How much capital do you have?

💰 The golden rules of capital management in Futures

1️⃣ ❗ Maximum risk per trade = 1-2% of the account
Example: Account has $1000
→ Each trade should only accept a maximum loss of $10 - $20 if incorrect.

This is the "survival" principle of professional traders to avoid blowing up their accounts after a few wrong trades.

2️⃣ 📏 How to calculate the trade volume
Formula:
Trade volume = (Amount of acceptable risk) / (Distance from entry point to Stop Loss)

▶️ Example:
👉 Account: $1000
Risk 2% = $20
Entry point: 100
Stop Loss: 98 → Risk per unit: $2
→ Therefore, you can only enter $20 / $2 = 10 units.

3️⃣ 🧮 How much leverage is enough?
👉 Newbie: x2 → x5
👉 Average trader: x5 → x10
👉 Pro: depending on strategy, but rarely anyone uses > x20 sustainably
👉 Higher leverage = Lower tolerance = Easier to get stopped out.

4️⃣ 🔥 No "All-in", no "Double-down"

👉 Don’t put all your money into one trade, no matter how sure you are.
👉 Wrong on 1 trade, lose 90% of the account → no chance to recover.

5️⃣ 📉 Always set Stop Loss (SL)

👉 No SL = let the market decide your fate.
👉 Set SL reasonably, not too close (easy to get stopped out), not too far (lose a lot).

6️⃣ 📊 Calculate the Risk/Reward ratio (R:R)

The minimum should be 1:2
→ Meaning: accept a loss of $10 to expect a gain of $20.

With a reasonable R:R, even if you win 40% of the trades, you can still be profitable.

✅ Checklist before entering a trade
✅ Question: Have you done it?
✅ Have you calculated the % risk of the trade?
✅ / ❌ Have you determined the entry point, SL, TP?
✅ / ❌ Is the trade volume appropriate?
✅ / ❌ Are you entering the trade according to the plan, not FOMO?