If you must trade contracts, remember the following points!

1. Trading contracts is about risking a small amount for a larger return, and experiencing losses is normal. However, after hitting a stop loss, there are two types of people: some will frantically open positions after a stop loss, while others will enter a period of calm. My suggestion is that if you frequently encounter stop losses, you should calm down, temporarily stop trading, and adjust your strategy.

2. Don't rush to achieve results; trading is not a means to get rich overnight. When facing losses in trading, maintain a calm mindset, avoid rushing to open positions, and especially do not go all in.

3. It’s important to recognize the larger trend. When you see a one-sided market from 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 experienced trader, many have the habit of trading against the trend. However, once a market trend is established, trading against it often leads to severe lessons from the market. Therefore, we need to learn to go with the trend and patiently wait for opportunities to act.

4. You must manage your risk-reward ratio well; otherwise, it will be hard to make money. Ensure that your profits are greater than your losses as much as possible, and aim for at least 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 blindly open positions, especially for novice 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 positions in contracts is a major taboo, especially for beginners. You must implement stop losses effectively. Holding onto a position is the beginning of a downward spiral. Once again, I remind you not to hold onto positions.

8. When you are making profits, don’t get carried away; getting carried away will lead to losses.