Little White holds big funds, want to trade contracts? I'll give you a tip that guarantees you'll understand it at a glance!
When trading contracts, you must remember a golden rule: no matter how much money you have, don't throw it all in at once; you need to leave some leeway. For example, if you have 100,000 U, take out 10,000 U to play with contracts, and the remaining 90,000 is like your reserve army, always on standby.
How to play with this 10,000 U? First, you need to learn to research strategies. The terms mentioned here, such as initial position, averaging down, take profit, and stop loss, sound complicated, but simply put, they are just basic operations.
Initial position is when you first throw in 500 U to test the waters, like sending a small soldier to the front to scout and see if the market is calm or turbulent.
Averaging down means that if the situation is great, you add another 500 U to increase your stake, allowing your profits to snowball. If the market isn’t good, averaging down can help you pull the average price down, reducing some risks, just like adding a bit of fuel to a car so it can keep moving forward.
But remember, no matter how you operate, the total money you put in must never exceed that 10,000 U in the contract account; that’s your bottom line.
Take profit is about getting out when you're ahead; don’t be greedy and try to swallow the elephant. Set a profit target for yourself, and once you reach it, the system will automatically help you sell, securely putting the money in your pocket.
Stop loss means that when your losses reach a certain extent, you need to hit the brakes quickly; don’t let yourself sink deeper. You also need to set a loss limit; once it’s touched, the system will automatically help you stop loss, just like slamming the brakes when you encounter an emergency while driving to avoid bigger problems.
Let’s put it this way, trading contracts isn’t that mysterious; as long as you master these basic skills, you can manage it well.
Of course, if you want to operate in practice, it’s best to have a reliable strategy at hand, so you can be assured not to worry about bull market strategy layout, spot ambush opportunities, contract entry points, uncovering false information fog, and discovering the real market. I am Cannon Brother, welcome to join!
