If you must trade contracts, remember the following points!!
Very important!
1. Trading contracts is about betting small to win big, experiencing losses is normal. However, 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 advice is that if you encounter frequent stop losses, you should calm down, temporarily stop trading, and adjust your strategy.
2. Don't rush to succeed; trading is not a means to get rich overnight. When you experience losses in trading, maintain a calm mindset, don't rush to open new positions, and definitely avoid going all-in.
3. Understanding the larger trend is very important. When you see a one-sided market through the charts, 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, many have the habit of trading against the trend. However, once the market trend is established, trading against it often leads to severe lessons from the market. Therefore, 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 the very least, achieve a 2:1 ratio before considering opening a position.
5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to blindly open positions, especially for new players who are passionate about 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 onto losing positions; holding onto contracts is a major taboo, especially for beginners. You must set stop losses. Holding onto a position is the beginning of a downward spiral. Again, I remind you not to hold onto losing positions.
8. Don't get carried away when making profits; getting carried away will lead to losses.
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