/biz/ - Business & Finance

FUTURES NOOBS, STOP HERE

Have you got a futures position open? Take 5min to go through this checklist:

>Why am I doing this in the first place?
Is it to try and make it? Sense of urgency? Remember, you've just entered a bull market. There's no rush, a 4-10x over the course of a year is a serious and respectable amount of profit.

>Am I trying to get back losses I have already incurred?
Sorry to hear this. You're chasing losses. Please close your position, or you will never stop. You'll likely carry on making desperate and impulsive trades, which will wipe you out.
Enjoy what you still have, because you will more than likely lose a LOT more than you're willing to whilst chasing those losses. Maybe even take a minute to put yourself in that position; how would you feel if you DID lose your stake?

>Have I gambled <10% of my portfolio?
If yes, get out. Set a smaller position, there's no rush to make a profit.

>Have I set a stop-loss?
If not, then the amount of risk you're setting yourself up for will wipe your account out within 5-6 trades.

>Am I in profit?
If yes, great. Remember to take half of your position, and set a stop-loss at your entry price.
If not, then hopefully your stop-loss will trigger. If you haven't got a stop-loss on, or if you've gone past your stop-loss trigger/down 2-5% then CLOSE your position. It's much easier to recover from a 2% loss than it is from a 30-100% loss.

>Do I have a trading strategy, and is it feasible?
Check your strategy on winrate.io. It will help you see what your potential losses could be, and it could even help you set up a more sensible, and favourable strategy.

>Why are you even making me fucking stop to read this?
Assuming you've answered yes to one or more of the questions above, then I was in the same boat as yourself. Your losses aren't worth gaining back. If you chanced $10 and lost it, then great. Accept that loss, and never look back at it. You'll lose a shitload more trying to get that $10 back.