Why is contract trading a bad idea? Here are four reasons. Let me tell you in detail:
First, contract trading is like playing a super fast-paced gambling game. I myself have had a painful experience. The little savings I had evaporated hundreds of thousands in a few minutes. At that time, I was like a wooden man struck by lightning. I was dumbfounded and couldn't recover for several months.
Secondly, the tolerance rate of contract trading is very low. Once the position is blown up, all previous efforts will be wasted. It takes a long time to get back the money, and it depends on luck. Remember, there are no miracles in contract trading. Don't expect to get rich overnight.
In addition, contract trading is too tempting for novices. Once you taste the pleasure of making money through contracts, the speed is simply irresistible. Even if you lose money, you always want to make up for it through contracts, which will only fall into a vicious cycle and get deeper and deeper.
Finally, contract trading can easily cause confusion in position management. Once there is a problem with position management, the ability to resist risks will be greatly reduced, and it is easy to fall into a big fall, and it may even be doomed.
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