If you must trade contracts, keep the following points in mind!!
If you must trade contracts, keep the following points in mind! It's crucial!
1. Trading contracts is essentially betting small to win big. It's normal to incur losses, but 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-loss situations, you should calm down, temporarily halt trading, and adjust your strategy.
2. Don't rush for success; trading is not a way to get rich overnight. When facing losses in trading, maintain a calm mindset, don't rush to open new positions, and definitely avoid over-leveraging.
3. It's important to pay attention to the major trend. When you see a one-sided market, go with the trend instead of against it. Trading against the trend is the root of losses. Whether you're a beginner or an expert, there’s often a habit of trading against the trend. However, once the market trend is established, counter-trend trading often leads to severe lessons from the market. Therefore, we should learn to go with the trend and patiently wait for opportunities to act.
4. Ensure a good risk-reward ratio; otherwise, it will be hard to make money. Make sure that profits are as large as possible compared to losses, at least achieving a ratio of 2:1 before considering opening a position.
5. Frequent trading is a major taboo in contracts. If you're not an expert in contracts, 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. Don't hold onto losing positions; holding onto contracts is a major taboo, especially for newcomers. You must ensure proper stop-loss measures. Holding on 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 definitely lead to losses.
Click on the avatar to follow me for free sharing of bull market strategy layouts and various contract spot reference points. Be my fan, and I'll help you succeed; you just need to relax.
