$RDNT ⚠️ Risk Management Class: The SL and TP are Non-Negotiable.
Friends, we already know when to enter the market (thanks to the 4H/1H/15M maps). Now, let's move on to the most important part: protecting capital.
In futures, there are only two things we control: where we enter and where we exit.
1. The Stop Loss (SL): Your Mandatory Insurance
The Stop Loss is the most important tool for a trader. It is your emergency exit point.
What is it? It is the price at which the system automatically exits you from the trade to limit your loss if the market moves against you.
Why is it vital? If the price drops and you don't have an SL, you can lose your entire account. The SL tells you: "I accept that my idea failed and I will only lose, for example, $10".
Where to Place It? If you are going to buy (Long), the SL should always be placed below the last support or the last low that formed the correction on the 15-minute chart. If that support is broken, your buying idea is nullified.
2. The Take Profit (TP): The Price Where You Cash Out
The Take Profit is the level where you decide to lock in the profit. This is where discipline comes into play.
What is it? It is the price at which the system automatically sells to secure your profit when the market reaches your target.
Where to Place It? Your first logical target (TP) should be the previous high that the 4-hour chart is trying to break.
Rule 1:2: Before opening any trade, calculate: if you risk $1 for the SL, your target (TP) should be at least $2. Never risk more than you expect to gain.
Your mentality should be:
- Before buying, know where the SL is.
- Your target (TP) should be double what you risk in your SL. ⚠️ It also all depends on…. Everyone has their own strategy. The market is very unpredictable. ALWAYS DO YOUR OWN RESEARCH 😉❤️
📌 With the three maps and this risk management, you have the foundation to start trading futures responsibly.
#futuros