Contract trading is not gambling! Scientific position management is the key to success

Is contract trading equivalent to gambling? Many novices choose 10x, 20x, or even 100x leverage at the beginning. As a result, the funds are just invested and the position is blown up overnight! In fact, contract trading is not gambling. The key lies in scientific position management and reasonable leverage selection.

Those who choose high leverage can be roughly divided into two categories:

The first category is the gambler mentality. This type of people think that they can get rich overnight through high leverage, but ignore the cost behind the high risk. The result is often that a slight market fluctuation causes them to quickly blow up their positions, and they simply do not have the capital to withstand the fluctuations.

The second category is blind followers who lack strategy. This type of people see others making a lot of money through high leverage, so they blindly follow suit, without considering risks and market trends at all, and eventually lead to losses.

What is the correct contract trading strategy?

Scientific position management and moderate leverage selection are the winning magic weapon in contract trading. Choosing 1-2 times leverage and reasonably controlling risks can allow you to gain a foothold in market fluctuations.

The market is unpredictable. Scientific management can help you have enough confidence when the market falls, so that you will not be frightened by short-term fluctuations.

Contract trading is not gambling. The key lies in mentality, strategy and management. Only by staying calm and operating rationally can you continue to make profits in the market.