If you decide to enter contract trading, be sure to keep the following points in mind:
Understand the risks, stay calm: Contract trading is essentially betting small to gain big, and losses are common. After losses, many people impulsively open positions, while others choose to take a cooling-off period. My advice is: when losses occur frequently, pause trading and calmly adjust your strategy.
Avoid getting rich quickly: Contract trading is not a shortcut to overnight wealth. When facing losses, maintain a calm mindset, don't rush to open positions, and definitely avoid heavy investments.
Follow the trend: The overall trend is key to trading. When the market presents a one-sided trend, operate in the direction of the trend rather than against it. Countertrend trading often leads to significant losses, whether you are a beginner or an experienced trader, countertrend trading can lead to painful lessons.
Maintain a reasonable ratio: The ratio is the basis of trading, ensure that the ratio is at least 2:1 to open positions reasonably and increase trading opportunities.
Avoid frequent trading: Frequent trading is a big taboo in contracts. Especially for beginners, it’s easy to act impulsively in the market and miss good opportunities. Remember, most so-called "opportunities" may lead to losses.
Only earn money within your understanding: Before you fully understand the market and strategies, trade within your knowledge range and avoid excessive expansion.
Do not hold positions blindly: "Holding positions" in contract trading is a big taboo, especially for beginners. Be sure to set stop-losses, execute them timely to avoid "holding positions" that expand losses and gradually lead to a downward spiral.
Stay humble during profitable times: Stay calm during profitable times, avoid overconfidence, keep rational, and prevent losses due to excessive confidence.
Summary: Contract trading is filled with risks; calmness, rationality, and following the trend are keys to success.
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