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Many people enter the futures market and often think of it as too simple. In fact, the requirements for mentality and discipline in this market are much more stringent than imagined.
There's one thing worth mentioning—someone entered 7 years ago with $4,000 and now has an eight-figure account. This is not luck, but because they have mastered a methodology of "staying alive and continuing to play."
Their operation mode is as follows: start with $1,000 to test the waters, investing only $300 each time into 100x leverage contracts. This leverage tool is extremely aggressive—when the market is favorable, a 1% move can double your position, but in the opposite direction, you can be wiped out overnight. Because of this, they summarized 5 rules that must be followed.
**Rule 1: Cut losses immediately at the stop-loss level, don’t hope for a rebound.** The most common mistake beginners make is holding on after being caught, always thinking a rebound will solve the problem. But the market doesn’t show mercy; waiting only makes losses grow. Cut losses in time; surviving is the only way to turn things around.
**Rule 2: After 5 consecutive wrong trades, close the software and take a break.** Sometimes the market just has no logic, fluctuating chaotically. Continuing to push in such conditions will only crush your mentality. Set a red line: after 5 wrong trades, rest for a day. Often, the pitfalls from the previous day will be automatically filled after a night’s rest.
**Rule 3: Withdraw more than half of the profit once you reach $500U.** The numbers in your account look good, but they are just numbers. The market can turn faster than flipping a page. When profits reach $500U, withdraw at least 50% to secure the gains.
**Rule 4: Only trade in trending markets; lie flat during sideways movements.** When the trend is clear, 100x leverage can help you rise rapidly; but in choppy zones, it becomes a harvesting tool. Do not act without a clear direction—that’s the mark of professionalism.
**Rule 5: Never risk more than 10% of your principal on a single position.** Going all-in is like a gambler’s mindset. Controlling your position size allows you to handle extreme market conditions with ease. Going all-in is like stuffing 10 plates on a buffet—eventually, one will make you uncomfortable.
The logic behind these rules is actually very simple: risk management always comes first. The allure of leveraged contracts is strong, but those who survive are always the most disciplined.