A Few Suggestions for Contract Trading

1️⃣

Don't think about getting rich quickly; contract trading is a slow process. If your win rate is decent, take your profits decisively each time, even though you might miss out on a big market move by leaving early. However, it also helps you avoid many trades that turn from profit to loss, and overall, you will still come out ahead.

2️⃣

Don't trade too frequently. Statistically, the more trades you make, the higher the probability of losing money. After winning, traders often get carried away and end up giving back their profits; that’s not worth it at all.

3️⃣

Never place an order when you can't understand the market. There's no other reason; just try it and you'll see that placing orders randomly often results in losses.

4️⃣

Use low leverage with a wide stop loss. This way, you have a higher margin for error and can avoid frequent automatic stop losses that could wipe out your funds. The leverage ratio affects the value of your position, and the value of the position determines the extent of your losses. So, it’s essential to use low leverage; high leverage and heavy positions are a surefire way to fail.

5️⃣

Focus on the number of wins, and don't fixate too much on the rare big market moves. After all, big moves are hard to come by; most market movements provide you with an opportunity to exit when you are in profit. Otherwise, your profits will likely be given back or even result in losses.