Trading futures requires a disciplined approach to risk management. Here's my strategy for staying consistent:
Position Sizing: Never risk more than 1-2% of your portfolio on a single trade. This helps protect your capital even during losing streaks.
Stop Loss Discipline: Always set stop losses before entering trades. I typically use technical levels like support/resistance and keep my risk-reward ratio at minimum 1:2.
Market Analysis:
Check higher timeframes for overall trend
Confirm with volume profiles
Watch funding rates for potential squeeze situations
Risk Reduction Tips:
Start with small position sizes to test strategies
Use trailing stops to protect profits
Never chase trades out of FOMO
Keep detailed trading journal
Remember: Consistent small wins > Risky big trades