If you want to trade contracts, you must remember the following points! They are crucial!

All are practical tips! I hope they can help everyone.

1. Trading contracts is about risking a little to gain a lot; experiencing losses is normal. However, after hitting a stop loss, there are two types of people: some will start opening trades frantically, while others will go into a cooling-off period. My suggestion is that 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 facing losses in trading, maintain a calm mindset, avoid rushing to open trades, and especially do not go all-in with heavy positions.

3. It's important to pay attention to the overall trend. When you see a one-sided market from the charts, you should go with the trend and avoid trading against it; going against the trend is the root of losses. Whether you are a novice or an expert, there is a tendency to trade against the trend. However, once the market trend is established, operating against it often leads to severe lessons, so we must learn to go with the trend and patiently wait for opportunities to act.

4. You must manage your risk-reward ratio well; otherwise, it will be hard to make money. Ensure that profits are as large as possible compared to losses, and at least aim for a 2:1 ratio before considering opening a trade.

5. Frequent trading is a major taboo in contract trading. If you are not an expert, you must restrain the impulse to open trades blindly, especially for novice players who are full of enthusiasm for the market and always 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 onto losing trades; holding onto contracts is a major taboo, especially for beginners. You must set stop losses; holding onto losing trades is the beginning of a downward spiral. Again, I remind you not to hold onto losing trades.

8. Don’t get carried away when you are making profits; getting carried away will lead to losses.

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