A Day of Liquidation Changed the Way I Trade Forever

If it weren’t for that liquidation day, I might still be just a factory worker, living a safe but limited life. The market that day, I will never forget. That day, everything seemed to be on my side. Three consecutive orders were all correct. At one point, my account was nearly 20% in profit. The exhilaration started to surge, my mind grew hot, and my hands itched to place more trades. I knew very well my risk management principles: Each trade risks a maximum of 2% of the account. But at that exact moment, I convinced myself with a dangerously reckless thought: “The market is too smooth, surely there won’t be any mistakes.” And then I broke my own rules. I entered a larger position, increased leverage, all-in with the belief that I was “catching the wave.” Initially, the price indeed moved in the direction I predicted. I started dreaming of doubling my account, even took a screenshot, planning to post it on Instagram and show off to friends. You probably can guess the outcome. A major news announcement was suddenly made. The market reversed strongly. My stop loss was set incorrectly, with severe slippage. In just a few short minutes, my account went from +20% to completely wiped out. That night, I sat alone in front of the computer screen for three hours straight, saying nothing. What I felt then was not exactly regret, but an emptiness. I had lost money before, but never in such a complete way. This time, I didn’t just lose capital. I lost confidence, composure, and most importantly, my trading principles. I started to wonder: “After more than a year of studying technical analysis, why did I still make such a basic mistake?” It took me a long time to find the answer. Because I was not truly learning how to become a trader. I was just chasing the quick way to make money. Experienced traders often say: Trading is a process of cultivating one’s character. Before, I found this phrase very vague, even a bit pretentious. But after that liquidation day, I truly understood. Trading is not a competition of who has better skills, but a contest of who can stay calm longer. From that day on, I made some life-or-death decisions: Always write a trading plan before entering a trade: clear, specific, no ambiguity, no over-optimization.
Accept losses: stop loss is stop loss, no tormenting myself, no revenge trading.
View trading as a profession, not a place to vent emotions or seek thrills again and again. Honestly, I still can’t call myself a “master” even now. But I know very well one thing: 👉 I am on the right path. And if this article helps you stop before breaking your own rules, then perhaps my liquidation that year was not entirely meaningless.