Should stop-loss be set for contracts?

First of all, many people think that contracts are a terrible monster, but those who hold this view lack understanding. Existence is reasonable, and there are roughly two types of people who hold this view:

1. Those who have suffered significant losses in contracts. These individuals may have lost a considerable amount of money or even blown up several positions, which leads them to believe that contracts are indeed a terrible monster and that playing contracts will eventually lead to zero.

2. The other type is those who follow the crowd. They have never traded contracts themselves but see overwhelming statements online saying 'those who play contracts are all gamblers, and will eventually go to zero, zero, zero...' Thus, they subconsciously believe that contracts are really frightening and should not be touched.

I believe that contracts are neutral, just like a knife. If used well, one can quickly become rich; if used poorly, it can easily backfire. For those who trade contracts, the requirements are much higher than for spot trading. So, should one set a stop-loss when trading contracts?

There are two situations: the first is short-term traders, who definitely need to set a stop-loss. The second is medium to long-term traders, who may not need to set a stop-loss. Of course, the premise for both situations is to manage positions well. In simple terms, do not let extreme situations blow up your positions.

For short-term traders, the goal is to gain short-term profits. If they do not set a stop-loss, it is easy to incur losses that exceed what they can bear, causing them to exit the market permanently.

For medium to long-term traders, I feel that stop-loss is not as necessary, but this depends on managing positions well and ensuring that the position is safe enough. Whether the price drops or rises, one can always perform averaging operations. Of course, there is another very important factor: the direction must be sufficiently accurate; otherwise, this approach may lead to irreparable losses.

In summary, whether to set a stop-loss or not does not have an absolute right or wrong. The key is to consider your trading style and market conditions.

Stop-loss: suitable for short-term, high-leverage trading, or when market uncertainty is high, with the aim of controlling risk and protecting funds.

No stop-loss: suitable for medium to long-term investments, when the trend has not changed, or when positions are very light, with the aim of seizing larger opportunities.

Regardless of how you choose, the most important thing is to execute according to the plan and not let emotions dictate your decisions. Trading is a marathon, not a gamble; steady and solid advancement will allow you to go further.