In the futures market, the scariest thing is not the market itself, but stepping on a landmine.
In recent days, I have seen too many people continuously blow up, and the reason is all the same, stepping on those seemingly inconsequential but extremely deadly minefields.
I will clarify the few most lethal ones, those who avoid them will live longer.
1. Excessive leverage is the quickest way to die.
Many people start with 20, 50, or 100 times leverage, thinking they can turn things around quickly.
When the market shakes a bit, the account disappears immediately. To be honest, 3-5 times leverage is the stable ratio that can withstand volatility and provide you with adjustment space.
2. Not setting a stop-loss and relying on hard holding, thinking it will come back after waiting, not wanting to cut losses after losing so much.
The longer you wait, the more you lose, and in the end, you can only watch it blow up.
Set a stop-loss when opening a position, and after making a profit, move the stop-loss up with the trend to protect profits. This is the way to survive long-term.
3. Going all in is equivalent to a self-destruct button. No matter how good the market is, you can't go all in.
I have told countless people a very simple rule:
Single maximum position = Capital × 2% ÷ Leverage ratio.
For example, if you have 10,000 U and 10 times leverage, the maximum for one order is 200 U.
This way, if a sudden crash comes, you won't die.
4. Emotional trading is the most insidious landmine.
Chasing when it rises, cutting losses when it falls, a flurry of operations like a tiger, and in the end, you look at the account and find there are only a few U left.
Those who can consistently make money have written a plan in advance, act according to the rhythm, and are not bound by emotions.
5. Not understanding how the exchange’s late-night spikes occur.
Major news and extreme market conditions are the easiest to trigger stop-losses.
Mainstream exchanges + stop-loss + position control are the three basic life-saving essentials.
The futures market is not that mysterious; it is just cruel.
Those who can avoid landmines earn, while those who cannot will keep paying tuition.
Follow the rhythm and stick to the rules,
You will find that making money is not that difficult; the hard part is not letting yourself go astray.