If brothers are trading contracts, spot, or swing trading, remember the following points!
1. Trading contracts is about risking a small amount for a large return; experiencing losses is normal. However, after hitting a stop loss, two types of people emerge: some will frantically place orders after a stop loss, while others will directly enter a cooling-off period. My advice is that if you encounter frequent stop losses, you should calm down, temporarily stop trading, and adjust your strategy!
2. Don’t rush to succeed; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset, don’t rush to place orders, and definitely don’t go all in.
3. It's important to recognize the big trend. When you see a one-sided market through the charts, you should go with the trend, not against it; going against the trend is the root of losses. Whether you are a novice or an experienced trader, there is a habit of trading against the trend. However, once the market trend is established, going against it often leads to severe lessons from the market. Therefore, we must learn to go with the trend and patiently wait for opportunities to trade.
4. You must manage your risk-reward ratio well; otherwise, it will be hard to make money. Ensure that your profits are greater than your losses as much as possible, and at least achieve a 2:1 ratio before considering placing an order.
5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to blindly place orders, especially as a novice player who is full of enthusiasm for the market and wants to seize every opportunity. However, most so-called opportunities will lead to losses.
6. Do not hold onto losing positions; holding onto contracts is a major taboo, especially for beginners. You must set stop losses. Holding onto positions is the beginning of falling into the abyss. Again, do not hold onto losing positions.
If you find yourself confused due to market fluctuations, unsure how to deal with a trapped situation, or feel misled during your operations.