If you must play contracts, remember the following points!!
If you must play contracts, remember the following points! It's crucial!
1. Playing contracts is about betting small to gain big; experiencing losses is normal. However, after hitting a stop-loss, two types of people emerge: some will frantically open orders after a stop-loss, while others will enter a cooling-off period.
My advice is that if you encounter frequent stop-losses, you should calm down, temporarily stop trading, and adjust your strategy.
2. Don't rush to succeed; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset. Don't rush to open orders, and definitely don't go all-in.
3. It's important to recognize the major trend. When you can see a one-sided market through the chart, you should go with the trend and not trade against it, as going against the trend is the root of losses. Both beginners and experienced traders have a habit of trading against the trend. However, once the market trend is established, trading against it can lead to severe losses, so we must learn to go with the trend and patiently wait for opportunities to act.
4. You must manage your risk-reward ratio well; otherwise, it's hard to make money. Ensure that profits are as large as possible compared to losses, and at least maintain a 2:1 ratio before considering opening an order.
5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to open orders blindly, especially for new players who are full of passion for the market and want to seize every opportunity. However, most so-called opportunities will lead to losses.
6. Only earn money within your understanding; this is very important.
7. Do not hold onto losing positions; holding onto contracts is a major taboo, especially for beginners. You must ensure you have a stop-loss in place; holding onto positions is the beginning of a downward spiral. Again, I remind you not to hold onto positions.
8. Don't get carried away when in profit; getting carried away will inevitably lead to losses.