Playing contracts, spot trading, and swing trading? Remember these to avoid detours!

1. Playing contracts is essentially about small bets for big returns, and losses are common. After a stop-loss, there will be two types of people: one group frantically opens orders, and the other enters a cooling-off period. If you frequently hit stop-losses, you should calmly pause trading and adjust your strategy.

2. Don’t be anxious for quick success; trading is not a shortcut to wealth. Stay calm during losses, don’t rush to open orders, and avoid heavy betting.

3. Identifying the larger trend is crucial. In a one-way market, you should operate in the direction of the trend; going against it is the main cause of losses. Both beginners and experienced traders can easily go against the trend. When the market trend is established, going against it will lead to severe setbacks; you need to patiently wait for opportunities to act.

4. The profit-loss ratio should be well controlled; profits should far exceed losses, and you should consider opening orders only if the ratio is at least 2:1.

5. Frequent trading is a taboo in contracts. Non-experts must restrain their impulse to open orders, especially beginners who are eager to seize every opportunity, which often leads to loss traps.

6. Don’t hold onto losing positions; this is a major taboo in contracts. Beginners especially need to implement stop-losses well; holding onto losing positions is the first step toward the abyss and should never be done.