If you are trading contracts, spot, or swing trading, remember the following points!

1. Trading contracts is about risking a small amount for the chance of a large reward. Experiencing losses is normal, but after a stop loss, there are two types of people: some will frantically open positions after a stop loss, while others will enter a cooling-off period. My advice is if you encounter frequent stop losses, you should calm down, temporarily stop trading, and adjust your strategy!

2. Don’t rush to achieve results; trading is not a means to get rich overnight. When you face losses in trading, maintain a calm mindset, don’t rush to open positions, and especially don’t go all in with heavy positions.

3. It is important to recognize the overall trend. When you see a one-sided market through the price action, you should go with the trend and not trade against it. Trading against the trend is the root of losses. Whether you are a beginner or an experienced trader, there is a habit of trading against the trend. However, once the market trend is established, trading against it often leads to severe losses. Therefore, we must learn to go with the trend and patiently wait for opportunities to trade.

4. You must manage your risk-reward ratio well; otherwise, it will be hard to make money. Let profits be greater than losses as much as possible, and at least achieve a ratio of 2:1 for opening positions.

5. Frequent trading is a major taboo in contracts. If you are not an expert in contracts, you must restrain the impulse to open positions blindly, especially for novice traders who are filled with enthusiasm for the market and want to seize every opportunity. However, most so-called opportunities will lead to losses.

6. Do not hold onto losing positions; holding onto contracts is a major taboo, especially for newcomers. You must set stop losses properly; holding onto positions is the beginning of a downward spiral. Once again, I remind you not to hold onto positions.

If you feel confused due to market fluctuations and don’t know how to deal with being stuck, or if you feel misled during the trading process.