t trade Futures yet.

Stop #trading without a Stop Loss

One of the biggest #beginner mistakes is entering a trade without a stop loss.

They think:

“I’ll close it manually.”

But when the market moves fast, emotions take control.

A stop loss is not optional.

It is your #protection .

Small controlled losses are part of professional trading.

Why emotions destroy most #trades

Fear makes you close winners too early.

Greed makes you hold losers too long.

#Successful traders don’t remove emotions — they manage them.

That’s why every trade should have:

A clear entry

A stop loss

A take profit

#Rules protect you when emotions take over.