Feels very useful, borrowed some ideas from others.

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 trade risk control: The risk of each transaction should be kept within 1%-2% of the total capital to avoid excessive losses in a single trade.
Total Risk Control: The total risk of Position usually does not exceed 5%-10% of the total capital, to prevent excessive losses during market fluctuations.
2. Allocate Positions reasonably
Diversified investment: Avoid putting all funds into a single contract, diversify into different varieties or markets to reduce risk. (Contracts + spot + dollar-cost averaging strategy + automatic trading quantification strategy for combined investment)
Building Positions in Batches: Avoiding full position in one go, building positions in batches helps to reduce risk and capture more opportunities.
3. Use leverage with caution
Low leverage operation: Although high leverage can amplify profits, it also increases risks. It is recommended for retail investors to use lower leverage. Sister Happiness, with many years of trading experience, always recommends using 10 times leverage or less, and beginners to start practicing with 2-3 times leverage.
Isolated Margin Mode: By using isolated margin mode, the risk of liquidation under cross margin mode is avoided. (In extreme market conditions, stop-loss orders may not be triggered, resulting in significant losses.) Do not assume that setting a stop-loss order in cross margin mode can guarantee peace of mind.
4. Set Take Profit and Stop Loss
Stop Loss: Stop loss should be set for every trade to prevent further losses. (The maximum stop loss should not exceed the initial margin)
Take profit: Take profit in time when the expected profit target is reached, (50%-80% of the expected profit is taken out of the warehouse, and the remaining 20% Position will consider a larger space layout) to avoid market reversal leading to profit rollback.
5. Adjusting Position Dynamically
Profit Adding: When the trade is profitable and the trend is clear, you can appropriately add to the position, but you need to control the total position risk.
Loss reduction: When trading is in a loss and the trend is unfavorable, timely reduce positions or close them to avoid further losses.
6. Maintain liquidity
Reserved funds: Reserving 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, should be avoided.
7. Emotional Management
Avoid emotional trading: stay calm and avoid making irrational decisions due to greed or fear.
Strictly implement the plan: After formulating the trading plan, it should be strictly implemented 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.
Market Study: 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 executing trading plans. Through scientific position management, retail investors can better cope with market fluctuations in contract trading, and enhance their long-term profitability. It is a big taboo to hold a contract, which is a high-voltage line that should not be touched.