Avoid accumulating losses while trading futures contracts. It is important to avoid increasing the size of your position in a losing trade.
If you have already invested in a contract and its value has fallen, you should not invest more in the same contract.
Adding more to a losing trade will reduce the liquidation price and increase the chance of liquidation.
Traders should focus on risk management and reducing their losses by closing losing trades rather than trying to mitigate them through averaging down or adding more contracts.
It is essential to create a trading plan and stick to it, while avoiding impulsive decisions that could lead to significant losses.