Quotes on Contracts Obtained from Group Friends

1. Trading contracts is about risking a little for a lot, and experiencing losses is normal. However, after hitting a stop loss, there are two types of people: some will frantically open positions after a stop loss, while others will enter a period of calm. My advice is that if you frequently hit stop losses, you should cool down, temporarily stop trading, and adjust your strategy.

2. Don’t rush for success; trading is not a means to get rich overnight. When encountering losses in trading, maintain a calm mindset, don’t rush to open positions, and definitely don’t go all in.

3. Recognizing the overall trend is very important. When you see a one-way market from the charts, you should go with the trend and not trade against it. Trading against the trend is the root of losses, and whether you're a novice or an experienced trader, many have a habit of trading against the trend. However, once the market trend is established, going against it can lead to severe lessons from the market. Therefore, we need to learn to go with the trend and patiently wait for opportunities to trade.

4. You must manage your risk-reward ratio; otherwise, it will be difficult 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 positions.

5. Frequent trading is a major taboo in contracts. If you are not a contract expert, you must restrain the impulse to open positions blindly, especially for new players, who are often full of passion for the market and want to seize every opportunity. However, most of these so-called opportunities will lead to losses.

6. Only make money within your understanding; this is very important.

7. Don’t hold onto losing positions; holding onto contracts is a major taboo, especially for newcomers. You must set stop losses well; holding onto positions 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.