If you want to enter the high-risk 'battlefield' of contracts, all friends must remember the following key points; they are crucial!
1. Don't panic after a stop loss: Contract trading is essentially about taking small risks for big rewards; experiencing losses is quite normal. After a stop loss, some rush to open positions to quickly recover losses; others wisely pause and enter a cooling-off period. Follow the advice: if you frequently hit stop losses, absolutely do not act impulsively; stop immediately, calm your thoughts, review your strategy to find loopholes, and rashly opening positions will only worsen the situation.
2. Abandon the pursuit of quick gains: Trading is definitely not a means to instant wealth. Rushing to heavily invest or eagerly open new positions after a loss is a common mistake among newcomers. Remember, maintaining a stable mindset is key; accumulating wealth requires a steady stream, and impatience won't help you succeed.
3. Follow the major trend: Once a unilateral market appears, going with the trend is a hard and fast rule! Both newcomers and veterans can easily make the mistake of trading against the trend, always hoping to 'buy low and sell high', only to be severely punished by the market. Understand the market trends, patiently wait for opportunities, and going with the trend is the way to grasp profit rhythms.
4. Control the profit-loss ratio: If you want to profit from contracts, the profit-loss ratio is the core 'checkpoint'. If you don't do this step well, profits will become illusory. Ensure at least a 2:1 profit-loss ratio before opening a position, allowing the profit space to securely cover the risk of losses; don't engage in losing trades.
5. Quit frequent trading: Newcomers especially need to be vigilant! They blindly open positions at the slightest market fluctuation, thinking there is gold everywhere, but in reality, there are mostly traps. If you haven't mastered the skills of a professional, you must control your hands, restrain your impulses, trade less, and trade wisely; this is the way to survive.
6. Guard the boundaries of your understanding: Only earn money within the limits of your knowledge; this is a hard rule. Entering the market recklessly beyond your understanding is like a blind person touching an elephant; the risks are completely uncontrollable. Deepen your knowledge and accumulate experience, and 'mine for gold' in familiar areas to ensure safety.
7. Eliminate the behavior of holding onto losing positions: Holding onto positions can be considered the 'death curse' of contracts; the first lesson for newcomers is to learn to cut losses! Once the market moves against you, holding onto the fantasy will only cause your losses to snowball, instantly dropping you into an abyss. Timely stop loss is key.
8. Don't be impatient when profitable: Don't let profits on paper get to your head; as soon as they do, trouble will follow. Overconfident traders are bound to fail, so it's even more important to remain calm, strictly adhere to trading discipline, and operate according to your strategy to maintain your profits.