But before I fully switch, I’m wondering if there’s a way to manage or hedge against this kind of volatility while still trading futures. Is there a smart way to protect my trades or reduce the risk? Any advice would really help.
I rarely trade futures. However, I sometimes enter when market conditions truly look easy enough for me to exploit. However, I rarely use leverage above 20x. My maximum limit is only 10x. I also employ fairly strict risk management. I set stop-loss and take-profit orders from the start, as I've calculated my acceptable loss limit. I've also determined the profit percentage I want to take. This way, I can feel more at ease even if I don't open the market after my position is filled. By setting stop-loss and take-profit orders, I believe market volatility won't surprise or panic us, as we're prepared for it. So, my advice is to reduce your leverage and employ fairly strict risk management. However, it's best to avoid markets where price movements are still difficult to analyze.
In unpredictable market conditions, I find spot trading much more comfortable. Although it does require more patience to generate profits, the risks involved are not too great and won't affect our psychology.