9 Contract Survival Rules for Short-term Trading
1. Learn to wait. Contracts are like passing the parcel. After the emotions are high, there must be adjustments. After the panic, there will be a reversal. Using 20% of the opportunities to earn 80% of the profits is an irreversible law of the market.
2. Never hold a heavy position. A heavy position can easily make people emotional, and a vicious cycle may arise from this. But losses are normal. The key lies in mentality and finding new opportunities. To make a profit, you must first keep your qualifications.
3. Be cautious when buying. Don't be impulsive because of a straight rise. There are many opportunities in the big market. You must judge based on the comprehensive index and emotions.
4. Cut meat decisively. When it is not as expected, you should make a quick decision and never waste time on losses. Find new opportunities first.
5. You need to withdraw cash after making a big profit. A big profit often means that the market is frenzy and adjustments are coming. Timely withdrawals can clear the frenzy and add color to life.
6. Respect the market. Don't judge the market based on subjective assumptions. There is no need to stick to the direction that funds have not chosen. Investing in the direction recognized by the market is the right way.
7. Don't take over after the climax. The market has reached its climax, and the game of passing the parcel is about to end. Who is willing to take over the next day?
8. Try not to trade in the afternoon. The short-term situation in the morning is clear, and it is time to make a move. Streamline transactions and avoid unnecessary entanglement.
9. Insist on reflection and summary. Failure is not terrible, but what is terrible is to gain nothing. Let each failure become the basis for success, so that you can go further and further.