This Trader is currently losing about $500,000 on his futures position and we decided to analyze his mistakes

First of all, the leverage he used here was too much, With 40× cross margin on a $120K account, the trader put on a $4.8 million position, That means a ~2% adverse move wipes out the entire margin

Now, we can also see he set a take profit at $82,300 but no stop loss, this brings room for unlimited upside risk.

He also made use of Cross Margin, Cross uses your entire balance to sustain margin, so this one bad trade threatens the whole account.

Can you guess another mistake this trader made ?

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We will keep dropping more analysis like this, so you can learn from other people’s mistakes