[#Futures Rule NumberāÆ6] Dissolve Risk Over Time, Not All at Once
Impulse averaging downābuying more when the market dropsāmight feel clever, but if the trend continues against you, it guarantees liquidation. Discipline isnāt about reacting fast; itās about managing exposure across time.
Instead of dumping all your cash into a falling trade, scale in small amounts over time or avoid chasing "bargains." This smooths out risk and avoids catastrophic blowups.
Always account for volatility in your risk planāpredefine your entry, stop-loss, and position size, and stick to it consistently. Let time be your ally, not your enemy.
[#Futures Rule Number 5] Habituate taking profits off the table Whenever you hit a solid gain (e.g., 5ā10%), transfer that portion to a separate account or wallet so itās no longer at risk
This prevents overtrading or revenge trading with your winningsālocking in gains protects your capital and psychological balance.
Allocate just enough in your trading account to cover your risk tolerance and keep the rest secureāconsider leaving only 20ā50% of profits in the traderās account and withdrawing the rest.
I always withdraw 50% of my profit of the week every Friday.
Remember. The funds on an exchange arenāt truly yours until you withdraw them.
[#Futures Rule Number 4] Try Not to Hold Your Position Overnight
Overnight holds expose you to unpredictable movesāleverage can trigger margin calls or sudden liquidations if the market shifts against you while you're asleep.
You can respond to price movements and lock in gains when you're actively watchingābut overnight, those safety nets vanish and losses can balloon.
If you absolutely must hold past market hours, keep leverage at 1Ć or less to minimize risk exposure.
Remember. If you survive, you will be rich. Don't take unnecessary risks.
[#Futures rule number 1] Patience is a trader's greatest asset. Never be impatient opening the position. Rushed entries often ignore support/resistance and proper stop-loss placement, increasing risk unnecessarily! Never jump in due to FOMO