📌 New series: 10 days — 10 rules of futures trading
Futures trading isn’t dangerous because of leverage.
It’s dangerous because of poor risk control.
Today’s rule addresses one of the biggest misconceptions 👇
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Day 3 / 10
Leverage doesn’t kill accounts. Poor position sizing does.
Many traders believe:
“High leverage is risky.”
In reality, leverage itself is neutral.
It doesn’t define risk — position size does.
What actually determines your risk:
• distance to the stop loss
• position size
• percentage of capital at risk
You can:
• trade with 20x leverage
• risk 1% per trade
• and survive losing streaks
Or you can:
• trade with 3x leverage
• oversize your position
• and lose your account in a few trades
Professional logic is always the same:
1. define the stop loss first
2. decide how much capital you’re willing to risk
3. calculate position size based on that risk
Never the other way around.
Leverage is just a tool.
Risk management is the real edge.
Conclusion:
Leverage isn’t the enemy.
Lack of control is.
Next post:
why partial entries reduce stress
and improve execution quality.
#FutureTarding #Binance