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1. Psychological – Trading is inherently risky; futures traders should be aware that no trade has a guaranteed outcome. When you put a trade, you are correspondingly accepting the risk but that’s where the problem comes in. All of the traders are taking the risk but are they accepting that the trade has a non-guaranteed outcome? The answer is No. Consistent traders are aware that there is no sure profit or magic in trading. They embrace the risk where if they lose, it is okay for them because they know that there is no guaranteed outcome.
Trading psychology is an important factor affecting trading. Don't be overly greedy when trading, control your emotions and take due risks, use failure as a learning process and gain experience from it. Slowly accumulate more trading experience, there will always be a profitable day.
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3. Risk management – The reason why people blow their futures account in less than a year is that they have poor risk management. Always remember that it is not about how much money you make, but it is about how much money you don’t lose. Risk management helps us trader's accounts from losing all of our money. Through risk management, we can know if the trade is worth it or not.
In trading, risk management is very important. Many traders are constantly seeking higher profits while ignoring the high risks involved. Don't pursue getting rich overnight, you must have proper risk management to stop losses in time and minimize losses as much as possible.
