In Futures Trading, Position management is crucial for retail investor, and proper Position management can effectively control risks and enhance returns. Here are some key suggestions:↓↓↓

1. Set Risk Tolerance
Single Risk Control: The risk of each transaction should be controlled within 1%-2% of the total capital to avoid excessive single loss.
Total risk control: The total Position risk typically does not exceed 5%-10% of the total capital, to prevent excessive losses during market volatility.
2. Reasonable allocation Position
Diversified investment: Avoid putting all funds into a single contract, instead diversify into different varieties or markets to reduce risk. (Contracts+Spot+Dollar Cost Averaging strategy+Automated trading quantitative strategy for combined investment)
Building Positions in Batches: Avoiding full-position investment at once, building positions in batches helps to reduce risks and capture more opportunities.
3. Use leverage with caution
Low leverage operation: Although high leverage can amplify profits, it can also increase risks. It is recommended that retail investors use lower leverage. Sister Xingfu's years of trading experience always recommend using 10 times leverage or below, and beginners should start practicing with 2-3 times leverage.
Isolated Margin Mode: Use isolated margin mode to avoid the risk of liquidation in cross margin mode. (In extreme market conditions, even if a stop loss is set, it may not be triggered, resulting in significant losses). Do not assume that setting a stop loss in cross margin mode will guarantee a worry-free experience.
4. Set Take Profit and Stop Loss
Stop Loss: A stop loss should be set for each trade to prevent further losses. (The maximum stop loss should not exceed the initial margin)
Take profit: When the expected profit target is reached, take profit in time (50%-80% of the profit reaches the expected position, and the remaining 20%Position should consider a larger space to avoid profit being eroded by market reversal).
5. Dynamically Adjust Position
Profit Adding: When the trade is profitable and the trend is clear, you can consider adding positions, but the total Position risk needs to be controlled.
Cutting Losses: When trading at a loss and the trend is unfavorable, promptly reduce positions or close them to avoid further losses.
6. Maintain liquidity
Reserved Funds: Reserve a portion of funds to cope with market fluctuations, avoiding forced liquidation due to insufficient funds.
Avoid overtrading: Frequent trading will increase costs and risks, which should be avoided.
7. Emotional Management
Avoid emotional trading: Stay calm and avoid making irrational decisions due to greed or fear.
Strictly follow the plan: After formulating a trading plan, it should be strictly followed to avoid arbitrary changes.
8. Continuous Learning and Review
Summary of experience: Regularly review trades, analyze the reasons for success and failure, and continuously optimize strategies.
Learning Market: Pay attention to market trends and improve understanding and judgment of the market.
Summary
The core of Position management lies in controlling risks, allocating funds reasonably, using leverage prudently, and strictly adhering to trading plans. Through scientific Position management, retail investors can better cope with market fluctuations in Futures Trading and enhance long-term profitability. Holding positions is a big taboo, which is a high-voltage line not to touch. If you still don't have a clear idea and need an experienced guide, feel free to follow Sister Xingfu and tune in to my live stream from 8:30 to 11:30 every Monday to Friday.