STUDY TIME 📑📑📑
It’s very important for newbie traders & those trading in the futures market.
Stay consistent by:
📒Always makin' a trading plan before entering
📒Only risking 1%–5% of your capital per entry
📒Calculating proper risk management
📒Always knowing your TP (Take Profit) & SL (Stop Loss) spots
That way, you can win in the futures market.
Why tho?
🔸You avoid huge losses
🔸No risk of getting liquidated
🔸Still make $$ even with a low win rate
📑 Example of Risk Management:
Your win rate is 40% Win : 60% Loss (out of 10 trades)
- Each loss = $50
- Each win = $100
Wins: 4 × $100 = $400
Losses: 6 × $50 = $300
Total profit = $400 - $300 = $100
You’re still up $100 even with more losses than wins. That’s with a risk-reward ratio of 1:2.
Now imagine if your RR is 1:3 or higher—your profit gets even better.
Wanna know why your entry size should be max 1-5% of your capital?
Drop a "LETS GO" in the comments and I’ll break it down for you next !