HOW TO MAXIMIZE PROFITS TRADING FUTURES AND SPOT DURING THIS BULL RUN. 2
5. Use Stop-Losses to Protect Capital
Set Stop-Loss Orders: In a bull run, prices can be volatile. Protect your capital with stop-loss orders placed below key support levels or trend lines. This ensures that you're protected from sudden reversals.
Adjust Stops: As the market moves higher, adjust your stop-loss orders accordingly. Trailing stop-losses can help lock in profits while allowing your positions to grow in a rising market.
6.Diversify Positions
Trade Multiple Markets: A bull run might not be limited to a single asset class. Consider trading futures across different asset classes like equity indices, commodities, and currencies. Diversifying your portfolio can reduce risk.
Non-Correlated Assets: Balance your bullish positions with non-correlated futures. For instance, while holding long positions in equity futures, you might hold positions in commodity futures like gold as a hedge.
7. Avoid Overtrading
Patience Is Key: In a bull market, it’s easy to get overconfident. Avoid the temptation to overtrade or chase every price increase. Stick to your trading plan and wait for setups with a favorable risk-to-reward ratio.
Limit Trades: Rather than trying to capture every small move, focus on major trends and high-probability trades.
8.Manage Risks Wisely
Risk Management: Stick to a consistent risk management plan where you risk a small percentage (e.g., 1-2%) of your account per trade
11. Exit Strategy
Know When to Exit: A bull run won’t last forever. Have a clear exit strategy for your trades, such as exiting when a key resistance level is hit or when technical indicators signal the end of the uptrend.
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