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.