Advice for novices:

If you decide to enter contract trading, be sure to keep the following points in mind:

Understand the risks and stay calm: Contract trading is essentially about risking a lot with a small investment, and profit margins are the norm. After profit margins are stopped, many people will impulsively open orders, while others will choose a cooling-off period. My advice is: when profit margins are frequently stopped, suspend trading and calmly adjust strategies.

Avoid quick success and instant benefits: Contract trading is not a shortcut to getting rich overnight. When you encounter a loss, keep a calm mind, do not rush to open an order, let alone a heavy position.

Follow the trend: The general trend is the key to trading. When the market is unilateral, follow the trend, not against it. Going against the trend often leads to a large loss of profit. Whether you are a novice or an old hand, trading against the trend may bring you a painful lesson.

Reasonable Yingkui ratio: Yingkui ratio is the basis of profit margins. Ensure that the Yingkui ratio is at least 2:1 to reasonably open orders and increase profit margin opportunities.

Avoid frequent trading: Frequent trading is a taboo in contracts. Especially for novice players, it is easy to be impulsive and miss opportunities when facing the market. Remember, most so-called "opportunities" may bring sunflower shoots.

Only make money within your cognitive scope: Before you fully understand the market and strategy, keep trading within your cognitive scope and do not over-expand.

Don't blindly hold positions: "Carrying orders" in contract trading is a taboo, especially for novices. Be sure to stop loss and stop loss in time to avoid "carrying orders" to expand losses and gradually go to the abyss.

Don't be proud when you are in Yingli: Stay calm when you are in Yingli, avoid being overconfident, stay rational, and prevent sunflower shoots caused by overconfidence.

Summary: Contract trading is full of risks, and calmness, rationality, and going with the trend are the keys to success.

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