Review: two liquidations and revenge trading in one day

8 min read · A real day from a demo account: three losing trades in a row, −$242. What went wrong, step by step.

Level:

Short version for experts: tables, lists and screenshots only.

Words in this lesson (9)

Long — Buying in the hope that the price will rise. Buy lower, sell higher.

Stop — A price chosen in advance at which the trade is closed at a loss, so the loss doesn't grow bigger.

Leverage — Money borrowed from the exchange. With 10x leverage, your $100 opens a $1,000 position: both profit and loss are ten times bigger.

Margin — Your own money that the exchange locks as collateral for a leveraged position.

Liquidation — The exchange force-closes a position when the loss has eaten all the collateral. The collateral is lost.

Volume — How much money or how many units changed hands over a period. A move on high volume is more reliable than one on low volume.

Limit order — An order to "buy or sell at my price or better". It can wait in the order book and may never fill.

Position — An open trade: what you have bought or sold and haven't closed yet.

DEMO — The DEMO account in MAMAY: prices and fees are real, orders don't go to the exchange, and no real money is at risk.

Where this example comes from

These are trades by the author of MAMAY in DEMO mode: the money isn't real, but the prices and the mistakes are. We're not going through them to scold anyone, but because this is exactly what a typical bad day looks like.

What happened

Time	Action	Size	Result
11:08	long the US coin at 0.02587, a limit order, no stop	about $1,018
11:12	long MAGIC at 0.11627, a limit order, no stop	about $1,083
11:24	MAGIC: liquidation at 0.10522		−$103.41 in 11 minutes
12:22	US: liquidation at 0.02341		−$97.26 in 1 h 14 min
12:56	long US again at 0.02327, no stop in the order	about $500
17:06	US closed by the stop at 0.02135		−$41.49 in 4 h 10 min

The day's result: −$242.16.

Mistake 1. Entering without a stop

Both first trades were opened without a stop price. With no stop, the liquidation price became the stop.

Both positions closed on a −9.5% move. That means the leverage was about 10x: with 10x leverage, a move of about 10% against you takes all the margin.

How it should have been. A 1% risk on a $2,000 account is $20. The stop 3% from the entry. Size = 20 ÷ 0.03 = $667, not $1,083. The loss at the stop — $20, not $103.

Mistake 2. Two identical bets at the same time

US and MAGIC were bought four minutes apart, both long, both for about $1,000. When the market went down, both fell. Two positions in the same direction on similar coins are one position of double size, not two different ideas.

Mistake 3. Entering 34 minutes after a liquidation

At 12:22 US was liquidated. At 12:56 — long the same US again. The same coin, the same side, right after a loss on it.

The market had just shown that the idea "US will go up" wasn't working. Entering again isn't a new idea, it's the urge to win back what was lost. The result — another −$41.

There's one good thing about this trade: the size was half as big, and a stop did appear (later, after the entry). So the loss was $41, not $97.

What should have stopped it

Rule	Where it would have worked
No stop — no entry	at 11:08, before the first trade
No more than one position in the same direction on similar coins	at 11:12
After a loss — an hour's pause	at 12:56
Two losses in a row — stop for the day	at 12:22

How MAMAY helps you not repeat it

The "Accept scenario" button moves the entry, the stop and the target into the trading panel at once.
"Size by risk" calculates the position size from the stop, not "by eye".
The panel warns you if a scenario has no stop: "set one yourself, don't enter without a stop".
"My trades: review" will show these three trades under the "Liquidations", "Entry right after a loss" and "Repeating the same idea" findings.

The main takeaway: the market didn't cause the $242 loss. The market made a 9.5% move. The loss came from having no stop, double size and re-entering.

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