When trading contracts, keep the following points in mind! They are crucial! All are valuable insights.
1. Trading contracts is about taking small risks for big rewards. Experiencing losses is normal, but after hitting a stop loss, two types of people emerge: some will frantically open new positions, while others will enter a cooling-off period. My suggestion is that if you encounter frequent stop losses, take a step back, temporarily halt trading, and adjust your strategy.
2. Don't rush to achieve success; trading is not a get-rich-quick scheme. When facing losses in trading, maintain a calm mindset, avoid rushing into new positions, and definitely do not over-leverage.
3. It's important to recognize the overall trend. When you see a one-sided market, go with the flow; do not trade against the trend, as that is the source of losses. Both beginners and experienced traders often have a habit of trading against the trend. However, once a market trend is established, operating against it can lead to severe lessons from the market. Therefore, we must learn to go with the trend and patiently wait for the right opportunities to act.
4. Always maintain a good risk-reward ratio; otherwise, it will be difficult to make money. Ensure that your profits are consistently greater than your losses, with a minimum ratio of 2:1 before considering opening a position.
5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must control the impulse to open positions blindly, especially for new players who are full of passion for the market and want to seize every opportunity. However, most so-called opportunities will lead to losses.
6. Only earn money within your understanding; this is very important.
7. Do not hold positions; holding positions in contracts is a major taboo, especially for newcomers. Always set stop losses; holding positions is the start of a downward spiral. Again, I remind you not to hold positions.
8. When making profits, do not get complacent; complacency will lead to losses.