To Contract Traders: Why Do You Always Lose More and Win Less?
In contract trading, many traders often find that their stop-loss orders tend to experience a rebound shortly after being triggered, while orders without stop-losses seem to be perpetually stuck on the edge of liquidation. The reasons behind this may be more complex than you think.
First, you need to recognize a harsh reality: to some extent, you are actually gambling against the exchange or other large traders. In this kind of gamble, due to information asymmetry and differences in financial strength, you often find yourself at a disadvantage.
More importantly, your trading behavior may be “transparent.” In a highly information-driven market, some large traders or institutions can use various means to spy on your trading strategies, including your stop-loss and take-profit points. Therefore, when you consecutively make small profits, they may intentionally create market fluctuations to lure you into larger losses. This is why you might win 10 small trades but lose everything due to one large trade.
Furthermore, the phenomenon of being “stuck” in trading is not coincidental. The market often produces severe fluctuations near the key price levels you set, testing your determination and patience. If you cannot remain calm and rational, it is easy to be swayed by these fluctuations, leading to poor decision-making.
In summary, the phenomenon of losing more and winning less in contract trading is not coincidental but rather the result of various complex factors working together. To stand undefeated in the market, you need to continuously improve your trading skills and psychological resilience while learning to recognize and respond to various market traps and risks. Only then can you walk further and more steadily on the path of contract trading.
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