PRINCIPLES WHEN ENTERING A FUTURES ORDER
1. Identify the main trend (Trend)
• Before entering an order, you need to know whether the market is in an uptrend, downtrend, or sideways.
• Following the larger trend will increase the probability of winning: buy in an uptrend, sell in a downtrend.
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2. Set the entry point (Entry)
• Do not rush to enter an order as soon as the market changes.
• Wait for a pullback, retest a key level, or a breakout with confirmed volume.
• Use support/resistance levels, Fibonacci, or MA to determine the entry.
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3. Risk management (Risk Management)
• Only use 1-2% of capital for one order (total capital).
• Always set a stop loss immediately when entering an order.
• Determine a reasonable Risk/Reward (R:R) ratio, usually ≥ 1:2 or 1:3.
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4. Determine profit target (Take Profit)
• Set take profit based on resistance/support levels, pivots, or Fibonacci extensions.
• Do not be greedy; take profit when conditions are met.
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5. Use leverage wisely
• Futures often allow for high leverage, but higher leverage → greater risk.
• Only use leverage you can afford to lose 100%.
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6. Control emotions
• Do not FOMO (Fear of Missing Out).
• Do not revenge trade (recklessly trying to recover losses).
• Discipline is key; adhere to the entry, stop loss, and take profit set.
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7. Monitor news and events
• Futures orders are often sensitive to economic announcements, Fed, CPI, or major events.
• Avoid entering orders right before important news if you are not accustomed to high volatility.
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8. Use technical analysis + volume
• Check volume to confirm a breakout or reversal.
• Combine with indicators like RSI, MACD, VWAP to increase reliability.
