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Growing from a few thousand to a million-level capital in this market where profits come quickly and losses come even faster is really not about luck. There is a strict set of discipline behind it—survive first, then talk about making money.
Contract leverage is like a double-edged sword. When used well, small funds can leverage large gains; when used poorly, a wrong direction can wipe out your principal. My own approach is quite aggressive—small positions, ultra-light leverage, high multiples. If I bet right, profits soar; if I bet wrong, I cut losses decisively. But no matter when, rules always come first.
Over the years, I’ve explored five life-and-death lines, each learned through real lessons paid in hard cash:
**1. Stop-loss cannot be delayed; admitting loss is survival**
The stop-loss line is your escape route. When reached, it must be executed immediately—no reaction time. Many think "maybe it will rebound if I wait," but in the end, they get liquidated. The market won't change direction because of your hopes; acknowledging small losses can help you avoid big pits.
**2. Stop after two or three consecutive losses**
When you keep losing, it means you haven't grasped the market rhythm yet. Continuing to trade at this point only makes things worse. Just close the trading app and force yourself to cool down. Sometimes, doing nothing is the smartest move.
**3. Withdraw the profits you make**
The numbers in your account are just figures; only profits transferred to your wallet count. Every time I reach a profit target, I forcibly withdraw at least 30%. Profits that are not taken out will eventually be returned to the market.
**4. Only trade in trends; stay in cash during sideways markets**
In trending markets, leverage is like wings, helping you soar. But in choppy, consolidating markets, leverage becomes a knife that can cut you back. When the direction is unclear, I prefer to stay in cash and wait rather than consume my principal and energy in oscillations.
**5. Control single trade position at 5%-10% of total funds**
Only when you can afford to lose can you stay clear-headed and make rational judgments. If your position is too heavy, fear and greed will take over your operations, often ending in being trapped or liquidated.
Futures trading is not a shortcut; it’s a real survival contest. Many only realize the value of these rules after being liquidated. Incorporate these five principles into every opening and closing of your trades, and you’ll have a better chance to survive longer and earn more steadily. The market is always there, but your capital isn’t necessarily. Survive first, then talk about profits—this is the most straightforward truth of futures trading.