Quotes on Contract Trading Stolen from Group Friends

1. Trading contracts is about betting small to win big, experiencing losses is quite normal. However, after hitting a stop loss, two types of people emerge: some will frantically open positions, while others will enter a cooling-off period. My suggestion is that if you frequently hit stop losses, you should calm down, temporarily stop trading, and adjust your strategy.

2. Don’t rush to achieve results; trading is not a way to get rich overnight. When experiencing losses in trading, maintain a calm mindset, do not rush to open positions, especially do not go all-in with heavy investments.

3. It is very important to understand the major trend. When you see a one-sided market through the charts, go with the trend and do not trade against it. Trading against the trend is the root of losses. Both novices and experienced traders often have a habit of trading against the trend. However, once the market trend is established, going against it often leads to severe lessons from the market. Therefore, we must learn to follow the trend and patiently wait for opportunities to act.

4. The risk-reward ratio must be managed well; otherwise, it will be difficult 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 a position.

5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to open positions blindly, especially for novice players who are full of enthusiasm for the market and always want to seize every opportunity. However, most so-called opportunities will result in losses.

6. Only earn money within your understanding; this is very important.

7. Do not hold positions; holding positions in contracts is a major taboo, especially for newcomers. You must set stop losses. Holding positions is the beginning of falling into the abyss. Again, I remind you not to hold positions.

8. Do not get carried away when you are making profits; getting carried away will inevitably lead to losses.