In fact, contract trading is not a monster, but is misunderstood by many. They treat it as poison, while ignoring the importance of understanding its essence. Is it true that without engaging in contracts, one can only rely on hoarding to hope for wealth? Of course not.
Contract trading is not scary; the key is to find opportunities to build positions at the bottom and clearly set your stop-loss point before building positions. If the judgment is correct, hold firmly; if wrong, cut losses in time. With repeated operations, making money is actually not that difficult.
Many people fear contracts because they see them as gambling tools. But remember, we are speculators, not gamblers. Speculation requires strategy and calm analysis, rather than blindly following the crowd.
In the field of contract trading, there are many experts. C God has provided some suggestions:
Seize low-position opportunities, build positions decisively, and then wait peacefully. Don't be affected by short-term market fluctuations; hold your trend positions well and aim for large profits.
After opening a position, don't easily add to your position or roll it over. Before placing an order, fully consider various possible risks and set stop-losses properly. If you need to add to your position later, it indicates that your initial judgment may have been wrong. Rolling positions can be easily countered by the market.
Both long and short operations have opportunities, but it is recommended that beginners try going long more often. Because the upward potential is unlimited, seizing a big trend can yield substantial profits. Of course, there are also opportunities to make big money by going short, but this requires higher skills and judgment.
Next, let's take a look at the seven major taboos of contract trading:
Position syndrome: Feeling anxious without positions, but panicking with them. This mindset can lead to frequent trading and increasing losses.
All-weather trading: Don't think about being an all-rounder. Trade long in a bull market and short in a bear market. Following market trends is the way to long-term profit.
Counter-trend rebound: Rebounding requires skills and experience; don't take risks without certainty. Following the trend is the way to stability.
Hesitation in placing orders: Opportunities are fleeting; be decisive when placing orders. Don't let hesitation and fear make you miss good chances.
Main force watching orders mindset: Don't always think that the main force is watching you. In fact, they don't care about your small orders. Stay calm and operate according to your own strategy.
Fully invested operations: Trading with full positions carries too much risk. Once a judgment is wrong, it could lead to total loss. It is recommended that each position opened should not exceed 30%-50% of total funds.
Refusing to admit defeat: If you make a mistake, cut losses in time; don't stubbornly hold on. Acknowledge mistakes and correct them to continuously improve and profit.
Follow Rui Ge to steadily grow your capital!