If you play contracts, keep the following points in mind!
1. Playing contracts is about risking a small amount for a larger return; experiencing losses is normal. However, after hitting a stop-loss, two types of people emerge: some will frantically open positions, while others will enter a period of calm.
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 achieve success; trading is not a means to get rich overnight. When you encounter losses in trading, maintain a calm mindset, avoid rushing to open positions, and especially do not heavily invest all at once.
3. It's important to recognize the overall trend. When you see a one-sided market through the charts, you should go with the trend and not trade against it. Trading against the trend is the root of losses; whether you are a novice or an expert, there is a tendency to trade against the trend. However, once the market trend is established, operating against it can lead to severe lessons from the market, so we must learn to go with the trend and patiently wait for opportunities to act.
4. You must maintain a good risk-reward ratio; otherwise, it will be hard to make money. Ensure that profits are as large as possible compared to losses, and at the very least, aim for a 2:1 ratio before considering opening a position.
5. Frequent trading is a major taboo in contracts. If you are not an expert in contracts, you must control the impulse to open positions blindly, especially for novice players. They are often filled with enthusiasm for the market and want to seize every opportunity, but 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 newcomers. You must set stop-losses; holding onto a losing position is the beginning of a downward spiral. Again, remember not to hold onto losing positions.
8. Do not become complacent when you are making profits; complacency leads to losses. $BTC