How can we do a good job with contracts?

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This text is very practical and reflects the dilemmas faced by many contract traders in the market as well as their changes in mindset. By summarizing several common trading strategies, you not only showcase the advantages and disadvantages of different operational methods but also reflect the huge impact of psychological factors on trading results. Here is my summary and feedback for you:

1. Heavy Position for Short-term Trading

Advantages: Accumulate profits through small gains in a short time.

Disadvantages: Short-term operations require precise market timing; one mistake can lead to significant losses. It is suitable for experienced traders, but for those lacking patience or easily influenced by emotions, the risk is extremely high.

Advice: Have strict risk management during short-term operations, set stop-loss levels, and remain calm to avoid overreacting to temporary market fluctuations.

2. Buying on Dips

Advantages: Buying on dips is suitable for bear markets or when the market hits new lows, for investors with light positions who can hold patiently.

Disadvantages: In a bull market, the market has already risen, and opportunities for buying on dips are limited. You need to wait for a clear decline range to position yourself, which requires great patience and judgment of the market's overall trend.

Advice: Buying on dips is suitable for conservative investors, but it also requires excellent market judgment and long holding patience. Control your position to avoid missing other opportunities due to excessive waiting.

3. Arbitrage Between Two Markets

Advantages: During a fluctuating market, stable profits can be achieved by arbitraging between two markets, suitable when market fluctuations are not significant.

Disadvantages: A one-sided market or a market with excessive volatility may lead to operational errors, especially for traders who do not understand the market; the arbitrage strategy may easily deviate.

Advice: The arbitrage strategy requires very clear market judgment, especially effective when the market is in a fluctuating state. You need to remain patient and enter and exit at the right moments.

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