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.