Being liquidated isn't easy to deal with. I usually trade with no leverage because I know I can't predict my trades and I do not know what the market is going to do and something unpredictable might suddenly happen that could change the market sentiments.
I guess, trading on leverage is quite tempting at times because of the high amount of returns if we do get our predictions right.
If any correction occurs and our total investment value drops maybe by 10 to 20 %, the best action to deal with this from my own experience, is to set a stop limit, hodl on strong or just take a break. Follow through the plan. The most important tip is not to sell low and later when the market recovers, we have to buy high due to FOMO.
Currently, Bitcoin has broken its all time high, and retraced significantly, but from what we can understand from past bull markets, these corrections are pretty normal and healthy to keep the bubble popping to prevent it from becoming a gigantic bubble that if it burst so sudden, everyone would get rekt.
From the price graph of Bitcoin's price, till its current retracement, there are alot of retracements along the way. It is not easy to be able to know when they could suddenly just come even when the support and resistance line are drawn as guides to where the price action could be. Sometimes, when I wake up in the morning, the market has already gone up significantly and just a day later, it can go down significantly but there is nothing that goes up constantly or goes down constantly. Everything usually balances out. After this retracement, Bitcoin is going to retest its all time high again and it may need three attempts to be able to break through that resistance level giving some room for Ethereum and the other alt coins some time to do some catch up.
If you do not want to feel the pain of getting liquidated, just Hodl it and only have a portion of your porfolio for trading.
