The Importance of Position Management in Futures Trading

After three years of trading futures, the biggest lesson I've learned is about position management.

In 2022, I went all-in on ETH with 10x leverage, only to face the LUNA collapse, resulting in a total liquidation overnight and an 80% loss of my principal.

• Single Trade Risk Control
  • Maximum loss per trade should not exceed 2% of total capital.
  • Example: With a principal of 10,000 USDT, the maximum loss per trade is 200 USDT.
• Leverage Selection
  • Day trading: 5-10x
  • Swing trading: 3-5x
  • Trend trading: 2-3x
• Position Calculation Formula

  Position = Risk Amount / (Entry Price × Stop Loss Percentage)

• Gradual Position Building
  • Avoid going all-in at once.
  • Build positions in 2-3 batches.
  • Leave room for additional investments.

Staying alive is more important than making money!
Risk control comes first!

I hope everyone can survive in the futures market.