Trading

To succeed in futures trading, follow these 9 essential rules:

1. Manage risk: Limit losses to 1-2% per trade to avoid significant damage.

2. Set stop-losses: Place stops where your trade idea fails to prevent total liquidation.

3. Monitor margin: Keep initial and maintenance margin levels above 100% to avoid forced closure.

4. Prioritize quality: Focus on well-planned trades rather than overtrading and excessive leverage.

5. Reload cautiously: Add margin sparingly and avoid throwing money at failing positions.

6. Keep leverage low: Manage leverage to minimize risk and avoid significant losses.

7. Beware volatility: Monitor news and indicators like ATR to reduce risk during extreme price swings.

8. Secure profits: Lock in gains before the market turns against you to avoid greed-driven losses.

9. Diversify and reserve: Keep 50% of capital in reserve and diversify positions to minimize risk.