Should stop-loss be set for contracts?

First of all, many people think that contracts are a great danger, but this part of people lacks understanding. Existence is reasonable; there are probably two types of people who hold this view:

1. Those who have suffered significant losses in contracts. These people may have lost a lot of money, even liquidated several positions, which leads them to believe that contracts are a great danger and that playing contracts will inevitably lead to zero.

2. The other type of person is one who follows the crowd, someone who has never engaged in contracts and sees overwhelming opinions online saying, "Those who trade contracts are all gamblers, and they will eventually go to zero..." This leads them to subconsciously believe that contracts are indeed very frightening and should not be touched.

I believe that contracts are neutral, like a knife; if used well, it can lead to quick wealth, but if used poorly, it can easily backfire. For those who trade contracts, the requirements are much higher compared to trading spot. So, should we set a stop-loss when trading contracts?

There are two situations: the first is short-term traders, who definitely need to set a stop-loss. The second is medium to long-term traders, for whom a stop-loss may not be necessary. Of course, the premise of both situations is to manage positions well. In simple terms, do not let extreme situations blow up your position.

For short-term traders, the goal is to seek short-term gains. If a stop-loss is not set, it can easily lead to losses exceeding what one can bear, resulting in permanent exit from the market.

For medium to long-term traders, I feel that a stop-loss is not as necessary, although this depends on managing your position well and ensuring safety. Whether it goes down or up, you can perform averaging operations. Of course, there is also a very important factor: the direction must be sufficiently accurate; otherwise, this approach could lead to irretrievable losses.

In summary, whether to use a stop-loss or not, there is no absolute right or wrong; it mainly depends on your trading style and market conditions.

Stop-loss: suitable for short-term, high-leverage trading, or when the market has high uncertainty, aimed at controlling risk and protecting capital.

No stop-loss: suitable for medium to long-term investments, when the trend has not changed or when positions are very light, aimed at capturing larger opportunities.

Regardless of the choice, the most important thing is to execute according to the plan and not let emotions influence your decisions. Trading is a marathon, not a gamble; steady and solid progress is the key to going further.