Contract trading tips

1️⃣

Don't think about getting rich quickly; trading contracts requires patience. If your win rate is decent, take small wins and exit decisively. While you might miss out on larger trends by leaving early, you also avoid many trades that turn profitable into losses, which overall can still lead to profit.

2️⃣

Avoid frequent trading. From a probability standpoint, the more trades you make, the higher the chance of losing money. After winning, it’s easy to become overconfident and end up giving all your winnings back, which isn’t worth it.

3️⃣

Never place an order when you don’t understand the market. There’s no other reason; just try it and see. Placing orders blindly often leads to losses.

4️⃣

Use low leverage with wide stop-losses to increase your margin for error and avoid losing all your money through frequent automatic stop-losses. Leverage affects the value of your position, which in turn determines the size of your losses, so it’s essential to use low leverage. High leverage and heavy positions are a sure way to lose.

5️⃣

Focus on the number of wins rather than fixating on rare big trends. After all, significant trends are hard to come by; most market movements are just opportunities to exit when you are in profit; otherwise, your gains will likely be given back, or even result in total losses.