If you decide to venture into contract trading, be sure to keep the following core points in mind! Extremely important!

1. Contract trading is about leveraging small amounts for large gains, with losses being the norm: Reactions to stop-loss situations vary. Some people impulsively open multiple positions, while the wise choose to enter a cooling-off period. If you frequently encounter stop-losses, the best strategy is to pause trading, take a deep breath, and re-plan your strategy.

2. Steady investment, reject impatience: Trading is not a shortcut to quick wealth. In the face of losses, remain calm, and do not rush for results or blindly increase positions. Patience and strategy are equally important.

3. Follow the major trends and go with the flow: Recognizing and following market trends is crucial. In a one-sided market, trading against the trend is like rowing upstream, which can easily lead to losses. Whether you're a novice or experienced, you should learn to go with the market and patiently wait for the best entry opportunities.

4. Optimize the risk-reward ratio for steady profits: Ensure that the profit potential of each trade far exceeds the potential loss, achieving at least a 2:1 ratio is worth considering. This is the key to continuous profit.

5. Avoid frequent trading, maintain restraint: Frequent trading is a big taboo in contract trading, especially for newcomers. Control the impulse to open positions, cherish each trading opportunity, and make each decision based on careful consideration.

6. Knowledge is the limit, invest rationally: Only invest in areas you understand and can control. Opportunities that exceed your knowledge often come with unpredictable risks.

7. Strictly set stop-losses, refuse to hold losing positions: Set reasonable stop-loss points and strictly enforce them. Holding onto losing positions is a major taboo in contract trading; it not only exacerbates losses but may also put you in an irretrievable situation.

8. Stay humble when profitable, avoid arrogance and impatience: Do not become complacent when profiting; maintain a calm and humble attitude because excessive confidence often accompanies the next failure.

Remember, contract trading is a marathon, not a sprint. A steady strategy, a good mindset, and continuous learning are the keys to success.

As a seasoned crypto investor, I, Tu Fei, share my experiences and insights. Interested in the crypto world but don’t know how to start? Click on my profile to see the introduction of Zhuye and witness the moment of miracles together.