5 Mistakes to Avoid When Trading Futures(My Personal Experience)

Hi everybody🫶

Many of You have been asking about trading futures! So, I decided to write a post about the mistakes I’ve made in futures trading and how to avoid them. Of course, everyone has their own journey and will make their own mistakes, but learning from someone else’s experience can be incredibly valuable too!

Trading futures can be highly rewarding, but it also carries significant risks. Based on my own experience, here are five common mistakes I made and how to avoid them:

https://www.tradingview.com/x/ypKAcmWH/

1. Ignoring Stop-Losses
Mistake:
Many traders skip setting stop-losses, hoping the price will reverse in their favor. This can lead to devastating losses.

How to avoid it:
Always set stop-losses before entering a trade. They are a simple yet effective way to limit losses. If you're worried about stop-hunts, place them considering market volatility or use trailing stops.

2. Overusing Leverage
Mistake:
High leverage can amplify profits, but it also significantly increases potential losses, especially in volatile markets.

How to avoid it:
Use minimal leverage, particularly if you're a beginner. Calculate your position size so that any potential loss does not exceed 1-2% of your capital per trade.

3. Trading Without a Clear Plan
Mistake:
Trading based on emotions or intuition often leads to chaotic decisions and loss of capital.

How to avoid it:
Develop and stick to a clear trading plan. Define your entry and exit points, position size, and risk levels before opening a trade. Regularly review and analyze your results.

4. Neglecting Risk Management
Mistake:
Putting too much capital into a single trade or failing to account for market volatility can result in substantial losses.

How to avoid it:
Diversify your positions and follow the rule: never risk more than 2% of your total capital at once. Assess current market volatility and adjust your position size accordingly.

5. Letting Emotions Drive Your Trades
Mistake:
Greed, fear, or the urge to "get even" can lead to impulsive and poorly thought-out decisions.

How to avoid it:
Stick to your pre-defined strategy instead of reacting emotionally. If you feel emotions taking over, take a break. Trading requires discipline and a calm mindset.

Avoiding these mistakes and following these tips, which come from my personal experience, can help you reduce risks and improve your chances of success in futures trading. Remember, the market is always full of opportunities, stay calm to catch them!

Thank You for staying with me

Sincerely yours,
Kateryna💋