Managing Positions When Trading Futures: Survival Principles

Futures trading or perpetual trading is not for the faint of discipline. In this playground, you don’t lose because the market is “evil,” but because of how you manage your own positions. Here are the core principles to help you survive and go the distance, not focusing on basic knowledge, but on order management.

1. No Stoploss = No Plan Every trade must have a stoploss or an invalidation point. Entering a trade without knowing where you’ll cut means you’re leaving your account to chance. The market owes you nothing.
2. Always Have a Clear Risk-Reward Plan A trade is only worth taking if the potential profit outweighs the risk. The common rule is a minimum RR of 1:2. If you accept a $10 risk, your profit target should be at least $20. If this ratio isn’t met, it’s best to skip.
3. Never Let the Order Be Liquidated Liquidation is not the same as stoploss. If your stoploss point is your liquidation level, then you almost certainly have no plan, just betting with high leverage. A disciplined trader will proactively exit the trade, not wait for the market to “kill” them.
4. Limit Leverage: 3x–5x Is Enough Crypto is very volatile. Just one unexpected candle can wipe out your account if you’re using high leverage. Low leverage gives you room to breathe, keeps your head cool, and prevents being eliminated too early.
5. Don’t Trade Against the Trend The trend is your ally, not your enemy. Trading against the trend may win a few times, but in the long run, it will erode your account. Learn to go with the flow instead of trying to prove you’re right.
6. Enter Trades Only With Confirmation Futures require discipline and precision. Don’t enter a trade based on feelings, fear of missing out, or because others are showing profits. Each trade needs a clear confirmation signal according to your system.
7. Absolutely No DCA Into Losing Trades DCA in futures when the trade is in the red is one of the most dangerous mistakes. You’re increasing risk on a wrong idea. Small stoploss cuts are always better than hoping for a big comeback. Conclusion Futures trading is not about getting rich quickly; it’s a test of discipline, risk management, and psychology. Only those who survive long enough have a chance to win. Respect the market, protect your capital first, and profits will follow.