How to Control Greed and Fear in Futures Trading (The image is an example of greed. When you are on a winning streak, greed will push you to the extreme of complacency and subjectivity.... Turning profits into losses)
a. Develop a trading plan before each trade
Clearly define: entry point, stop-loss point, take-profit point, appropriate volume, and leverage.
Do not change the plan just because of emotions.
b. Strict risk management
Never risk more than 1-2% of the account per trade.
Leverage should be used flexibly: day trading should not exceed 10-15x, while swing trading should only be below 5x.
c. Keep a trading journal
Record all winning trades, losing trades, and the reasons for entering/exiting trades.
Self-evaluate the behavior influenced by emotions: greed or fear.
d. Meditate – Focus – Rest
Keep your mind clear by limiting the number of trading hours each day.
When emotions are too strong, turning off the screen – exiting the application – taking a break is essential.