How to Set Stop-Loss Properly in Futures Trading
A stop-loss is one of the most important tools for protecting capital in futures trading. It automatically closes a trade if the market moves against your position.
Beginners often place stop-loss randomly or too close to the entry price. Instead, it is better to place it near logical support or resistance levels, where the trade idea becomes invalid.
Another important rule is to keep risk small. Many traders risk only a small percentage of their capital on a single trade to stay safe during market volatility.
Using a proper stop-loss removes emotional decisions and helps traders stay disciplined. In futures trading, protecting capital is always the first priority.
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