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89% of futures traders are liquidated in their first month. Here is what the 11% do differently. When I first started, I treated leverage like a volume knob on a stereo, cranking it up whenever I felt lucky. That recklessness cost me $5,400 in a single week—an expensive tuition fee that forced me to learn the rigid, cold logic of position sizing. If you aren't calculating your risk in dollar terms before clicking "buy," you aren't trading; you are gambling.

Let’s walk through the math using a $1,000 account. Your goal is to limit your total account risk to 1% per trade, meaning you lose $10 if the trade fails. You see a setup on $BTC at $60,000 and decide to go long with 10x leverage, placing your stop loss at $59,400....