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Futures Trading Winning Strategies
Position management is the key to profitability. Each time you open a position, the margin should not exceed 10% of the total capital, and the leverage ratio should be controlled between 5-10 times for the best results. Many people believe that using high leverage can quickly make money, but in reality, a small fluctuation can lead to liquidation. Remember, preserving your principal is essential to continue trading.
Stop-loss is a standard tool for professional traders. For short trades, you should wait for the price to truly break below the support level before entering, setting the stop-loss within 5% above the resistance level; for long trades, you must wait for a clear trend reversal before entering, with the stop-loss placed within 2% below the support level. If you realize you are heading in the wrong direction, you must immediately accept the loss; stubbornly holding on will only increase the losses.
Patience is the highest-level trading strategy. If there are no obvious breakout signals, such as increased trading volume combined with price breaking through key levels, or the appearance of reliable reversal candlestick patterns, then it's best to remain in cash and wait. Frequent trading in a choppy market essentially means you're just paying transaction fees to the exchange. The opportunities that can really make money often require patient waiting.
Respond immediately when the market fluctuates. When encountering price gaps or severe market volatility, stop all trading actions at the first moment. Once the trend breaks, decisively reduce positions; never fantasize that the price will rebound. The market is always right; what we need to do is follow the trend.
Finally, it is important to understand that in Futures Trading, it is not about who is smarter, but who has more discipline. Those who can strictly implement capital management and risk control have already outperformed the vast majority of participants in the market. Remember, in this market, surviving longer is more important than making quick profits.