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.